More deals offered for those with equity
ANZ is offering cheaper fixed-term interest rates, but not to first-time buyers with limited equity.
Thursday, October 10th 2013, 9:47AM
by Susan Edmunds
It is advertising rates of 4.95% for six months, 5.19% for a year, 5.59% for 18 months, or 5.95% for two years to borrowers with 20% equity and existing ANZ customers.
The rates for new borrowers with less equity range from 5.45% for six months to 5.95% for two years.
It is also making a grab for other banks’ customers, offering the special rate to those who refinance their loans to ANZ from somewhere else.
But those borrwers will need to be prepared to pay the low-equity fee upfront if they have less than 20% equity. “The new loan must be no more than the existing loan, to the same borrowers, and the same property must be used as security.”
Broker John Bolton said the banks’ drive to lock in customers with more equity because of the new LVR speed limits would pay off for those who had been in the market for a while or had bigger deposits.
“Below 80%, it’s really competitive. If you’ve paid off a bit of your loan, there’s rewards there.”
Kiwibank also reserve its best rates for those with more equity.
| « Wheeler explains why loan-to-value ratios were introduced | Low equity loans for good brokers only » |
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