Mortgage price war heats up with TSB

TSB has hit the market with an aggressive price offer, promising to match any one year home loan rate offered by an "Australian-owned" lender.

Monday, February 18th 2019, 8:19AM 2 Comments

Donna Cooper

The New Zealand lender has taken aim at its Aussie-owned big four rivals with the offer, which came into effect yesterday, and runs until March 3 2019. The offer is open to owner-occupiers and property investors, and arrives at a time of fierce competition in the lending market. Wholesale lending rates have dropped amid a growing expectation we may see an OCR cut this year. The lowest one year rate on offer from the big four is Westpac's 3.99% one year special.

Donna Cooper, chief executive of TSB, said the offer was the first of its kind in the New Zealand market. "We know this is a bold and unique move in the New Zealand banking industry. But we believe it is an important move that will help support the good of wider New Zealand."

TSB took aim Australian-owned lenders reaping profits in New Zealand and sending them overseas. “More than $5 billion in combined profit was sent overseas by Australian-owned banks last year, that’s equal to almost 2% of New Zealand’s entire GDP.

“At TSB we don’t think that’s quite right. If that money stays in New Zealand, it can continue to move through our local economy and boost regional growth," Cooper said.

The nationalist approach from TSB comes as Australian lenders are braced for a major fallout from the Royal Commission into financial services. The country's major banks have been censured for endemic misconduct over the past year.

Justine St John, TSB General Manager, added: "With an increasing spotlight on overseas ownerships of banks, we are proactively encouraging New Zealanders to consider their banking options."

Tags: TSB

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Comments from our readers

On 18 February 2019 at 9:15 am Mikha said:

Haha! We left TSB just over a year ago, went out of our way to try to stay with them. They didn't want to work with our broker, and then they wouldn't go close to our other offers.

We got stung by a hefty break out fee a few years back with them too (not disclosed when we took out our first mortgage with them, and that wasn't a pleasant experience either).

TSB has a unique reputation these days (it used to be about the lower account fees) but it's not the one they think they have. Do they even realize this tactic shouts "follow the leader"???

On 19 February 2019 at 5:12 pm Tonethebone said:

Not sure that matching a competitor is that great! Is they are serious they would beat any offer. Just a way to get free publicity methinks.

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