22 October 2004
Bank of New Zealand sets new ‘unbeatable’ benchmark in battle for 2-year fixed rate
We’ve been challenged once, twice and now three times. But we remain: unbeatable.
As part of its ‘Unbeatable’ campaign, and just 24-hours after the last cut, Bank of New Zealand announced today it is reducing its two-year fixed home loan rate to 7.15%pa, a drop of 0.10%. The new rate is effective from Monday 25 October 2004.
This move is in response to a competitor attempting to match the bank’s ‘Unbeatable’ rate, and is the third rate drop since the spring campaign began on 6 October.
Bank of New Zealand’s General Manager for Business Development and Strategy, Andrew Whitechurch, says the bank’s ‘Unbeatable’ campaign has started a price war, with the ultimate winners being consumers.
“In the past seven days, we’ve seen Bank of New Zealand’s two-year fixed rate move from 7.40%pa to this new rate of 7.15%pa. ‘Unbeatable’ has turned the whole fixed rate market upside-down, and home loan buyers are laughing all the way to the bank teller,” says Mr Whitechurch.
Mr Whitechurch says the bank has moved very quickly with competitors’ attempts to match Bank of New Zealand’s two-year fixed rate.
“When you tell people you’re unbeatable, you’re throwing down a challenge to your competitors. Needless to say, our promise to customers of having some of the sharpest fixed-rates on the market remains intact. ”
The ‘Unbeatable’ campaign was launched to coincide with spring, traditionally one of the most popular times for homebuyers. To take advantage of the ‘Unbeatable’ offer, home loans must be drawn by 17 December 2004.