Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Small bank takes on large ones for big loans

Small bank takes on large ones for big loans

The past week has been a relatively quiet one in terms of the quantum of changes to home loan rates, but there has still been plenty of heat amongst those battling it out at the bottom of the two-year rate table.

BNZ, Bank Direct and now Kiwibank have been going at it with one-upmanship advertising campaigns on television and in the some of the metropolitan dailies.

One of the newest ones was Kiwibank, on Saturday, telling its competitors to stop their "bickering" over what is unbeatable.

Currently Kiwibank and Bank Direct are offering two-year rates of 7.50% and BNZ is offering 7.60%.

The more significant moves during the past week were that ASB Bank and its sister company Sovereign put up their one-year rates on Friday to 7.80%.

Also Superbank increased all its rates with the exception of the one-year one.

Two of the trustee companies, Guardian Trust and Perpetual Trust also increased rates during the week, and the last of the floating rate increases trickled through from some of the smaller lenders.

Most lenders have now increased their floating rate 25 basis points in line with the Reserve Bank's March 10 increase in the official cash rate.

The other development, which is the opposite to the two-year price war, is that HSBC has today (Tuesday) launched its "Home Loan Plus" package which is designed to compete against Westpac and ANZ for customers in the upper end of the market: "High income customers with borrowings of more than $300,000 in Auckland/Wellington regions and $250,000 in all other regions and especially those with loans over $500,000."

HSBC is offering discounts of up to 50 basis points on floating rates and 20 basis points on fixed rates for these customers along with a number of other sweeteners.

Two-year rates range from Bank Direct and Kiwibank's 7.50% rate up to 8.64% that is being offered by Rotorua-based NZ Mortgage Funds. Most of the large banks are sitting on two-year rates of 7.80%.

One-year rates are very similar. Bank Direct is the lowest at 7.50% and NZ Mortgage Funds are the highest at 8.73%.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>


Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>


RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>


ScoopPro: Helping PR Professionals Get More Out Of Scoop has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>