BNZ targets investor market

Craig Pope

BNZ has rejigged its rate offering this morning, putting investor and owner-occupier rates on a level playing field.

One year rates are now 3.49%, two year investor rates are now 3.55% and its 18 month rate is 3.39%. 

The bold move comes amid signs of a comeback for the investor market. 

Both investors and first home buyers recorded the highest borrowing figures for the year in November. Investor borrowing was strong in November reaching $1.36 billion, up from $1.09 billion in November 2018.

Martin Elliott, BNZ General Manager Home Lending, said the bank wanted to offer "clear, compelling and competitive home loan rates” in the current market.

Craig Pope, of Pope & Co Mortgages in Wellington, said the cuts were a sign of increased competition for the investor market.

"As the investors have really come back into the market, it's a big chunk of business potential for banks. Most investors are pretty rate savvy and likely BNZ could see investors refinancing away to other banks to get better deals," he said. 

Kris Pedersen, of Kris Pedersen Mortgages, said BNZ's move could have been prompted by "a case of them losing market share".