TSB Bank leads the way to lower home loan costs

18 June 2009

Media Release
Embargoed until 6pm today

TSB Bank leads the way to lower home loan costs

New Zealand-owned TSB Bank today reduced its 2 year fixed-rate home loans to a nationwide low of 5.99% per annum.

Managing director Kevin Rimmington said the bank remained unaffected by the
comings and goings on worldwide financial markets – and was determined to pass
the benefits of this on to New Zealanders.

“TSB Bank’s ownership, funding and investment strategy means it has been effectively shielded from the flow-on effects experienced by many of the multinational banks.”

“All our funding is obtained from within New Zealand – we rely on the deposit support
of our customers. Right now, we’re experiencing record levels of funds growth.”

Mr Rimmington said TSB Bank’s investment strategy had always been somewhat conservative - and largely home loan focused.

“Most of our investments, up to 65% of our assets in fact, go into providing home loans
to every-day New Zealand families. We’ve been doing so for more than 150 years,
now – this rate reduction is simply continuation of that commitment.”

ENDS

© Scoop Media