BNZ saves home loan customers $64 million

BNZ saves home loan customers $64 million

In just four years, BNZ customers have been spared over $64 million in interest on their home loans thanks to the offsetting features of the bank’s TotalMoney account.

BNZ TotalMoney home loans are a typical floating rate loan that allows customers to use money sitting in other accounts to offset the amount of interest they’re paying, saving them money and, potentially, enabling them to pay off their home loan sooner.

Andy Symons, BNZ Director of Retail, says, “When we introduced TotalMoney four years ago we knew the concept of offsetting had the potential to save New Zealanders a lot of money on their home loans. It’s heartening to think that our customers have been able to benefit to the tune of some $64 million within such a lean economic environment.”

TotalMoney accounts also allow customers to operate up to 10 accounts for a flat rate fee of $10 per month, any money residing in those accounts will help offset interest payments on a TotalMoney home loan.

Symons explains, “If you had a mortgage account with $200,000 owing, and another with $50,000 in it, you’d only pay interest on $150,000 and since our TotalMoney home loan rates are lower than our standard floating rate, the savings soon add up.”

TotalMoney accounts can be for individuals, family groups or a trust, meaning the flexibility of account structure offers additional benefits. It also works to support inter-generational lending without, for instance, a parent having to use their house as security. Given the right account structure, it’s even possible to pay zero interest on a TotalMoney home loan.

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