The 1.79 per cent rate is available to those who build a new home from scratch or buy a home and land package. The rate is substantially lower than the one-year fixed terms at the other major banks which sit around 2.25 per cent although Heartland Bank last week announced a 1.85 per cent rate fixed for one year and a 1.95 per cent variable rate. Craig Sims, ASB executive general manager of retail banking, said its ASB Back My Build rate used funds available under the RBNZ's funding for lending programme. "A more sustainable housing market is about increasing housing supply, but it is also about creating more energy-efficient healthy homes." Sims said the variable rate would be available for up to three years from when the borrower first draws down.

Source: New Zealand Herald May 16, 2021 21:54 UTC