Mortgage rates cut - Kiwibank moves most below 9 per cent

Kiwibank has reduced home loan interest rates, bringing most fixed rates below 9 per cent a year.

The key three-year rate was down to 8.79 per cent, which Kiwibank said was significantly below competitor banks.

Chief executive Sam Knowles said Kiwibank had been monitoring the markets carefully and had seized an opportunity to make immediate cuts.

All fixed rates from two to five years were now below 9 per cent.

Kiwibank had been able to use strong growth in deposits to fund lending, Knowles said.

Kiwibank said its rates were: one year 9.29 per cent (down 0.11 per cent); two year 8.99 per cent (no change); three year 8.79 per cent (down 0.26 per cent); four year and five year 8.99 per cent (both down .06 per cent). The two and three year rates are only available for home owners or home purchasers with 20 per cent or more equity in the property.

- NZPA