Bank received applications for more than $2 billion in lending
ASB has been flooded with mortgage applications a month after it launched its special Back My Build home loan rate, surpassing $2 billion in lending to support the construction of 3,000 new homes.
The Back My Build home loan offers a 1.79% three-year variable interest rate for customers building a new home or purchasing a home and land package. ASB launched the special home loan rate to boost housing supply and support Kiwis into homeownership.
ASB general manager direct channels Glen Martin said demand for Back My Build had exceeded expectations.
“Initially, our goal was to approve 1,000 Back My Build home loans over the first year, so to receive 3,000 applications in just over a month is phenomenal and testament to the huge demand for more affordable property,” Martin said in a statement.
“Housing supply continues to be a huge issue for New Zealand, so we’re really proud to be helping to address this and see more Kiwi families achieve their homeownership dreams.”
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The ASB Back My Build variable rate is available for up to three years from when the customer makes their first draw-down.
“While we are very focused on increasing the supply of homes, it’s also important to encourage environmentally sustainable housing,” Martin said.
“We partnered with the New Zealand Green Building Council to support this by reimbursing customers $2,000 if they can prove their intent to build a 6 Homestar rated home (or higher), and we’re pleased with the amount of interest we’ve had in taking up this offer.
“As a bank lender, we can really play a big part in helping solve the housing supply issue by making it easier for Kiwis to choose new build homes, and we’re definitely seeing the benefits of this already.”
