BNZ joins Kiwibuild buyer battle

BNZ's new offer promises customers pre-approved loans for 12 months, rather than the typical two or three month period. The lender will also grant up to 95 percent LVR loans for the new build properties.

The 95 percent mortgage is available as new build homes are not bound by LVR restrictions. Buyers of other new build homes off plan will also be able to access the new offer, BNZ confirmed in a statement.

The offer comes as KiwiBuild starts to get off the ground. The ballot has already started for the first Kiwibuild homes in Auckland. The government scheme aims to build 1000 homes in its first year and 100,000 in total.

The extended pre-approval period will be welcomed by prospective Kiwibuild buyers, who need to secure financing to buy one of the homes. “It means our KiwiBuild buyers can take their time," says BNZ’s consumer and wealth chief customer officer Paul Carter. "We’re absolutely focused on our customers’ best interests and always check to make sure our loans are still affordable before final settlement," Carter adds.

Carter says BNZ has lent over $10.7 billion to first-time buyers in 2018: “As BNZ backs the government’s Kiwibuild programme we’re actively looking for new ways to help more of our customers into their first homes.”

BNZ’s charm offensive for Kiwibuild buyers follows a similar move made by ASB earlier this month. ASB revealed a 95 percent mortgage offer and has also vowed to give Kiwibuild home buyers a $2,500 cash contribution for fees and home improvements.