TSB has announced what is believed to be New Zealand’s first-ever ten-year fixed rate home loan, as the country’s mortgage wars hot up. The product carries a 5.89% rate for residential and investment property loans, fixed for ten years with a maximum loan-to-value of 80%.
TSB chief executive Kevin Murphy says the new product had universal appeal, to first-time buyers, investors and remortgagers. “We canvassed homeowners who had taken out a mortgage or renewed their mortgage in the last five years and they described our new offer as highly appealing,” he explains.
“We think there is a gap in the market and that consumers are looking for certainty around long-term interest rates. To know what your interest rate will be and you can budget on that for a longer period – for people who need to manage their incomes closely, I think this will be very attractive.”