Non-major announces rate below 4%

by Maya Breen23 Nov 2015
SBS Bank has announced a special one-year fixed home loan rate of 3.99% p.a., a market-leading rate as the first to drop below 4%. 

The offer, effective today, is available for a limited time and launches along with the bank’s brand refresh.

Chief Executive Wayne Evans told NZ Adviser it was an exciting time for the bank and there were three reasons for the interest rate change this morning, as part of their growth strategy.

“The first is to provide some tangibility to our members of the benefit of belonging to SBS,” says Evans. 

“The second priority was to support our brand’s launch and support the reinvigoration of SBS as a nationwide bank that presents a very genuine alternative to the larger Australasian banks and thirdly balance sheet growth.”

“We expect the growth from this campaign to start hitting late December but certainly in the Q4 of the financial year.” 

Evans says the likelihood of a sub 4% interest rate remaining long-term will increase if the official cash rate goes down at the next Reserve Bank meeting in December.

“As a mutual, our members are our owners. As a result, we are focused on giving back to them every day through a range of member benefits, such as market-leading lending interest rates. The brand refresh has also been undertaken with members in mind, particularly in terms of simplifying their interactions with the bank,” said Evans in a statement.

The brand refresh includes a new visual identity to provide better integration and brand consistency across SBS Bank, included streamlining the product suite and enhanced systems and member services.

“The brand refresh is a key part of realising SBS Bank’s growth strategy, which is focused on playing to our strengths in residential lending and deposits and meeting customers’ day-to-day transactional banking needs,” said Evans.

Key terms of the offer, available for a limited time and subject to standard terms and conditions, are 3.99% p.a. fixed one-year home loan interest rate for new lending over $100,000; for residential, owner-occupied properties only; and minimum equity of 20%.

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