Frances Cook and OneRoof’s Need to Know series set the direct record in the home loan process.
The ASB will use cheap Reserve Bank financing to offer homeowners a low-cost mortgage.
A 1.79 percent fee is available for those who build a new home from scratch or purchase a home and a parcel of land.
The rate is substantially lower than the one-year fixed terms at the other major banks, which stand at around 2.25 percent, although Heartland Bank last week announced a fixed rate of 1.85 percent for a year and a variable rate of 1.95 percent.
Craig Sims, executive general manager of retail bank ASB, said his ASB Back My Build fee used funds available under the RBNZ loan financing program.
The program was launched last year with the aim of keeping mortgage rates low to help stimulate the economy.
Sims said it expects the fee to result in the ASB making about 1,000 additional home loans next year.
“The provision of housing is a major problem for the New Zealand economy. That is why we are eager to give an advantage to customers who wish to join us as part of the solution. We have deliberately chosen to make the offer available to owner-occupiers and investors in recognition of the role investors can play in making new high quality homes available to Kiwi families. “
In addition to the low fees, borrowers will also receive $ 2,000 cash back if they incorporate environmentally friendly design into their construction and can show that they intend to build a six-star or higher Homestar home.
“A more sustainable housing market means increasing the supply of housing, but also creating healthy houses with greater energy efficiency.”
Sims said the variable rate would be available for up to three years from the time the borrower drops the amount.
“The ASB Back My Build variable rate is unique and we are confident that the market-leading special rate, coupled with Homestar reimbursement, will make a significant difference for first home buyers in particular, while helping to create a more housing market. sustainable long term. “