Finware Focus

14 March 2014 - Sovereign and ASB Increases Rates

Effective 14th March, ASB increased its Housing variable rate by 0.25% p.a. and increased its 12 month fixed rate by 0.20% p.a. The new variable rate is effective for existing home loans from 21st March, 2014.

Also, Sovereign increased its Housing variable rate by 0.25% p.a. and increased its 12 month fixed rate by 0.20% p.a. For existing Go Home Loans these new rates will take effect on 23rd April, 2014.

For new Sovereign applicants:

·         An application fee, Low Equity Fee, Lenders Mortgage Insurance Fee and Early Repayment Fee may apply.

·         Fixed interest rates will be determined on the date at which the loan is fully approved.

·         The fixed rates will be held provided we receive the signed acceptance the next business day following full approval.

·         Fixed rates will be held for up to 60 calendar days from the date of documentation.

For existing Sovereign business:

·         Upon receipt of a fixed rate expiry letter, clients may secure current prevailing interest rates.

·         Once instructions to roll over a fixed rate have been locked in, clients are protected from increases in fixed rates prior to the rollover date. If rates decrease during this period, normal Early Repayment Adjustment fees would apply to any request for the lower rate.

·         When interest rates change in the period between an adviser having received a fixed rate instruction from their client and Sovereign receiving the instruction, then Sovereign will apply the pre-change rate to the loan, provided that:

1.     The adviser has received the instruction in writing from the customer prior to the notification of interest rate changes by Sovereign.

2.     Sovereign receives the request to apply the pre-change rate together with the customer’s written instruction by 5pm on the business day following the effective date of any rate increase.

Check out the new rates in iLend™.

Lender

Product Name

Initial Rate

+/-

ASB

Housing Fixed 12 Months

5.69%

0.20%

ASB

Housing Variable

6.00%

0.25%

ASB

Orbit

6.00%

0.25%

Sovereign Home Loans

Go First Fixed 12 Months

5.69%

0.20%

Sovereign Home Loans

Go Fixed 12 Months

5.69%

0.20%

Sovereign Home Loans

Go First Standard Variable

6.10%

0.25%

Sovereign Home Loans

Go Standard Variable

6.10%

0.25%

Sovereign Home Loans

NewBuild Standard Variable

6.10%

0.25%

On another note, both ASB and Sovereign removed its 18 and 24 month rate specials as of 14th March, 2014.

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