ASB is moving from having two fixed home loan rate cards for home lending to just one, a move that will put thousands of dollars back into the pockets of first home buyers with less than 20% equity.
The bank has previously offered two rate cards; special rates for customers with 20% equity and standard rates for all other customers. The move will allow all customers to access lower rates, irrespective of their equity levels.
ASB is the first of the main banks in the market to have a single rate card offer – a move its executive general manager for Retail Banking Craig Sims says is aimed at helping more Kiwis into home ownership.
"The home ownership journey is an incredibly exciting one, but we know it can also be stressful for many of our customers. The move to a single rate card is going to help make it simpler and easier.
"More importantly however, this change is going to save our low equity first home buyers thousands of dollars each over the course of their home loan repayments, which will make a significant difference to their financial wellbeing," says Sims.
"This is going to help our first home buyers in particular, as they often have lower equity, and so face higher rates. This will give them a leg up and hopefully help more New Zealanders into home ownership," says Sims.
Over the last few months the bank has made a number of moves to support its home loan customers, including cutting home loan rates to record lows and launching ASB Compassionate Care, a free home loan benefit which covers around 12 months interest costs on eligible home lending if one of the borrowers on the home loan passes away.
The move to a single rate card, removing higher rates for lower equity customers is the latest move to support home lending customers.
The change is effective from 16 July 2020. A low equity margin will still apply for customers with less than 20% equity, and lending criteria and conditions apply.
"We have a really important part to play in people’s home ownership journey and this is going to put money back into the pockets of our customers, which is something we’re really proud of," says Sims.
To view our latest rates, please visit https://www.asb.co.nz/home-loans-mortgages