Huge surge in borrowers chasing big cash back offers

Mortgage advisers’ phones have been ringing off the hook as home loan borrowers chase banks’ 1.5% cash back offer.

ANZ ignited the mortgage wars as the first bank to offer the incentive until mid-December. The other main banks have followed.

“It is the best news clients have received before Christmas. It is straight cash into their back pocket,” Nathan Miglani, Squirrel Mortgages Christchurch managing adviser, says.

Miglani has been in the mortgage advice business for 15 years and says it is the first time he has seen a bank compete at this level. “It is aggressive and generous – about twice as much as usually offered. Anything above 1% is unusual. The mortgage wars have definitely heated up.”