The Bank offers a variable rate of less than 2% “market leader” for new constructions | 1 NEWS

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ASB says it hopes to boost New Zealand’s housing supply by offering a floating interest rate of 1.79% “the highest in the market” for people who build a new home from scratch or buy it. a whole house and land.

Building (file photo). Source: Seven Sharp


The offer, which goes into effect today, is aimed at people who will be living in the home they are building and investors who are purchasing a new finished construction or building a new home.

Craig Sims, executive managing director of the bank’s retail banking, said ASB plans to issue around 1,000 loans over the next 12 months.

“We’re excited to offer this very high interest rate to encourage more customers to consider new building options,” Sims said.

“We have deliberately chosen to make the offer available to homeowners and investors in recognition of the role investors can play in making new, high quality homes available to Kiwi families. “

Customers can get a refund of $ 2,000 if they incorporate “green” solutions into their construction. The house should meet the requirements of a 6 Homestar listed house.

Last year, Heartland Bank won the crown for cheapest bid in the country, lowering its mortgage rate to less than 2%. It has since lowered its variable rate to 1.95% per annum.

By comparison, the major banks ANZ, BNZ, and Westpac all offer 2.25% one-year fixed-term rates as the cheapest rates for home loans.

Variable rates mean that the interest on a person’s home loan can fluctuate as interest rates go up and down.


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