BNZ claims the lowest floating home loan rate

www.goodreturns.co.nz

Thursday 17th September 2009

The Bank of New Zealand has fired its next shot in the battle for the lowest floating rate home loan, announcing cuts of up to 31 basis points on some of its loans.

It is claiming the lowest variable rate in the market, by taking 26 points off its TotalMoney rate, setting at it 5.59%.

This is 16 points lower than what ASB Bank is offering. However the two loan products are not directly comparable as TotalMoney is an offset account.

BNZ's other home loan products (GlobalPlus, Rapid Repay, Standard and FlyBuys) are now all priced at 5.99%.

This puts them well below comparable loans from other major banks.

However, according to www.mortgagerates.co.nz, a number of other lenders including BankDirect, Kiwibank, NZ Home Loans, Silver Fern, Sovereign and PSIS have cheaper floating rates.

BNZ director retail Chris Bayliss says: "Over the past year we've reduced our variable loan rates by 4.90% to ensure that we offer New Zealanders competitive rates which will enable them to reduce the principle on their loan at a quicker rate."

Check and see how BNZ compares here

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