About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, September 20th, 12:24PM
rss
Latest Headlines

Could you get a better deal from your bank?

Property owners are being reminded that it’s worth checking to see if they qualify for an interest rate special from their banks.

Thursday, November 27th 2014, 12:00AM

by Susan Edmunds

The big banks are offering advertised specials to borrowers with more than 20% deposit.

The release of new CVs in Auckland shows average property value increases of 29% across the city from 2011-2014.

That means even those who bought property with a small deposit in those years will now likely have equity of at least 20%, entitling them to better interest rate deals, as well as added sweeteners that are on offer, such as big-screen TVs and Playstations.

The difference could be significant: If you're paying a standard rate of 6.39% on a $500,000 loan you'll fork out $3695 a month. If you can qualify for the special 5.75%, you will spend only $3510.

At Westpac and BNZ, low-equity borrowers are charged a premium on top of standard interest rates, which can add up to an extra 1.75 percentage points.

If borrowers can show their equity has grown, the margin can be lifted. Westpac refused to say how many customers were paying low-equity margins or whether they would be contacted to assess that. BNZ said customers would need a “credit event” to reclassify their LVR position and have their low-equity margin removed. “LVR is reassessed when a credit event occurs. A credit event is typically an application for or approval of new or additional lending.”

Broker Kris Pedersen said all the banks were fighting hard for business. “You get what’s going out publicly in their marketing and then behind the scenes they are extremely aggressive, fighting over business.”

Another, Glen McLeod, said he had been able to negotiate a $8000 cash contribution, 1% off floating rates for big loans, 0.8% off floating rates for loans about $750,000 for customers.

Some customers had been asked if they would like to take the chance to borrow more money.

A BNZ spokeswoman said the CV increase would present opportunities for some customers to use their increased equity to renovate or make improvements.

ANZ sent customers a letter saying: “Because you’re making good progress repaying your ANZ Home Loan, you can choose to get a little extra if you need it.”

They were then offered the option of a home loan top up or a reduction in mortgage payments.

A spokesman said: “From time to time we contact customers whose repayments are ahead of schedule, or who have built up equity, with new lending options specific to their situation.”

« Lending nears $5b as households pay down mortgages'Power to the consumers' »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.54 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com