The method in Superbank's home-loan madness

Monday 1 November 2004

Superbank is taking on the big boys again. Rob Stock looks at a small bank's mortgage innovation.

By The Landlord

One niche bank is about to turn traditional mortgage wisdom on its head.

Superbank will tomorrow unveil a floating home loan rate way below its competitors, reversing what it sees as madness in the home-loan market.

What's more, the rate of 7.49 per cent will be guaranteed for seven months to the end of May so, however interest rates behave in that time, this rate won't rise - though it could fall.

Rates like that are generally to be found in the fixed-rate market, while the average variable rate loan from the big five banks is 8.5 per cent.

That's crazy, says Superbank managing director James Munro, because it means borrowers are actually paying, in many cases, over 1 per cent more interest for the uncertainty of not knowing what rates they'll be paying in a year's time.

Read More - Opens in a new window
Commenting is closed

Property News

Weak sales, resilient prices

Auckland’s housing market saw another slump in sales volumes in May but prices are holding steady, according to the city’s largest real estate agency.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.


Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.

Site by PHP Developer