Kiwibank does another home loan "special"

By Jenny Ruth

Thursday 17th February 2011

Kiwibank is slashing its six-months fixed home loan rate by 40 basis points to 5.95% for a limited period.

"We're trying to do something slightly unconventional - that is, attract business at a time when interest rates are static," says Kiwibank spokesman Bruce Thompson.

A similar special promotion of a one-year fixed rate ran in January was "hugely successful. Clearly, there are shoppers out there watching and waiting for the banks to do something new," Thompson says.

Kiwibank's previous two-year fixed rate of 6.35% matched those of ASB and ANZ National but was above Westpac's at 6.25%. BNZ offers two six-months fixed rates, 6.3% and 6.4%.

However, Kiwibank's new rate isn't the lowest in the market - HSBC's rate is 5.74%. However HSBC's offer is only open to those with combined mortgages of $500,00 or at least $100,000 invested with it.

Kiwibank's new rate does beat the next lowest six-month rate, Public Trust at 6.1%.

See how Kiwibank stacks up against the other lenders at www.mortgagerates.co.nz

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