BNZ says borrowers shifting debts to its HomeAdvantage credit card will now pay interest of just 1% for a year.
That's down from 5.95% previously.
Launched as recently as last November, the HomeAdvantage card opened a new front in the battle for mortgage market share coming as banks were bedding in the Reserve Bank restrictions on high loan-to-value ratio (LVR) mortgages.
To be eligible for the HomeAdvantage card, customers must have any type of BNZ home loan with an LVR of no more than 80%, plus a BNZ transaction account that the customer's main income is paid into.
People who borrow via their HomeAdvantage card pay interest of 5.99%, which is the same interest rate as BNZ's standard variable home loan rate. The interest rate for cash advances is 15.95%. See David Chaston's review of HomeAdvantage here.
Soon after BNZ's HomeAdvantage launch ASB unveiled a five month interest free credit card offer on all purchases.
BNZ has also reduced the balance transfer rate on all its other credit cards, bar its "Business First Visa" card to 3.99% from 8.95% for a 12 month period, which is extended from six months previously. The 1% balance transfer rate on the Home Advantage MasterCard is also for one year. The Business First rate is 4.99% for six months.
Balance transfer rates on credit cards at the other major banks range from Kiwibank's 2.99% for six months to ANZ'S 2.99% for 12 months, and Westpac's 5.95% permanent rate. ASB doesn't offer balance transfer rates. Standard interest rates on bank credit card purchases are close to 20% with "low rate" bank cards charging around 13% to 14%. See all credit card details and interest rates compared here.
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