Source: Radio New Zealand
RNZ
BNZ says its new home loan refinancing solution will make it easier to move banks without having to pay legal fees.
Generally, a lawyer is required to move a home loan from one bank to another.
But BNZ said its process would take care of the legal documentation and let people move their home loan directly.
The bank said it was designed for simple refinancing only.
“If a customer’s refinancing needs are more complex or they require legal advice, engaging a lawyer will still be necessary,” said BNZ executive customer, product and services, Karna Luke.
“But for many home loan customers, it will mean fewer hurdles to jump through, and more money left in their pocket.”
Switching numbers risen while banks competed with cashback incentives to tempt customers from other lenders.
ANZ’s offer of 1.5 percent cashback for new business at the end of last year prompted a significant jump in the number of people changing banks.
Loan Market adviser Karen Tatterson said BNZ’s offer was interesting. She said Kiwibank offered a similar facility.
“There is an inherent financial benefit for clients refinancing using this service as it removes their direct legal cost. A key factor will be if BNZ continues to offer the full cash contribution to clients,” she said.
“This offers a simpler, more cost efficient process for refinancing, and it will be interesting to track the usage in the initial stages.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
