Kiwibank has launched a home loan guarantee that promises the best trading bank deal available for the next six years. It is understood this is the first time a bank has promised such a deal.
The Kiwibank Home Loan Guarantee promises to refund the difference if a home loan customer would have been better off with another bank during the six-year period.
Kiwibank chief executive Sam Knowles said the guarantee has been launched so customers can be absolutely certain they are getting the best deal available, and that it will remain the best deal available. "We have been saying for some time now that the rates offered by the other banks are far too high. Now we are locking in our position as the bank that offers the best deal."
"We have been actively seeking home loan customers, but not through special discounts and cut price deals. Kiwibank has a long-term position as the leader in home loan rates."
The guarantee is available immediately on all home loans secured against property. If a Kiwibank customer compares the rates chosen (such as variable or fixed) over the six-year period and would have got a better deal elsewhere, Kiwibank will pay the difference in cash. Guarantees will also be provided to customers who already have home loans with Kiwibank. At the end of the six years, customers can carry out their own checks on whether they would have been better off elsewhere, have an independent check or get Kiwibank to carry out the comparison.
The deal applies to all major banks with nationwide networks operating in New Zealand.
