A Home Loan Rate That's Going Down?

Press Release: Superbank

Monday, July 19th 2004, 9:27AM

by The Landlord

A Home Loan Rate That's Going Down? Introducing Superhomeloan SuperHomeloan loyalty discount a New Innovation as Superbank Enters New Zealand Home Lending Market

WELLINGTON, Superbank today announced the immediate availability of SuperHomeloan, a new home lending offering that rewards customers for the length of their relationship with the bank. The SuperHomeloan loyalty discount is a first of its kind in New Zealand banking. SuperHomeloan customers receive an increasing discount over time against the interest rate applied to their mortgage, up to 0.6% per annum. This would save a customer $10,000 during the life of a 25-year home loan for $210,000. At 7.5% interest over the life of the 25-year lending period. Superbank is also committed to delivering competitive interest rates for first-time buyers, refinancers and property investors, offering a launch rate of 7.29% for a 21-month fixed term. SuperHomeloan offers, as standard, features that other banks use to bargain with in home lending negotiations. For example, all SuperHomeloan customers receive a fee-free SuperAccess EFTPOS and cheque account. Dishonor fees apply if the account is operated in debit or outside of agreed overdraft limits. Superbank believes all customers should have access to the best value deals without having to ask for them.

Consumers nationwide can get information about this new offering from Superbank's website (www.superbank.co.nz) or by calling free on 0508 226 546. SuperHomeloan is distributed through Superbank mobile managers, direct by phone and through six leading mortgage brokerages; Mike Pero Mortgages, Mortgage Choice, Mortgage Express, Mortgage Link, Mortgage People and Ray White Financial Services.

Superbank research shows the loyalty discount was strongly received and is perceived as a major point of difference by home lending customers.

"We found many customers feel that banks concentrate on providing good deals to attract new business but do very little, if anything, to reward existing customers - Superbank does both. The SuperHomeloan loyalty discount reinforces our desire to innovate and deliver unique offerings that traditional banks can't easily follow," says James Munro, chief operating officer of Superbank.

The launch of SuperHomeloan will be supported by a broad reach marketing campaign to drive SuperHomeloan awareness, including print and television advertising. There will also be heavy in-store promotion across 100 Pak'nSave and New World stores nationwide.

Example - How the SuperHomeloan Loyalty Discount Works A couple purchases their first home in August 2004 by taking out a SuperHomeloan of $210,000 for 25 years at the then current rate of interest of 7.5% (this example assumes that the market interest rate remains static for the duration):

• On the second anniversary of the loan, in August 2006, their interest rate would discount 0.10% to 7.4% per annum (while the market rate is at 7.5%). •

On the fourth anniversary, in August 2008, their interest rate would discount a further 0.05% to 7.35% per annum (while the market rate is at 7.5%). •

Every two years after that, their interest rate would continue to discount a further 0.05% until the maximum discount of 0.60% is reached, in August 2028. Their rate is then 6.90% per annum, while the market rate is at 7.5%. •

This would result in savings of $10,000 during the period of the loan, not to mention the bank fees that would have been saved by running a fee-free EFTPOS & cheque account. Dishonor fees apply if the account is operated in debit or outside of agreed overdraft limits.

SuperSaver Reaches Quarter Billion Dollars in Deposits Three Months Early The launch of SuperHomeloan comes on the back of continued strong performance by the bank, which recently saw deposits in its SuperSaver

"Term Deposit Killer" surge to $NZ250 million, three months ahead of its end-September target.

About Superbank: Superbank is the trading name of St.George Bank New Zealand Limited. Superbank is a joint venture between Foodstuffs New Zealand and St.George Bank Ltd of Australia. St.George Bank Australia is a listed company in Australia and has assets over AUD $55billion.

The Foodstuffs group of companies (New World, Pak 'N Save, Write Price and 4 Square) is the 4th largest trading organisation in New Zealand. People can open an account very simply: by calling 0508 226 546, by visiting www.superbank.co.nz or by picking up an application form from a supermarket and posting it in.

Monday, 19 July 2004, 10:34 am
Press Release: Superbank

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