Keep up to date with
news and rate changes

Different home loan strategies

Monday, August 27th 2012, 10:15PM

Banks are taking very different strategies when it comes to pricing home loans currently.

SBS and Kiwibank, for instance pitching for shorter term loans, notably SBS with its 4.99% six month rate.

Meanwhile TSB is pitching for business in the two year term. ASB stands out and is flat-lining with the same rate for terms of six months to two years. While not a market leader it is well positioned against the other big banks.

It may seem odd that Westpac is so high on its floating rate. This is its long-standing strategy of pricing its Choices revolving credit loan in this space. Although not shown on the graph Choices is sitting at 5.60% which is very competitive.

ANZ, which has won lots of business, doesn't look very competitive, but you have to remember these are carded rates and can be negotiated downwards.

When it comes to rates of more than two years there is much more consistency in pricing.

Comments from our readers

On 28 August 2012 at 1:40 pm Disgruntled ANZ client said:

ANZ are going hard out to win new business and ignoring existing clients - when our fixed rates expired and we enquired about the best rate they could offer the offered rate was insulting AND higher than other banks advertised rates. That combined with the less flexibility and increased charges due 1st October have prompted us to look around.

On 28 August 2012 at 3:38 pm Andy said:

ASB's carded rates may seem high, but you can negotiate with them and get a market leading rate in some instances... talk about sneaking in the back door. As usual - it pays (lots) to see a mortgage adviser! They will get you a good rate. ANZ who???

On 30 August 2012 at 4:57 pm Greg said:

Its pointless looking at the above rates...just see your mortgage broker (I use the guys at The Home Loan Shop) and they always get me the best rate whether I am getting a new loan or refixing.

On 3 October 2012 at 1:54 pm Barb said:

We used Think Mortgages and have had a stunningly good 1 year and two year rates negotiated on our behalf over the last year or two.

Sign In to add your comment

Copyright © 2019 Tarawera Publishing Limited. All Rights Reserved.