Kiwibank stays aloof from home loans price war
The government-owned Kiwibank has chosen not to participate in the pricing war in the home loans market which has seen the major banks slash their profit margins to the bone.
Monday, November 22nd 2004, 2:19AM
by Jenny Ruth
While Bank of New Zealand is offering a two-year fixed rate loan at 6.90%, ANZ Bank and ASB Bank are offering two-year fixed rate loans at 6.95% and Westpac is offering a "special" of 6.99% fixed for 18 months, Kiwibank’s two-year fixed rate remains significantly higher at 7.35%.
That’s despite the fact that Kiwibank still guarantees that its home loan customers will be better off over a six-year period than they would with the major banks.
Kiwibank spokesman Bruce Thompson says while that guarantee remains in force but his bank doesn’t try to match short-term offers on individual rates.
It remains confident its loans will still be cheaper over time.
If they aren’t cheaper, Kiwibank has pledged to pay its customers the difference.
"We have a more holistic view of the value of the Kiwibank home loan offer," Thompson says.
The advantages include the guarantee, Kiwibank’s lower fees and its longer opening hours, he says.
Kiwibank’s floating rate at 8.25% is still well below the major banks’ floating rates, ANZ, ASB, BNZ and National Bank all charging 8.75% and Westpac charging 8.80%.
To compare rates go to the rates table at http://www.goodreturns.co.nz/section/200.html.
Rates can be sorted on a lowest to highest basis (and vice versa). Go there NOW
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