The Co-operative Bank has rolled out a three-year special home loan rate of 5.49%. It is available to borrowers with at least 25% equity in the property.
Their standard three-year fixed rate is unchanged at 5.75%.
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The bank is also planning to withdraw its discounted floating rate which offers customers a 0.5% discount on the floating interest rate for the first 12 months of their loan term. However, borrowers have to have a minimum loan term of three years.
At the end of the 12 month period, the loan automatically reverts to the standard floating rate.
The product has been around for some time but the bank feels the concept has now passed its purpose as many borrowers negotiate down their floating rate.
Push into Auckland
General manager customer banking David Cunningham says the bank is starting a big push into the Auckland market. Currently it has seven branches in New Zealand’s biggest city and is looking to add another half dozen over the next few years.
As part of this push it has also appointed its first mobile managers. They started this week and will deal with personal lending as well as home finance.
Cunningham says mobile managers work well in the bigger cities like Auckland, Wellington and Christchurch as it is harder to get to a branch than in smaller cities.
One of the new mobile managers is a former branch manager and the other came from another bank.
