Intense competition in the mortgage market is throwing up a stack of attractive offers.
Monday, April 19th 1999, 12:00AM
by Paul McBeth
Intense competition in the mortgage market is throwing up a stack of attractive offers for homebuyers, who are being courted with everything from no-fee promotions and money towards legal costs to free interest holidays and prize draws.
The latest hot deals include those from:
Bank of New Zealand, which is waiving its application fees until the end of this week. Those applying for loans above $100,000 also receive $250 towards legal or moving costs.
ASB Bank's deal: everyone with a current ASB Home Loan, Orbit Home Loan or Flexible Finance Facility as at April 16 goes in the draw to have their loan cut in half (to a maximum $50,000).
ANZ Banking Group, which is waiving its application fee on variable rate loans above $75,000 until the end of the month.
Among the non-bank lenders, Freedom Financial Services is waiving its application fee (usually $500 for owner-occupied properties) until the end of the month as well as shelling out $400 towards legal costs.
Other recent promotions included Ergo, which refunded its $400 mortgage application fee until the end of March, and WestpacTrust's zero percent interest deal on its Choices home loan. The National Bank kicked off with a no-application fee offer and then touted a special six month fixed rate (this offer held until April 9).
BNZ spokesperson Sarah Hensley says the BNZ launched its offer on March 21 "to take advantage of increased activity in the housing market at present" - not to mention giving things a bit of a rev up before the traditionally slower winter months. However, she points out that while all these offers are helpful in the short term, customers also need to consider the interest costs over the life of their loan.
Hensley says the bank chose its particular deal for customers because its research showed they valued no-fees offers "and the moving costs contribution is seen as an additional benefit".
"We recognise that, when people are moving home, cash can be a bit tight. We wanted to offer some way to help them that wasn't gimmicky. Also, cash gives people more choice so they can spend the money however they wish to."
Paul is a staff writer for Good Returns based in Wellington.
