Bank of New Zealand (BNZ) has announced changes in home loans, term deposits, and contactless transaction fees to provide its personal and business customers more certainty.
BNZ Chief Customer Officer Paul Carter, says, “BNZ’s focus is very clear – we’re doing everything we can to support our customers when they need it the most.
“During these unpresented times, we are offering home loan customers our lowest advertised rates ever,” says Carter.
The changes in BNZ Classic home loans are:
- 1 year – 3.09% (-40bps)
- 18 months – 3.05% (-34bps)
- 2 years – 3.35 (-20bps)
“3.05% is the lowest advertised home loan rate ever from BNZ and being able to lock it in for 18 months means more certainty on this low rate for longer, which we know customers want at this time,” says Carter.
These changes follow the 75bps cut to the floating rates BNZ announced on Monday, and cuts to the three, four, and five-year rates last week (11 March). The new rates are effective 23 March.
BNZ is also acting to support its savers who are facing falling deposit rates.
“As the cash rate and home loan rates fall, one thing that’s not often mentioned is the impact on savers facing lower incomes from falling deposit rates. We know this particularly affects retirees and people on fixed incomes, so we’ve acted decisively to help support them with a strong lift in our 18-month term deposit rate,” says Carter.
Effective 23 March, the 18-month special term deposit rate will be 2.65%, up 25bps.
Following the wide range of increased support for businesses announced earlier this week, BNZ will also be waiving all contactless debit transaction fees for SMEs for the next three months.
“From today we will waive contactless debit transaction fees for the next three months to provide additional help and support for our SME customers.
“This is in addition to our existing business package, which also includes reduced overdraft rates, up to 100% asset finance funding at reduced rates, extensions of Trade Credit, Principal repayment holidays, and options for Interest only.
“In uncertain times, we want to offer our customers as much certainty as possible, and we’re working hard to provide New Zealanders with the help they need,” says Carter.