PHOTO: FILE
In a surprising move, while major banks focus on offering 4.99% for buyers fixing for two years, one smaller player has entered the market with a significantly lower rate. SBS is now running a special offer of just 4.39% for one year for first-home buyers with a 5% deposit.
This incredible deal is exclusively for new homebuyers and cannot be used by existing mortgage holders.
Glen McLeod, head of Link Advisory, highlighted additional benefits with the SBS offer, including a $2000 cashback, $1000 for SBS insurance, and a $1000 top-up to KiwiSaver for buyers with the SBS scheme.
McLeod noted that while there are conditions borrowers need to be aware of, such as staying with SBS for a set period, the offer is worth considering. “SBS seems to be trying hard to compete for first-home buyers,” he said.
The competitive edge provided by SBS is essential in the current market, as other major banks have not yet matched this offer. Other banks are advertising rates between 5.19% at Kiwibank and 5.49% at Westpac for one year.
McLeod emphasized the complexity of giving advice in the current environment. While the Reserve Bank has indicated the official cash rate might fall further, international pressures are pushing rates up.
He suggested that it might be time for borrowers to consider fixing for longer terms if it suits their circumstances.