Canstar has named Kiwibank as New Zealand’s top home loan provider once again, making it a back-to-back win.
Canstar general manager Jose George said Kiwibank’s success reflected how it catered to all Kiwis – from those who want to enter the property market to those who want to climb the property ladder.
“Canstar considers both the price and features offered by banks, and in this case, Kiwibank was a clear standout. Its variable rate, in particular, is priced very attractively and is therefore beneficial for consumers who may want some flexibility around their mortgages,” George said in a statement.
“Winning the award two years running is a significant achievement, and we congratulate Kiwibank on its success.”
The bank’s second win comes as New Zealand’s government addresses the housing crisis, including providing more support for first-home buyers.
Elliot Smith, the chief product and strategy officer at Kiwibank, commented: “It is great to be awarded the Canstar bank of the year for Home Loans for the second year running.
“It has been a huge year for home buyers in New Zealand, and we are proud to have supported people fulfilling their homeownership goals whether that be their first home, next home, or bach. By decreasing our variable lending rate and reducing the gap between fixed and variable rates, we had the opportunity to provide customers with greater flexibility, choice, and savings.”
According to Canstar, it takes a couple, on average, incomes, more than twice the time to save a 20% deposit now as it did five years ago. It assumes the couple can save 25% of after-tax income, and property prices increase at the same rate they have over the last five years – nearly 9% across New Zealand, and more than 6% in Auckland. Under this scenario, it will take a couple nearly 14 years to save a deposit compared to nearly six years in 2016.