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


BNZ lowers two-year fixed rate below 7 per cent pa

15 November 2004
Media release for immediate use

Price war re-ignited as Bank of New Zealand lowers two-year fixed rate
below 7 per cent pa

After a two-week hiatus, and in response to a move by a competitor, Bank of New Zealand has dropped its two-year fixed home loan rate to 6.90 per cent pa, re-igniting the fixed rate price war started with the Bank’s ‘Unbeatable’ home loan campaign back in October.

The reduction ensures Bank of New Zealand’s two-year fixed rate remains the lowest of the big five banks, and honours its ‘Unbeatable’ promise to consumers.

Bank of New Zealand’s General Manager for Business Development and Strategy, Andrew Whitechurch, says ‘Unbeatable’ continues to reap rewards for home loan customers.

“In a little over a month our two-year unbeatable rate has dropped three times, and for the first time since early May, our two-year fixed rate is below 7 per cent pa. Home loan buyers must be pinching themselves.”

Mr Whitechurch says Bank of New Zealand is committed to offering low fixed rates.

“Our margins aren’t eroded by paying commissions to brokers, so we can afford to keep our fixed rates. We want customers to instinctively choose Bank of New Zealand first when shopping for a home loan, and the ‘Unbeatable’ promise is encouraging home loan customers to do just that.”

Since the campaign began on 9 October, Bank of New Zealand’s two-year fixed rate has dropped from an already market leading 7.40 per cent pa to the new rate of 6.90 per cent pa. On an average fixed rate home loan of $123,000, based on a 20-year term, that’s a saving of $37.14 a month on repayments.

“‘Unbeatable’ is proving to be one of our most successful spring campaigns yet. We’re winning more than our share of new home loan customers, and this new unbeatable rate will have more customers beating a path to our door,” says Mr Whitechurch.

The ‘Unbeatable’ campaign was launched to coincide with spring, traditionally one of the most popular times for homebuyers. To take advantage of the Bank’s offer to 'better any two-year fixed home loan rate currently advertised by the other four big banks’, home loans must be drawn by 17 December 2004.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>

MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>

DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>

Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>