ASB says it'll charge borrowers no interest for a month on its new three year fixed-term home loan rate "special" of 6.29%.
The bank says this offer is in celebration of its Like Loan promotional campaign, through which ASB's Facebook friends help lower the interest rate for a customer.
“Last night many thousands of Kiwis participated in Like Loan to drive the winning interest rate down to zero percent on a three-year fixed home loan for one lucky winner,” Shaun Drylie, ASB’s general manager of products and strategy, said in a statement.
“We are excited to be able to share the success of the Like Loan campaign and offer the opportunity for an unprecedented zero percent interest rate for one month on new lending on a three year fixed term special of 6.29%."
This rate trims 31 basis points from ASB's three year fixed rate. ASB's offer is available to new home lending of $100,000 or more where there is a minimum of 20% equity in the property. The offer will end on April 17.
ASB also says an establishment fee of $400 may apply, borrowers must have a main transaction account with ASB where their salary or wages is credited, and an ASB credit card.
Among the other banks, BNZ also has a 6.29% carded three year home loan rate, and SBS Bank has 6.20%, although this is only for borrowers with a deposit or equity of at least 20%. See all advertised, or carded, bank home loan rates here.
"Every Monday for the last three weeks, Facebook users have had the opportunity to win a special home loan rate determined by how many people ‘liked’ the rate through a dedicated Facebook app between 6pm and 10pm," Drylie said.
"In a ground-breaking move, the real-time decreasing rate on Facebook was integrated live into TV adverts on TVNZ channels TV One and TV2 throughout the evening – no other brand in New Zealand has used this innovation before. The 2013 campaign was recently awarded Gold in the financial services category at the New Zealand Direct Marketing Awards and was awarded one Gold and two Silvers at the AXIS Awards."
7 Comments
Just as Olly Newland predicted.
The first shots in the "mortgage war" have started already..
http://www.interest.co.nz/property/69056/property-investor-olly-newland…
Fixing long term may not be the answer just yet .
Hold your fire until you see the whites of their eyes
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BigDaddy aka Olly Newland, this is just the first increase of possibly several more to come in the next year or so. Hold onto your seatbelts everyone who is over geared. Some of you might just wish you had never listened to people like Olly. Remember just how much of other people's money he lost with the Landmark fiasco. Just as well he has the means to pay all those people back now.
I think there's a reasonable possibility of the arse falling out fo the New Zealand economy and rates being cut again. Apart from "confidence" surveys it seems to be bad news rising.
A quick scan of the NZ Herald business pages:
1. The usual stories of embezzelling by directors of finance companies
2. The great NZ foreign sell off - power companies, land, commercial property whatever...
3. Small/Medium businesses struggling - Hallenstein profit down 40pc, Superyacht builder hits doldrums, etc
4. And of course a story or two about dotcom.
I don't buy the Rockstar economy bit. Its a debt-fuelled rocket burning brightly for sure, but China woes are real and if you strip away property activity, what's left? The cows. I hope Daisy keeps producing those golden pints or we are all heading to the knackers yard.
Not very scientific but it seems to me there is a reasonable chance of rate rises coming to an end in 6 months or so...
Hmmm, no actually I think they dont believe drops are possible. What they are doing is chasing the very few FHB's left in the game.
I think the LVR is biting hard, harder than the RB "apparantly" intended. Either that or the level was extremely well picked...just hope it doesnt tip the market into a drop.
regards
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