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SBS Bank launches a comprehensive home loan offer for first home buyers featuring a 1.99% rate fixed for one year, boosted by four other incentives

SBS Bank launches a comprehensive home loan offer for first home buyers featuring a 1.99% rate fixed for one year, boosted by four other incentives

Challenger bank SBS has launched its version of a first home buyer incentive scheme, one that is more comprehensive than any other in the market.

SBS Bank's offer includes five incentives:

- a home loan rate of 1.99% fixed for 1 year,

- a $2,000 cash incentive (which you might need for lawyers fees, moving costs, etc.),

- $1,000 towards a house and contents insurance policy with its own SBS Insurance company

- $1,000 towards a KiwiSaver account with its own LifeSaver scheme,

- and an SBS Visa Credit Card with up to $2,000 interest free for 24 months.

To access these benefits, SBS Bank says you:

- need to be a first home buyer (or a person in the equivalent position of a first home buyer);
- will need to be acquiring either an existing home, new build or undertaking construction;
- will need to occupy the property you are purchasing;
- will not be able to own any additional property;
- will need to have a minimum of 5% equity in the property for First Home Loans or 20% equity for Residential Lending;
- qualify for a First Home Loan or Residential Lending with SBS Bank.
- will need to have your loan application approved and have received a Letter of Offer
- will need to have your loan drawn within 90 days of our approval of your loan application

A 1% Kāinga Ora (formerly HNZC) premium fee applies.

The Cooperative Bank was the first to launch a first home buyer rate, which they did at 1.99% first for one year, and have subsequently raised to 2.29% fixed for one year.

Over the past week, ANZ has tweaked some of its rates, and today HSBC has cut all its fixed rates. But the HSBC cuts come just 14 days after they had raised them sharply on July 23, 2021.


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One useful way to make sense of these changed home loan rates is to use our full-function mortgage calculators. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. Break fees should be minimal in a rising market.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Update: This table has been updated with a Kiwibank rate rise.

Fixed, below 80% LVR 6 mths   1 yr   18 mth  2 yrs   3 yrs  4 yrs  5 yrs 
as at August 6, 2021 % % % % % % %
               
ANZ 3.39 2.55
+0.05
2.74
 
2.95
+0.05
3.15

-0.09
3.99 4.39
ASB 3.29 2.55 2.79 2.95 3.29 3.69 3.99
3.29 2.55 2.79 2.95 3.25 3.69 3.99
Kiwibank 3.55 2.49   2.79

+0.30
3.29 3.59 3.89
Westpac 3.29 2.55 2.75 2.89 3.29 3.49 3.79
               
Bank of China  3.45 2.39 2.59 2.79 2.99 3.39 3.69
China Construction Bank 2.65 2.65 2.65 2.85 3.25 3.55 3.99
Co-operative Bank (*FHB only) 2.49 2.29* 2.69 2.89 3.19 3.49 3.79
Heartland Bank   2.15   2.45 2.65    
HSBC 2.89

-0.30
2.40

-0.39
2.65

-0.24
2.79

-0.20
3.05

-0.24
3.39

-0.10
3.69

-0.10
ICBC  2.49 2.29 2.49 2.69 2.99 3.29 3.59
  (*FHB only)SBS Bank 2.79 1.99*

-0.40
2.59 2.79 2.99 3.39 3.69
 [incl Price Match Promise]  2.89 2.50 2.74 2.89 3.24 3.49 3.79

Fixed mortgage rates

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Daily swap rates

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17 Comments

Wow, that's a $6,772 - $8,512 dollars worth of kick backs from SBS!

It should be the best in the market right now.

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Looks nice, but there's some devil in the detail though, it seems. To get a loan over 80% (which MANY FHB are according to RBNZ data) you have to qualify for their 'First Home Loan', which charges an upfront fee of 1% - I guess if you add that to the loan too, that's quite a lot extra to pay over 30 years. There are also income caps- individual under $95k, joint under $150k.. so that could challenge some FHBs on loan size and income limits etc. Wonder how they rollover the loan after the 12 months?

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Keep that fire burning... only a few weeks to spring and another push up for housing prices.

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Advertorial?

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What happened again in the States when those loans came off their low teaser rates around 06/07?

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Wrong comparison.

There's no NINJA loans in NZ, mortgages are full recourse and all lending are stress tested.

Worthy of at least an A or AA rating.

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So you mean to say if interest rates rise by 2-3%. There will no issue in the market?

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Time passes quickly and teaser rates expire leaving the buyer knee deep in cashflow problems, plus this sentence will bring you many sleepless nights if you take it up:

""will need to have a minimum of 5% equity in the property for First Home Loans""

When the market dips 10% (which after a sudden 30% jump is more than likely) you are left 5% underwater on your equity and knee deep in the debt with no way out.

Bankers are fair weather friends, just see what happens when the winds of change come calling.

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I think 10% is a stretch.

Retired-Poppy might disagree though.

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Wait, you dont think values can drop just 10% from peak?? Given the steep ascent, not so sure that is off the cards.
Might depend on source of 'value' -- I know those online valuer things move a bit. My property down 7% mid June (peak) till now, after climbing 10% from April to June....sample size of 1, I know.

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When did Larry Page become a resident?
Has he bought property here
If and when he does he will be a FHB

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@two otherguys,

You've made me laugh, great point! This is why rules can't change the fundamentals.

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SBS performing a greater service to the FHB, than this Labour Govt under Jacinda Ardern. Let's hope other banks come to the party.

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I wonder what the FMA will say about the lack of responsible lending and investing codes implicit in this offer….. then again if you look at the track history of some of the directors of SBS they never really have worried to much about complying with the law, and the expectations of regulators, be they prudential, markets or AML.

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no wonder people want to get on the ladder!

two grand cash, insurance,a grand in kiwi saver incase it all goes tits up and a credit card with a two grand limit...

and only a fifty grand deposit needed to buy a million dollar mansion!

fixed for one year and then flexible for twenty nine...then you own it!

What could go wrong?

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If I was getting a mortgage, I would want some certainty, and be able to lock in rates for the term of the mortgage like they can in the US. Eg a 30 year mortgage at 3%?

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