ANZ announces 1.68% floating rate on new builds

ANZ Bank New Zealand (ANZ NZ) has announced a 1.68% floating rate on new builds, which is a 2.76% discount on the current floating rate, and the lowest rate in the market.

Called “Blueprint to Build” the discount will be available for 24 months on the standard floating rate for new builds, and builds that are already underway. The standard floating rate may move over time in line with market conditions.

ANZ NZ will contact its customers who are currently working through a build process to restructure them on to the low-rate offer should they wish to do so.

“As New Zealand’s largest lender the current housing market continues to concern us because home ownership is getting beyond many,” ANZ NZ Managing Director Personal Ben Kelleher said.

“New Zealand’s fundamental problem is one of supply and demand. Making it more affordable for people to fund new builds is one way we can contribute to increasing supply in the market.”

As part of the offer ANZ NZ will offer up to $3000 as a cash contribution for first home buyers and for those customers building a 6+ Homestar rated home. A 6+ Homestar rating or higher means the home will be easier and more cost effective to keep warm and healthy, and can be more environmentally sustainable than a typical new house built to New Zealand Building Code

“In December, ANZ NZ was the first bank to require a 40% deposit from residential property investors as a step to bring balance to the housing market,” Mr Kelleher said.

“This, combined with other banks following suit and Government initiatives, has resulted in fewer investors coming into the market. This has taken some froth out of the market.

“The ‘Blueprint to Build’ initiative is another step we’re taking to help more Kiwis on to the property ladder and to increase the stock of healthier homes.”

The offer will be available to ANZ customers effective 5 July 2021; eligibility criteria will apply.

Further information and terms and conditions is available at: https://www.anz.co.nz/promo/blueprint-to-build/

FREQUENTLY ASKED QUESTIONS

Who is eligible for the low rate offer?

This offer is available for customers building a new home or buying a property that’s in the process of being built by someone else. This includes first-home buyers, owner-occupiers, and investors.

Who can get the $3000 cash contribution?

The $3000 cash contribution is available for first-home buyers, as well as those building a 6+ Homestar rated home. A 6+ Homestar rating means the home will be easier and more cost-effective to keep warm and healthy, and can be more environmentally sustainable than a typical new house built to New Zealand Building Code.

Is there an establishment fee and does the cashback offer apply as actual cash in the account of up to $3000?

There is no establishment fee. If the customer is eligible for a cash contribution of $3,000 this will be paid into their account as part of the loan drawdown process.

Is the offer available for renovations?

No.  We have introduced Blueprint to Build to help stimulate an increase in housing stock. This offer is available for customers building a new home or buying a turnkey property.

How long is the rate available to the customer?

The offer will be available for 24 months on the standard floating rate for new builds, and builds that are already underway. The period starts when the loan is first drawn down. The standard floating rate may move over time in line with market conditions.

If it’s a floating rate, doesn’t that mean it can change?

The standard floating rate may move over time in line with market conditions. We’re always assessing our interest rates, but we’d like to make this record low rate available for as long as we can.

Can those who take the special rate move to a fixed rate at any time during the 24 months?

Yes. This is a floating rate and can be fixed at any time. Once fixed the customer cannot revert back to the floating rate.

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