by Paul McBeth
Slugged the Rate Breaker, Wizard's new home loan has a floating rate of 7.79 per cent that should leave little doubt these guys are here to play hard ball.
Wizard's Executive Chairman Mark Bouris, in launching Rate Breaker, said it was for new borrowers wanting a chance to get into their first home or for the experienced shopper focussed on rate. He said that Wizard was responding to consumer demand by introducing new products quickly into the New Zealand market and that further products would be added in the near future.
Floating rates offered by the main trading banks are currently around 8.50 per cent, while only a smattering of lenders dip below the 8 per cent mark.
The Rate Breaker is for mortgages on owner-occupied properties and has a $500 front-end fee. Wizard's Smart Choice home loan has a wider application, rates of 8.29 per cent (floating) and 8.10 per cent (fixed) and no front-end fee.
Australian-based mortgage originator Wizard opened for business here three months ago. Bouris said its partnership through loan provider Mortgage Asset Management with financial services giant ABN-AMRO was an important factor in Wizard's ability to offer the most competitive rates such as Rate Breaker.