BNZ take mortgage competition up a notch

The bank has launched Home Loan Switch offering individual or joint ownership mortgage holders who refinance their loan directly up to $2,500 in conveyancing fees.

Through its accredited home loan experts, the bank says it will take care of the required legal documentation, removing some of the cost and complexity from what can be a stressful process.

“Switching your home loan to a new bank shouldn’t feel harder than it needs to be,” Karna Luke, BNZ executive customer, product and services says.

“Home Loan Switch will not only help customers save money when refinancing, it also simplifies the process, helping reduce some of the friction and stress.”

Citing the record 41% of new mortgages taken out in December by homeowners switching loan providers, although this dropped back to more normal figures of 22.3% in February, Luke says the bank knows mortgage holders are shopping around.

The new product is designed for simple refinancing only – individual or joint ownership. No trusts or companies, residential property or bare land, up to two securities. Additional eligibility criteria apply.

Luke says the deal is completely optional, giving customers more choice, and they can still choose to pay for their own lawyer if they want to.

“If a customer’s refinancing needs are more complex or they require legal advice, engaging a lawyer will still be necessary. But for many home loan customers, it will mean fewer hurdles to jump through, and more money left in their pocket.

“The Government and Commerce Commission have a clear goal of improving competition in the sector and making it easier for customers to switch is one way we are supporting that.”