BNZ and Westpac stay out of new build loan battle
BNZ and Westpac have no plans to introduce cheap variable rate loans for new builds, despite their big four rivals launching aggressive offers in recent weeks.
Monday, July 5th 2021, 12:18PM
ANZ last week introduced a 1.68% variable rate for new build homes, becoming the cheapest floating rate in the market.
While ASB previously launched a "Back my Build" rate at 1.79% in May, tapping into the Reserve Bank's cheap Funding for Lending Programme.
Although ASB has enjoyed record demand from its new build launch, with more than $2 billion in loan applications, rivals BNZ and Westpac have not got similar plans in the works.
BNZ's cheapest floating rate is 4.55%, while Westpac's is 4.59%, with no special products for new homes.
A BNZ spokesman said the current market was "very competitive".
He did not have any pricing changes to announce, but urged borrowers "to take a look at all their options and be aware of any conditions that might apply to the lending": "BNZ is a big supporter of first home buyers and we are focussed on what we can do to help more new homes onto the market. We have 12-month pre-approvals for new builds giving customers lots of time to progress through the new build process.
"Depending on the specifics of the deal we can lend on just a 10% deposit and we have increased the number of bankers who are able to help customers navigate the process of building a new home," the BNZ spokesman added.
Westpac said it had nothing to announce, but "constantly review[s] our policies and pricing to ensure we provide good value to our customers".
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