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Cash backs creep up

Cash back offers from the major banks continue to fluctuate in the wake of Covid-19, but two banks have lifted their offers in recent weeks. 

Monday, June 15th 2020, 8:00AM

Advisers report that ANZ and Westpac have lifted cash back offers back to .6% after cutting them during the lockdown. 

In mid-April, cash-back offers had dropped as low as .4% at banks including Westpac and BNZ, as banks tightened up in the face of the pandemic. 

One adviser told TMM Online that conditions had begun to improve for borrowers in recent weeks: "During lock-down some banks dropped cash backs completely, with some at 0.3%. They're now back up to 0.6%," the adviser said. 

Craig Pope, of Pope & Co Mortgages said the market was still "inconsistent at the moment" and has seen cash backs as low as .4% and .5%.

He said banks were prepared to match other offers. "ANZ might be the better at the moment around .5-.60%," he added. 

Hamish Patel, of Mortgages Online, said the ever-changing market was a great opportunity for advisers.

"The golden age for brokers has arrived," he said. "The real value proposition will now become more obvious. There is now more variance than ever between different banks, their lending criteria and pricing.The consumer would be selling themselves short of they assumed that their own bank was a reflection of the entire market."

The huge variation in cash-back policies comes as lenders rejig their lending criteria post-Covid-19. Some banks, like Kiwibank, are offering investors up to 80% LVR, while the big four banks have stuck to tight internal credit limits. 

As cash backs and LVR limits continue to fluctuate, banks are also fighting a price war on interest rates. 

Kiwibank fired the latest shots last week, cutting floating rates by 1%, putting them nearly 1% ahead of their big four rivals. 

Tags: ANZ Westpac

« Kiwibank cuts 1% from floating rates, rivals cut fixed ratesStrong comeback could affect OCR outlook »

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Mortgage Rates Table

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 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
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 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 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 - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

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