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Mortgages

Mortgage Rates Daily Commentary
Thursday 11 July 2024  Add your comment
One bank cuts home loan rates

Westpac has cut three of its home loan terms between 10 and 25 basis points.

The biggest cut is to its one-year rate which is down to 6.89% and 7.49% for its Special and Standard rates respectively.

To see how it stacks up against other lenders check our table here where we have sorted on lowest to highest one-year rate.

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AMP’s affordable home loan repayment cover

AMP has launched a new, flexible home loan repayment insurance product.

Tuesday, May 11th 1999, 12:00AM

by Paul McBeth

With interest rates as low as they are, first time house buyers are being tempted away from renting and into their own homes. Renovations and extensions are also much more affordable, making the home loan market a hive of activity.

But interest repayments aren’t the only thing home buyers and renovators should consider when crunching the numbers. There’s always the very real possibility that through redundancy, bankruptcy, illness or disability, the home loan that seemed so affordable may suddenly prove impossible to repay.

That’s where a new product from AMP can help. AMP Home Loan Cover gives customers the assurance that no matter what happens, they will be able to pay off their home loan.

Wider, more flexible cover


AMP’s product takes a wider, more flexible view than traditional home-loan repayment cover. Life cover can be purchased for up to twice the value of the loan, payable on death of the policy-owner. The cover does not have to be assigned to the home loan provider. Two lives can be covered, with a discounted premium on the second life.

Furthermore, this cover amount is not tied to the home loan, and does not reduce as the outstanding loan reduces. Instead the life cover remains suitable for other purposes. This means that if you shift house, change lenders or even pay off your loan, your life cover doesn’t have to stop. (Alternatively, the customer can opt to reduce, or increase their cover during the life of the loan.)

Protects against redundancy, illness
Loan repayment protection can also be taken against redundancy, bankruptcy or disablement through illness or injury. Here cover can be up to 120% of the monthly home loan instalment, allowing flexibility if the loan interest rate changes as well as some additional income when the client needs it most. Not only are the home loan payments covered, the premium on the policy is waived for the period of the benefit.

"This provides a simple, effective risk cover that maintains as much flexibility as possible for the customer," says AMP product specialist Brendan Ives.

Application process simple
The application process is also simple. There are eight standard questions on the life cover and three each for the additional rider benefits covering bankruptcy, redundancy and disablement.

And because there is no policy fee, customers are not disadvantaged by taking a small amount of cover.

First time buyers, self employed, young families

AMP expects demand for its Home Loan Cover from first-time buyers, as they are less likely to own any life insurance and typically have low equity in their new homes. Self employed people and homeowners with young families have also shown interest in the product.

"We’ve found that people are willing to spend, say, an additional $50 a month to ensure peace of mind on their loan," says Ives.

"Providing insurance cover for a home loan is important for the client and adds a long-term product to the client/adviser relationship."

Available through AMP Advisers and accredited brokers
AMP’s Home Loan Cover is available from AMP’s nationwide network of Advisers or through accredited brokers. You do not need to have your home loan with AMP in order to take this cover.

For more information on this product, talk to your AMP Adviser or your broker, or call Brendan Ives at AMP on 04-498 8000.
Special advertising feature

Paul is a staff writer for Good Returns based in Wellington.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 ▼7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - ▼6.89 6.75 6.39
Median 8.64 7.14 6.82 6.65

Last updated: 11 July 2024 1:26pm

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