Banks announce cuts in mortgage rates

This morning sees some reductions to fixed-term mortgage rates - but not by very much.

Kiwibank announced today it was cutting its six month and one year mortgage rates by 34 and 10 basis points (bps), respectively.

Kiwibank's new standard six month rate will be 5.45 per cent and its standard one year rate 5.59 per cent.

The changes come following comments by Reserve Bank Deputy Governor Grant Spencer that the RBNZ was disappointed banks had not yet passed on the April 30 Official Cash Rate cut to variable mortgage rates.

Still, no bank has cut its variable rate since the 50 bps cut in the OCR. Kiwibank is currently offering the lowest bank variable rate at 5.99 per cent.

Also this morning, AMP cut its six month and one year mortgage rates by 29 and 19 bps, respectively. Its new standard six month rate will be 5.50 per cent, and new standard one year rate 5.60 per cent.

SBS also cut its one year mortgage rate for the second time in the week, today cutting by 20 bps to 5.50 per cent. It had earlier cut the rate from 5.79 per cent to 5.70 per cent.

- INTEREST.CO.NZ.