Co-operative Bank offers the lowest rate for floating home loans in NZ
The Co-operative Bank has taken a leading position in the market by passing on the full extent of Official Cash Rate (OCR) reductions to its floating home loan customers.
Since the Reserve Bank began cutting the OCR 15 months ago – from 5.5% down to 2.5% – The Co-operative Bank has responded by reducing its floating home loan rate by 3.1%. This makes it the only bank in New Zealand to have fully passed on the benefits of the OCR cuts to floating rate borrowers.
The table below shows the rate reductions across loan providers in NZ in the current cycle since July 2024.
|
Bank |
Interest Rate Reduction |
|
OCR |
3% |
|
The Co-operative Bank |
3.10% |
|
2.70% |
|
|
2.70% |
|
|
2.65% |
|
|
2.75% |
|
|
2.55% |
With a floating home loan rate of 5.3% – the lowest variable rate available to all customers across New Zealand banks – The Co-operative Bank encourages Kiwis to review their options and choose a bank that prioritises fairness and delivers the level of service customers deserve.
Floating rates offering flexibility
Chief Executive Mark Wilkshire said floating rates allow customers to adjust more easily to changing market conditions and benefit from potential rate drops.
“We’ve seen our floating loan volumes nearly double over the past year, and we’re proud to offer a rate that delivers both value and flexibility,” he said.
WIlkshire said many Kiwis may be missing out on over $100 million in annual savings because the Big Four Australian banks haven’t passed on the full floating rate reductions.
“As a customer-owned bank, we put people first when making pricing decisions,” he said.
“With another OCR review scheduled for the end of November, it will be telling to see how other banks respond amid a still-fragile economic recovery.”
