DATE: 06/11/2013
CATEGORY: Blog, First Home Buyer, Home buying, Interest rates, Mortgages

Kiwibank offer the cheapest home loans – unless you know better!


Have you ever wondered why Kiwibank won’t let you use a mortgage adviser?

Adviser friendly banks like ASB, ANZ and Westpac give you the choice of accessing their home loans via their branch network, mobile managers, or – in our view, even better – by using impartial mortgage advisers like us. So it begs the question why do Kiwibank (and for that matter BNZ) lock out mortgage advisers? They may suggest that not paying mortgage advisers allows them to pass through savings to customers. But we’ve never seen Kiwibank or BNZ able to offer better deals than we’ve been able to negotiate with the other banks.

Our take is that Kiwibank want to control your choices and limit your options – and maybe would prefer there are things you just didn’t know. They do this by denying you access to impartial advisers like us who don’t have corporate sales quotas to meet but whose reason for being is to provide expert advice and get homeowners the very, very best possible deal.

Kiwibank make a lot of noise about giving Kiwis “better value” and about “guaranteeing lower interest rates”. But our view is that this isn’t entirely accurate. One of the many reasons is that their claims of offering mortgage deal wonders are often based on comparing standard advertised rates with other banks.

Nine out of ten of our clients never pay advertised rates. Armed with our negotiating sabers we regularly get the banks to offer our clients lower rates than Kiwibank (and BNZ). The result is more spare cash for you to repay your mortgage quicker or to spend on treats. That’s just one of the ways we add value.

Plus, at Awesome Mortgages we know price, while important, isn’t everything. How your home loan is tailored to fit your unique situation and the goals you have – and the choices you make when it comes to interest rates (eg whether to fix short or long) are things which help you get ahead faster.

Kiwibank’s core purpose, in common with other banks, is selling products and making money from the interest and bank fees you pay. Our selfish agenda? Providing free expert advice and making sure you don’t pay any more interest or bank fees than you have to. We make money from achieving win-win outcomes. A very different value proposition.

So what’s really, really important to you?

Some people think if they get their home loan from Kiwibank it’s good for New Zealand. But we’ve yet to see a client support a bank philosophically when it costs them more money.

And the reality is all the banks know it’s good for their brand to give something back to the community. ANZ, for example, lend a hand in their communities through their volunteer programme, Westpac support rescue choppers and disability sport and ASB have their countless community partnerships, awards and Community Trust grants. If it’s about helping New Zealand and acting philanthropically let us get you a better deal on your home loan so you’re free to use the money saved to support your own personal charity or worthy cause.

It takes a lot of skill, technical knowledge, and bank inside know-how to negotiate a great home loan deal. Most clients lack one or all of these ingredients, or are simply short of time. Others forget the fact that the dominant purpose of all banks is to turn a big profit. Just because Kiwibank is Kiwi owned doesn’t guarantee you, or New Zealanders, a better deal.

If you’re thinking of giving Kiwibank a go, or have a home loan with them already, contact us for a better deal, better value and better choice. Guaranteed.


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Posted in Blog, First Home Buyer, Home buying, Interest rates, Mortgages

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