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


Simplicity Expands In Mortgages, Offering 2.25% Floating Rate To All First Home Buyers

All first home buyers can now access a 2.25% floating home loan rate, the lowest in New Zealand, via Simplicity KiwiSaver Scheme.

The floating rate was previously only available to existing Simplicity members who had been with the provider for one year.

But given its fast growth, Simplicity is now offering the rate, with no waiting period, to every first home buyer in New Zealand who switches to its KiwiSaver scheme.

Floating rate mortgages offered by banks range from 3.4% from Kiwibank, to 4.59% from Westpac.

“Not only will first home owners pay a much lower floating mortgage rate than any bank, our KiwiSaver fees are lower too” says Simplicity Founder and Managing Director Sam Stubbs.

“Staying with a bank KiwiSaver scheme is looking sillier by the day” he said.

Mortgage lending also increases returns, giving members a 2.25% return for mortgages, instead of less than 1% at the bank.

Anyone who qualifies as a KiwiSaver first home buyer can switch to Simplicity in two minutes, and apply for a first home loan, subject to lending criteria.

Mr Stubbs was scathing of current bank mortgage rates, saying they were far too high.

“The banks know that a low floating rate mortgage, with no break fee, is the fastest way to pay off a home. Yet most still charge floating rates of over 4%” he said.

“It keeps borrowers locked into fixed rates, so they can’t pay off their mortgage as fast as possible. That’s just wrong” he said.

Simplicity launched its home loan programme by ballot in 2019.

Mr Stubbs challenged the banks to match their rate, given their huge scale. “I’m not holding my breath on the banks dropping their rates. They are more worried about their profits” he said.

Simplicity is a nonprofit disruptor in New Zealand’s financial services industry, determined to make a positive difference in the financial lives of hard working Kiwis. Started four years ago, it now has over 60,000 members and almost $3 billion of funds under management.

Simplicity was recently awarded KiwiSaver Fund Manager of the Year by Morningstar, and Consumer NZ’s ‘People’s Choice’ award for KiwiSaver.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>