Source: The Co-operative Bank
The Co-operative Bank has demonstrated market leading action by passing on the full Official Cash Rate (OCR) reductions to its floating home loan customers during this cycle of rate reductions, reinforcing its commitment to a fair deal.
Since the Reserve Bank began reductions to the Official Cash Rate 15 months ago, it has dropped by 3%, from 5.5% to 2.5%. In response, The Co-operative Bank has reduced its floating home loan rate by 3.1%, making it the only bank in New Zealand to have passed on the full benefit of OCR cuts to floating rate customers.
The Co-operative Bank is encouraging New Zealanders to consider their options to get the best deal now, as well as select a Bank that values fairness and delivers the service that people should expect from a bank.
When compared to all banks in the New Zealand home loan market, The Co-operative Bank’s floating home loan rate of 5.3% is the lowest variable rate available to all customers. Floating rates offer customers flexibility and the potential for lower interest costs if mortgage rates continue to fall.
Mark Wilkshire, Chief Executive of The Co-operative Bank, said “With the bank’s floating volumes almost doubling in the last year, we’re pleased to offer both great value and flexibility through our market leading rate”.
“As a customer-owned bank, The Co-operative Bank puts customers first in pricing decisions. We estimate that New Zealanders could be paying more than $100m per annum extra due to the amount of floating rate cuts held back by the Big Four Australian banks,” he said.
“With another OCR review due at the end of November, it will be interesting to see how other banks respond in what remains a delicately poised economic recovery,” Wilkshire said.
Table: Floating Home Loan interest rate deductions in this rate cycle – since 31 July 2024
About The Co-operative Bank
We are a New Zealand Co-operative 100% owned by our customers. We are the only bank that shares its profits directly with customers in the form of rebates when we make sufficient profit. Since 2013, we’ve shared over $24 million with customers.
Customers have voted us the winners of Consumer People’s Choice Award for four years running, making us the recipients for nine out of the last ten years. We are also proud members of the B Corp movement which recognises businesses that meet better standards of social and environmental performance.
