Another bank drops home loan rates ahead of OCR review

Kiwibank has joined other banks and dropped its mortgage rates ahead of next week’s Official Cash Rate (OCR) announcement.

The bank listed new 6 month, 1 and 2 year fixed rates, with the 6 month standard fixed rate dropping from 6.19% to 5.99%, the 1 year fixed rate moving to 5.69% and the 2 year rate now 5.79%.

It also listed a special 1 year rate of 4.79% fixed for one year, down from the previous special 1 year rate of 4.89%.

BNZ dropped its home loan rates on Wednesday.

The bank reduced its rates between 0.06% - with its two-year fixed rate now 4.89% - and 0.2%, with its 6 month fixed rate becoming 5.09%.

BNZ’s 1 year fixed rate becomes 4.79%, the 18 month rate also 4.79% and the three year fixed rate 4.99%.

The bank’s move followed cuts from ANZ, which said it was dropping its one-year fixed rate special to 4.79%.

Economists expect the OCR will drop as the economy struggles with a five-year high unemployment rate and the shock of US tariffs on New Zealand goods.

The Reserve Bank will announce its decision on 20 August.