The move will allow low-equity borrowers to access lower rates
ASB is combining its two fixed home loan rate cards into one, a move it says will “put thousands dollars back into the pockets of first home buyers” with mortgages over 80% LVR.
ASB had previously offered special rates for customers with 20% equity and standard rates for all other customers. The new rate card will allow all customers to access the lower rates, no matter their levels of equity.
General manager for retail banking Craig Sims says the move aims to help more Kiwis into home ownership, noting that ASB will be the first of the main banks to launch a single rate card offer.
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“The home ownership journey is an incredibly exciting one, but we know it can also be stressful for many of our customers,” Sims said.
“The move to a single rate card is going to help make it simpler and easier. More importantly however, this change is going to save our low equity first home buyers thousands of dollars each over the course of their home loan repayments, which will make a significant difference to their financial wellbeing.”
ASB has launched a number of initiatives to support its home loan customers in recent months, including cutting home loan rates across the board and launching ASB Compassionate Care, a free benefit which covers around 12 months in interest costs if a borrower on an eligible home loan passes away.
Sims says the single rate card will remove higher rates for lower equity customers. The chance is effective from 16 July 2020.
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“This is going to help our first home buyers in particular, as they often have lower equity, and so face higher rates. This will give them a leg up and hopefully help more New Zealanders into home ownership,” Sims said.
“We have a really important part to play in people’s home ownership journey and this is going to put money back into the pockets of our customers, which is something we’re really proud of.”
