Source: Radio New Zealand
The loan underwritten by Kainga Ora. RNZ
ASB has joined the Kāinga Ora First Home Loan scheme, which allows borrowers to buy a house with a deposit of only 5 percent.
The loan is underwritten by Kāinga Ora, so borrowers are usually able to access the same interest rates as buyers with 20 percent deposit.
Previously it had only been available through Westpac, Kiwibank, The Co-Operative Bank, SBS, Unity, Nelson Building Society and NZHL.
ASB executive general manager personal banking Adam Boyd said home ownership was a “cornerstone of financial wellbeing and security for many New Zealanders”.
“This loan helps to get more people into their own homes without the challenge of saving a large deposit while managing everyday expenses, like rent.”
He said people using the scheme could also be eligible for ASB’s cash back offer.
Glen McLeod, head of Link Advisory, said it added another lending option for people thinking about buying a first home.
“The underlying criteria and approval process remain the same, as Kāinga Ora is still the gatekeeper for applications. More lender choice is positive, but the practical impact will depend on each client’s situation and how they meet Kāinga Ora’s existing requirements.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
