KiwiSaver scheme funding new cheap floating rate start up

A new fintech is offering residential floating mortgages funded by KiwiSaver scheme Generate at rates well below the major banks. 

Believed to be one of the few New Zealand mortgage platforms using KiwiSaver funds to finance mortgages, Indi (The Independent Mortgage Company) is offering a floating rate of 5.19% compared to the average major bank rate of 6.46%.

Generate, which is providing the funding, has 165,000 KiwiSaver members, nine products and $6.6 billion under management.

Unlike the big banks, Indi offers only floating rate mortgages. It doesn’t have fixed rates, revolving credit or offset loans.