Kiwibank has slashed its variable loan rates by 100 basis points in a move it says will save home loan and business banking customers $20 million.
The state-owned bank has dropped it floating and offset mortgage home loan rate from 4.4 per cent to 3.4 per cent and its revolving home loan rate from 4.45 per cent to 3.45 per cent.
While its business variable loan rate will fall from 6.5 per cent to 5.5 per cent, business revolving to 6.75 per cent and business overdraft rate from 8.5 per cent to 7.5 per cent.
The rate cuts come in for existing customers from June 29 and for new customers from June 15.
Steve Jurkovich, Kiwibank chief executive, said the move would save $20m for more than 35,000 thousand home loan and business banking customers and would reduce the pricing gap between fixed and variable rates.