Affordable rates for low-equity borrowers
In a move to help first-home buyers and low-equity borrowers, BNZ has announced a significant overhaul of its home loan offerings.
The bank is shifting to a single set of fixed interest rates, eliminating the previous 0.60% rate difference between its classic and standard loan structures. This simplifies the borrowing process and lowers costs for customers with less than 20% equity.
Lower borrowing costs for low equity customers
New borrowers with less than 20% equity will now benefit from the lower standard fixed interest rates, reducing their overall borrowing costs. Low equity premiums will still apply, but the changes will make homeownership more affordable.
“The simpler home loan rates mean that all customers will be able to access our best home loan rates, even if they don’t have 20% equity,” said Karna Luke (pictured above), BNZ executive of customer products and services.
Savings for first-time buyers
The new rates deliver significant savings. For example, a first-home buyer borrowing $500,000 with a 15% deposit could save $78 per fortnight, amounting to over $2,000 in savings on a one-year fixed term.
“These changes reflect our commitment to growing the long-term financial wellbeing of all New Zealanders,” Luke said.
New rates now in effect
The new pricing structure is now available for new customers and will apply to existing low equity customers when they next refix their home loan.
BNZ’s streamlined offering aims to make home loans more accessible and support Kiwis in achieving their homeownership dreams.
“By making home loans simpler, we aim to help more Kiwis to achieve their homeownership aspirations,” Luke said.
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