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Kiwibank - Source: ONE News -
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Kiwibank has extended its special fixed home loan rate of 4.99% but has shortened the term to six months, the bank announced today.
The original special, launched in May this year, was a 12 month deal.
The state-owned bank today said the six-month deal is still only available for a limited time, but the timeframe has been extended because of the success of the promotion.
"The one-year promotion resulted in an unprecedented response from home owners seeking a level of certainty and protection from rate rises," said Kiwibank.
The special requires a minimum of 30% equity in the property.
Kiwibank has also cut its other short-term fixed rates with its standard one-year rate now 5.25%, its two-year rate reduced to 5.55% and three year trimmed down to 5.75%.
The four and five year rates were cut to 6.10% and 6.50% respectively.
Kiwibank said other banks has been in a "flurry" to lower their own fixed mortgage rates to compete.
All the major banks have now dropped their short-term fixed rate deals, with ASB Bank matching ANZ, National and Westpac's one-year fixed rates at 5.25%.
Kiwibank originally started the special deal to try to entice more customers, especially after consumer research figures showed it was gaining on its bigger rivals.
The Roy Morgan data claimed the bank had 9.4% of the customer share in February 2012, compared to 5.5% in 2007.