The Southland-based bank is investing $7 million to launch the FirstHome Combo, which will provide discounted loan rates to first time purchasers.
SBS chief executive Shaun Drylie made the announcement at the bank's annual general meeting yesterday, according to the Southland Times.
Drylie told attendees that the FirstHome Combo would help the lender fulfil its original mandate of supporting Southlanders into homes.
The chief executive said he expected the housing market to tip further away from investors towards first home buyers, but said the latter group would need a further boost.
The decision to launch the new product was due to the hot market in Southland and the rest of the country, Drylie said.
SBS' AGM marked the departure of chairman John Ward, a long-serving executive who joined the board in 2002.
SBS' special rates remain at the cheaper end of the market as of July 28. The bank's one year special is available at 2.19%, while its two year fixed rate is 2.49%.