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Simplicity launches 2.5% floating rate

KiwiSaver provider Simplicity has launched a 2.5% floating rate mortgage for first home buyers, becoming the cheapest home loan in New Zealand.

Thursday, May 28th 2020, 8:01AM

The KiwiSaver and investment specialist has cut 30 basis points from its old offer at 2.8%. 

Simplicity managing director Sam Stubbs said banks were not doing enough to pass on cuts. 

“Even in this environment, banks are still taking ordinary hard working Kiwis for a ride," Stubbs said. "We can do better than that, so that’s what we’re doing."

“Our new floating rate is at least 1.5% lower than the banks, and the lowest rate anywhere," he added.  It saves someone with a $500,000 mortgage from $30-100 a week in interest, which adds up to thousands over the years."

The offer is only available to Simplicity members. The firm will not charge borrowers for early repayments.

"We want them to get out of debt as fast as possible, not tie them down for maximum financial as the banks currently do,” Stubbs added.

Simplicity will lend up to 80% LVR, but repayments must not be more than 30% of after-tax income. The firm said its criteria was stricter than the banks as it lent money with KiwiSaver funds.

The investment firm launched its home loan offering in October, and provides loans through a ballot system.  More than 180 names have been drawn so far, with $30m of pre-approvals issued.

 

Tags: KiwiSaver Sorted

« New record low mortgage rate at 2.8%Financial Markets Authority takes ANZ to court »

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 3.85
ANZ Special - 2.65 2.75 3.35
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 ▼3.19 ▼3.49
SBS Bank Special - 2.79 ▼2.69 ▼2.99
The Co-operative Bank - Owner Occ 4.40 2.79 2.79 3.39
The Co-operative Bank - Standard 4.40 3.29 3.29 3.89
TSB Bank 5.34 3.59 3.49 3.79
TSB Special 4.54 ▼2.65 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.65 2.69 2.79
Median 4.55 3.22 3.22 3.44

Last updated: 3 July 2020 8:15am

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