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Non-bank floating rates fall

Non-bank variable loans will become an increasingly attractive option to investors and first home buyers turned away by the banks, according to Avanti Finance. 

Friday, February 12th 2021, 8:48AM

After the Reserve Bank imposed a 40% deposit requirement on investors earlier this week, more clients are expected to be turned away by their bank.

Avanti, which slashed its near-prime variable rate to 3.95% this week, believes non-bank floating rates will offer a useful solution for advisers and clients. 

Avanti's head of distribution Stephen Massey said a wide range of good quality borrowers are being rejected in the current climate.

He said a wide mix of customers were seeking non-bank options.

"There's a diverse range of customers finding it difficult to get a loan. A lot of it is related to life events, but in the investor space, there are people with good banking relationships that have reached a point where their bank is not prepared to help with new transactions.

"It's clear that change is coming for investors," he said. "And our role is to support customers just outside of the banks' criteria. We're trying to support advisers with an alternative as finely priced as possible."

Some first home buyers had also found it tough, Massey said.

"Banks are uncomfortable with low deposit first home buyers. They are looking at people taking $30,000 from KiwiSaver and $10,000 from mum and dad, and want to see more 'genuine' savings," he said. 

Avanti's 3.95% variable rate makes it cheaper than the big four.

While Kiwibank has slashed its floating rate to 3.4%, the big four have not budged on variable rates since the official cash rate plummeted last year. 

Tags: Avanti floating rate mortgages Lending non-bank lenders

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.19 2.59 2.99
ANZ 4.44 2.79 3.19 3.59
ANZ Special - 2.19 2.59 2.99
ASB Back My Build 1.79 - - -
ASB Bank 4.45 2.19 2.59 2.99
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▼2.19 2.55 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼2.79 3.15 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 1.95 1.85 2.35 2.45
Heretaunga Building Society 4.99 3.80 3.90 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 ▼2.15 2.35 ▲2.75
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.04 3.40 3.84
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.19 2.55 2.99
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.69 2.99 3.29
SBS Bank Special - 2.19 2.49 2.79
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▼1.99 - -
The Co-operative Bank - Owner Occ 4.40 ▼2.19 2.59 ▲2.99
The Co-operative Bank - Standard 4.40 ▼2.69 3.09 ▲3.49
TSB Bank 5.34 2.99 3.35 3.79
TSB Special 4.54 2.19 2.55 2.99
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼2.79 3.19 3.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.19 2.59 2.99
Median 4.55 2.68 2.99 2.99

Last updated: 22 June 2021 9:57am

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