BNZ and Westpac stay out of new build loan battle

ANZ last week introduced a 1.68% variable rate for new build homes, becoming the cheapest floating rate in the market. 

While ASB previously launched a "Back my Build" rate at 1.79% in May, tapping into the Reserve Bank's cheap Funding for Lending Programme. 

Although ASB has enjoyed record demand from its new build launch, with more than $2 billion in loan applications, rivals BNZ and Westpac have not got similar plans in the works. 

BNZ's cheapest floating rate is 4.55%, while Westpac's is 4.59%, with no special products for new homes.

A BNZ spokesman said the current market was "very competitive". 

He did not have any pricing changes to announce, but urged borrowers "to take a look at all their options and be aware of any conditions that might apply to the lending": "BNZ is a big supporter of first home buyers and we are focussed on what we can do to help more new homes onto the market. We have 12-month pre-approvals for new builds giving customers lots of time to progress through the new build process.

"Depending on the specifics of the deal we can lend on just a 10% deposit and we have increased the number of bankers who are able to help customers navigate the process of building a new home," the BNZ spokesman added.

Westpac said it had nothing to announce, but "constantly review[s] our policies and pricing to ensure we provide good value to our customers".