A Kiwi Amongst The Pidgeons

Kiwibank late last week gave the home loan interest rate market a shakeup, trimming home loan fixed interest rates across the board.

Spring, in the home loans market, has often been marked by one off promotional interest rate deductions, and “special offers” over the years.  This year was shaping up to be pretty tame with the major lenders preferring to offer extensions to pre approvals and some help with one’s professional fee’s, rather than heavily promote a discounted interest rate.

Kiwibanks home loan fixed interest rate cuts have given the market a shake up though and today Westpac Bank has responded.  They have cut their fixed interest rates also.

0.41% comes off the 2 year fixed interest rate which now sits at 5.89%.

The 4 year fixed interest rate gets the most lopped off, down by 0.45% to 6.85%.

Fixed versus Floating…aaahh that is the question. 🙂

Fixing won’t suit everyone due to differing circumstances, so please ensure you sit down with someone knowledgeable and discuss the pro’s and con’s of doing so before leaping at these shiny new, and sparkling, interest rates.

Enjoy your week. (And to the All Blacks, their Management and Crew…You were Awesome!!)

OCR unchanged at 2.5 percent at October Meeting

In line with the last OCR meeting in mid September the Reserve Bank has left the OCR unchanged at 2.5 percent this morning.

The Governor commented..

“Given the ongoing global economic and financial risks, it remains prudent to continue to keep the OCR on hold at 2.5 percent for now. However, if global developments have only a mild impact on the New Zealand economy, it is likely that gradually increasing pressure on domestic resources will require future OCR increases.”

In other news ANZ Bank used the cover of the recent credit rating downgrade and the build up to the Rugby World Cup Final to last week announce an increase in the interest rate on their revolving credit home loans.  Applying from the 1st of November this floating rate goes from 5.65% to 5.85%.  In the notification letter to customers no reason was given. It opened with the rather non explanatory sentence “I’m writing to let you know about a change to the interest you pay on your…”