Over the past year, lower mortgage rates, a chilled housing market and the easing of the loan-to-value ratio restrictions have meant the stars have aligned for aspiring homeowners. In response, first home buyers (FHBs) have responded by taking a record number of new mortgages.
However, saving for a first home, and then maintaining that home, still requires a lot of budgeting, saving and financial discipline.
It also involves securing the right mortgage. And, currently, the first home buyer segment is a highly competitive space for mortgage lenders, who are actively competing for FHBs by offering them exclusive offers, cashbacks and competitive lending rates.
To help Kiwi FHBs navigate through the mortgage market, each year Canstar’s team of analysts researches the main FHB mortgage lenders in the market, and awards the best its First Home Buyers Award. And once again, this year, our accolade goes to SBS Bank.
How is the Canstar First Home Buyer Award calculated?
Based on extensive research and a sophisticated and unique methodology, Canstar’s Bank of the Year First Home Buyers Award recognises the bank that offers not only outstanding value home loans, in terms of fees and interest rates, but also great customer service. Specifically, this includes tools and advice that help FHBs make informed choices when making the biggest financial decision of their lives.
To be included in our award, financial institutions have to provide mortgage products that cover floating, 1-, 2- and 3-year fixed rate terms, including at 80% and 90% loan-to-value ratios (LVRs).
They must also offer a full range of banking products plus have face-to-face staff available, whether in branches or working as mobile lenders across the country.
How is the Canstar First Home Buyer Award calculated?
Canstar’s research team considers five main categories, which follow a customer’s journey through the life of their home loan:
1 Planning for a first home: how the institution supports consumers during the planning stages of buying their first home, through providing budgeting tools, access to property research facilities and the provision of competitive savings accounts to help saving towards a deposit.
2 Applying for and settling a first home: how the institution supports consumers in the application and settlement stages of the loan. The different application channels offered by the institution, the types of security available against the loan, and the range of guarantee and deposit options available.
3 Managing a home loan: considers day-to-day management of the loan, any variations to the loan that may be required and the total cost of the loan.
4 Getting home-loan assistance: how the institution supports consumers over the life of the loan. Considers the availability and forms of online and call centre assistance, and the physical presence of the institution through branches and mobile lenders.
5 Closing a home loan: the ease and cost associated with discharging the loan.
Lenders assessed for Canstar’s First Home Buyers Award
This year’s award research covered FHB mortgage products from:
- ANZ Bank
- ASB Bank
- BNZ
- Kiwibank
- SBS Bank
- The Co-operative Bank
- TSB Bank
- Westpac
Why SBS Bank is Canstar’s Bank of the Year First Home Buyers
This year marks the fourth time SBS Bank has won Canstar’s Bank of the Year First Home Buyers Award over the past five years and, again, the win is anchored by the lender’s FirstHome Combo: an FHB-only package combining a discounted 12- or 24-month fixed rate with cashback, insurance and KiwiSaver incentives.
Our research team noted that SBS Bank’s FirstHome Combo delivers standout total cost outcomes across one- and two-year fixed terms, which are the most popular fixed periods among New Zealand borrowers, and the most heavily weighted part of our assessment.
SBS Bank also participates in the Kāinga Ora First Home Loan scheme, which rounds out a result that reflects the bank’s long-standing focus on first home buyers.
SBS Bank’s FirstHome Combo offers:
- A discounted 12- or 24-month fixed rate
- $3000 cashback
- $1000 contribution to an SBS home insurance policy
- Up to $1000 contribution to an SBS Wealth KiwiSaver account, or accounts
In addition to its FirstHome Combo, SBS also offers prospective first home buyers the Skip app. The app provides support and advice to help Kiwis get into a first home faster.
And, importantly, it gives users the ability to earn up to an extra $2500 to put towards a first home purchase.
Compare first home buyer loans with Canstar
First home buyer: compare home loans with Canstar
If you’re in the process of securing finance, you’ll need to shop around to get the best deal. Which is where Canstar can help.
The table below displays some of the 2-year fixed-rate home loans on our database (some may have links to lenders’ websites) that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Products shown are principal and interest home loans available for a loan amount of $500K in Auckland. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products. Canstar may earn a fee for referrals.
Compare home loan rates for free with Canstar!
About the author of this page
Bruce Pitchers is Canstar NZ’s Content Manager. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery book 5 Minute Murder.
Share this article