NZ’s largest mortgage lender slashes interest rates on new builds

ANZ bank revealed to 1 NEWS it will introduce a floating rate to borrowers who build a new home, or are in the process of building one, of 1.68%.

“This is our way of helping to increase the supply of houses to make it cheaper for customers who are looking to build new houses across the country,” ANZ’s Ben Kelleher told 1 NEWS.

Despite being on offer for two years, it’s floating, which means it may rise as other interest rates rise.

Although fixed rates have been low, floating rates have remained much higher.

Economist Cameron Bagrie says it’s about time there’s more competition in the market and moves to bring the “eyewatering” floating rates down.