Kiwibank has changed its headline home loan marketing to an offset product that can lead to significant savings for property owners.
The Kiwibank offset mortgage package enables customers to use their savings, and the savings of other family members, to be “offset” against the home loan, cutting the amount of interest required to be paid. Kiwibank has also cut its offset interest rate from 5.50% p.a. to 5.25% p.a.
Kiwibank Chief Executive Paul Brock said interest rates across the board are very low, so the bank was looking at other ways to help home owners get mortgage free quicker.
“The offset product enables customers to significantly reduce the amount of the loan incurring interest charges. We calculate savings over the term of a loan of $30,000 to $40,000 and much shorter repayment periods.
“It also allows parents and other family members to assist the home owner by letting their savings and transaction balances be used to reduce the amount incurring interest charges.”
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