Kiwis wanting to call a new build home their own are set to benefit from ASB’s new Back My Build home loan which offers a market leading 1.79% variable interest rate for customers building a new home from scratch or purchasing a home and land package.
ASB Back My Build uses funds available under the Reserve Bank of New Zealand’s Funding for Lending Programme and honours ASB’s commitment to use these funds for productive lending that benefits all New Zealanders.
ASB’s Executive General Manager of Retail Banking, Craig Sims, says that includes helping create a more sustainable housing market by addressing housing supply issues.
"We’re thrilled to be offering this very sharp interest rate to encourage more customers to consider new build options. Our goal is for Back My Build to result in ASB issuing around a thousand additional new build home loans in the coming 12 months.”
"Housing supply is a huge issue for the New Zealand economy. That is why we’re keen to give a leg-up to customers who want to join us in being part of the solution. We’ve deliberately chosen to make the offer available to both owner occupiers and investors in recognition of the role investors can play in making new, high quality homes available for Kiwi families.”
In addition to the market leading 1.79% variable interest rate, customers taking out the ASB Back My Build home loan will also receive cash back if they incorporate green design into their build.
"A more sustainable housing market is about increasing housing supply, but it is also about creating more energy-efficient healthy homes. That is why we have partnered with the New Zealand Green Building Council to encourage Back My Build homes to incorporate sustainability principles, by reimbursing customers $2,000 if they can evidence their intent to build a 6 Homestar rated home (or higher)."
The ASB Back My Build variable rate will be available for up to three years from when the customer makes their first draw-down. A variable rate means customers are also free to make lump sum payments or fix their rate at any time.
Mr Sims says, "The ASB Back My Build variable rate is unique and we’re confident that the special market leading rate coupled with the Homestar reimbursement is going to make a significant difference to first home buyers in particular, while helping to create a more sustainable housing market longer term."
More information can be found on the ASB website at asb.co.nz/back-my-build