Leading bank shaves 2.76 percent off its floating rate for customers wanting to build

PHOTO: ANZ is offering a discounted floating rate of 1.68 percent for new build homes. Photo credit: Getty Images

A leading bank is offering the lowest mortgage rate across the market in a bid to make houses more affordable for Kiwis.

ANZ announced on Monday it’s offering a floating mortgage rate of 1.68 percent for new builds, shaving 2.76 percent off its standard floating mortgage rate (currently 4.44 percent), for up to 24 months.

It undercuts ASB’s Back My Build rate of 1.79 percent available for up to 36 months (three years), announced in May. It’s also lower than standard floating rates available in the market, including Simplicity’s 1.9 percent first home loan rate (available to Simplicity KiwiSaver members), and Heartland Bank’s 1.95 percent residential floating home loan rate.

ANZ’s managing director personal Ben Kelleher said homeownership is moving out of reach for many and the new rate supports supply, helping more Kiwis onto the property ladder.