Kiwibank has confirmed that its home lending inquiries increased by 30% since it slashed floating rates and has encouraged other banks to follow its footsteps.
Kiwibank slashed floating rates by 1% this month, down to 3.4%, which is lower than the cheapest variable rate at a big four lender. As a result, the bank received an influx of inquiries from existing and new customers.
“Following the move, we have received high volumes of enquiries from both new and existing customers wanting to talk about their home loan options with Kiwibank. Retail home loan enquires are up 30%, and SME enquiries are up 20%,” said Kiwibank chief executive Steve Jurkovich, as reported by Good Returns.
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Jurkovich encouraged other banks to follow suit to help Kiwis save around $400 million per year in interest, “which would make a huge difference to people's lives.”
“This is about what Kiwibank can do to support its customers, but I do wonder why there's been no move from the other banks on this,” he said. “[An extra] $100 a fortnight back in the pocket of kiwis makes them better off.”
“Whether they are investors, first-time homeowners, or looking at a change, we [always want] to assist New Zealanders to achieve their homeownership aspirations,” Jurkovich concluded.