ASB has followed its rivals with special deals for the homeowners in Christchurch's newly designated red zone, offering 2% off its floating home loan rate, bridging loans for new home or residential section buyers, and 4% per annum interest on Government payout money if it's placed in an ASB call account.
ASB said 2% off its current variable, or floating, home loan currently means 3.75% interest per annum. The offer is available until December 31 next year.
Barbara Chapman, ASB's managing director, said because some homeowners don't want to wait for the payout on their red zone house to be made, her bank will also offer bridging finance - including a six month repayment holiday.
"This will benefit those people wanting to purchase a new property now," Chapman said.
And for people who'd rather wait to buy, ASB will offer a 4% annual interest rate on government payout funds deposited into an ASB Christchurch Retail Call Account. This offer opens on June 30 and runs until December 31, 2012. See all bank call account rates here.
ASB's move means all the major banks have now announced special deals for red zone home owners since the Government last week offered to buy 5,100 houses in some of the Christchurch suburbs worst hit by earthquakes over the past 10 months. ANZ launched a 3.70% one-year mortgage rate, which is 2.04% below ANZ and sister bank the National Bank’s floating mortgage rate. Meanwhile, BNZ is offering a 2% discount on floating mortgages and an extra 2% interest on deposits and Westpac a 3.65% floating rate.
Kiwibank's also offering a 2% discount on its 5.65% floating home loan rate for a year from draw down. See all home loan rates here.
Chapman added that ASB's "previously announced concessions" would continue including no early repayment adjustments if fixed rate mortgages are repaid early, zero application fee for new home or residential property purchases, and NZ$500 towards professional fees related to the purchase.
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