BNZ campaign putting pressure on margins

BNZ’s campaign is heavily focused on its two-year fixed homeloan rate at 6.89% and uses the slogan: "We’ve cut out brokers to give you a great home loan deal."

The other four major banks’ published two-year fixed rates are between 7.3% and 7.4%.

"It’s stripping out major value. The margins we’re seeing now are some of the toughest we’ve seen," Hayr told the Plan New Zealand annual conference earlier this month.

It is a very long time since a major bank has so aggressively tried to undercut its competitors and the other banks are being forced to cut their profit margins too, he says.

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