Tag Archives: Banks

Battle of the Banks: Merger Fuels War over Mortgages

At the New Zealand Herald:

Banks are dropping mortgage rates and offering cash sweeteners, loaded credit cards, payment of legal fees and tablet computers as they go to war for customers.

High on their target list are disillusioned National Bank customers, whose bank is to be merged with the ANZ, which owns both brands.

While it is time to say goodbye to the black stallion that has held the head high of a true thoroughbred bank for many years (I remember it back in my farming years in the 1980s!), we can all be thankful of the very competitive mortgage rates on offer as a consequence. The revered black horse has held a market share that has been the envy of most banks and who now see it as an opportunity to lure those that are struggling to come to terms with the merger and dropping of the brand that has been part of the banking landscape for so long.

On the positive, money is so cheap at the moment and this must be one of the most favourable lending eras that we have had for years! While I know here in Christchurch there are more hurdles to jump and criteria to meet post-quake, in my opinion it is well worthwhile enduring the pain to secure a mortgage. Whether it is a first home or an investment property, I believe both fall into the category of “good debt” and will help you get ahead in the long run. With Christchurch already experiencing strong growth in the housing market, jumping onboard has got to be a good thing as demand for housing is set to look high for some time yet.

Go on, now is the time to do it – property is unlikely to become more affordable than it is today!