Westpac may be advertising a floating home loan rate of 5.60%, but if you're a member of the New Zealand Institute of Chartered Accountants (NZICA), the bank will give you 5%.
As "banking privilege partner" to the NZICA, Westpac is offering the accounting body's members 5%, noting its carded rate is 5.6%.
"Being NZICA's banking privilege partner is not something we take for granted. That's why we wanted to make sure you knew about these great deals we're offering on home loans," Westpac said in an email to NZICA members.
The email goes on to note the 4.99% one-year fixed special Westpac launched earlier this month, for which borrowers must have a minimum of 20% equity in their property. This is 50 basis points below Westpac's standard fixed, one-year mortgage. And the bank also points to a 5% floating, or variable, rate encouraging recipients to call Westpac with their NZICA ID at hand. The 5% floating offer doesn't specify minimum equity in the property but the small print does note establishment and low equity fees may apply.
Due to strong competition among the banks for home loan customers in recent months banks' have been significantly undercutting their advertised, or carded, rates for selected customers and even paying break fees to help win business from customers on fixed-term loans with rival banks.
Aside from Westpac, the NZICA's privilege partners include BMW, American Express, Xero, plus insurers Vero, Fidelity Life, Crombie Lockwood and Accuro Health Insurance.
See all banks' advertised home loan rates here.
32 Comments
Do they "surprise" all the members of professional guilds in this manner in the hope the "little things" might be overlooked or omitted?
I am certain Treasury officials are exempt even though Westpac is the Government's bank
I am equally sure the IRD should mosey on down to the odd partnership to check out if this is considered "payment in kind".
I think if you have a lot of equity then banks will always cut a deal. Our mortgage is only $200K so we probably have about 65 - 70% equity based on the GV or RV. Another guy at work brought a similar valued house, but only had 10% equity - he got 20 points off the carded rates and had to pay that low equity insurance of $3K.
It's probably a tactic on the part of Westpac Gareth, I mean the NZICA members can hardly advocate paying down debt while themselves linning up for discounted Mortgages... oh and probably Mortgage Brokers...I think may crack a few deals for themselves in lieu of transaction percentages put the Banks way.
I'd suggest there's some arrangements with professional bodies with discounts of 100 - 150 pts off floating for partners of the firms. Requires all the firms business including the often sizable client trust account deposits. Most if not all the banks will have these types of packages.
Bravo to the Institute for front-footing discounts and special deals for their members. This isn't any different to, say, Southern Cross using its massive client base and outreach to obtain deals for members.
It's a win-win-win for the institue, members, and Westpac.
Maybe if the trade unions did more like this, then their membership wouldn't be falling through the floor...
I guess they are entitled to a better deal than a member of the public and of course accountants would never allow the line between a favour and duty to be blurred.
There are at least 3 banks I am aware of who will go 5% or lower floating...and you dont need to be a member of NZICA. If anything the NZICA deal is outdated and the rate should be reset lower to reflect where the market has gone in the last 12 months.
I think there is a realisation among banks that they have to price a bit more according to risk if they want to secure (or keep) business, and if somebody has a lower LVR and good solid income streams they can negotiate better deals...and if you are in that position its great to have a bit of sport with the banks :-)
You might think so - others might be a little more cautious when thought is given to how the professional recipient of gifts might be expected to reciprocate given he/she could be undertaking a paid for regulatory investigation of the gifting party.
No gifts,no favours, no discounts seems about right to me in such relationships.
So the fact that less than 200 accountants out of 20+(?) thousand may be in the position you are talking about NZICA should not enter into these arrangements. What a load of bollocks.
1. Given the fees that these accountants earn they don't need to hold a mortgage.
2. Most of the large accounting firms negotiate better deals themselves for the partners (not staff), now there is a potential conflict and nothing to do with this offer.
Identify your target, don't waste your ammo on shadows.
This is not a conspiracy theory but fact according to comments in this thread. As a significant bank depositor in the past I am always looking to maximise my interest. These admissions give me the ammo to negotiate a better deal. Don't you just love getting unearned money for nothing knowing others work to pay your income.
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