15 November 2004
Media release for immediate use
war re-ignited as Bank of New Zealand lowers two-year fixed
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.