Kiwibank is offering home buyers 1% of their new home loan as a cash contribution, up to $10,000.
It applied to new home loan applications until June 28, and is subject to conditions, including the borrower having a minimum $300,000 loan and 20% equity.
It means if a loan’s worth $540,000, a borrower could get $5400.
“This market-leading cash offer is designed to put money back in the pockets of Kiwi at a time of rising costs,” senior product manager Pip Maxwell said.
It comes as interest rates rise, on the back of the Reserve Bank’s efforts to reign in inflation, which sits at 6.9%.
Towards the end of May, it lifted the Official Cash Rate to 2%.
At the end of May, Kiwibank was among many banks to hike their home loan rates. It lifted its ‘special’ one-year fixed loan from 4.55% to 4.85%, for those with debt less than 80% of their home’s value. A two-year loan was 5.19%
Less than a year ago, the bank was offering a two-year fixed rate of 2.49%.
For savers, the bank is offering 3.15% on a one-year term deposit, for those with more than $10,000.