In just over a month since ASB launched its special Back My Build home loan rate to boost housing supply and help Kiwis onto the property ladder, the bank has received applications for more than $2 billion in lending to support the construction of 3,000 new homes.
The Back My Build home loan offers a 1.79% three-year variable interest rate for customers building a new home or purchasing a home and land package.
ASB General Manger Direct Channels Glen Martin says interest in Back My Build has exceeded expectations.
"Initially our goal was to approve 1,000 Back My Build home loans over the first year, so to receive 3,000 applications in just over a month is phenomenal and testament to the huge demand for more affordable property.
"Housing supply continues to be a huge issue for New Zealand so we're really proud to be helping address this and see more Kiwi families achieve their home ownership dreams."
The ASB Back My Build variable rate is available for up to three years from when the customer makes their first draw-down. Because it's variable, customers are also free to make lump sum payments or fix their rate at any time.
In addition to this, ASB Back My Build home loan customers receive cash back if they incorporate green design into their build. Mr Martin says it's been encouraging to see the level of interest for more energy-efficient healthy homes.
"While we are very focused on increasing the supply of homes, it's also important to encourage environmentally sustainable housing.
"We partnered with the New Zealand Green Building Council to support this by reimbursing customers $2,000 if they can prove their intent to build a 6 Homestar rated home (or higher), and we're pleased with the amount of interest we've had in taking up this offer.
"As a bank lender, we can really play a big part in helping solve the housing supply issue by making it easier for Kiwis to choose new build homes, and we're definitely seeing the benefits of this already," says Mr Martin.
More information can be found on the ASB website at asb.co.nz/back-my-build