Advisor angry with new BNZ pricing

BNZ has introduced new pricing terms on its broker channel and no longer guarantees mortgage interest rate offers for a 5-day validity period.

Friday, September 24, 2021 8:33 AM

The big four banks moved to new pricing conditions last week. The new rule means that you can change the pricing offered by the lender if the rate fluctuates during the 5-day validity period.

This change has already found some clients who have agreed to a mortgage rate, but found that the bank has changed it to a higher price.

BNZ, like its rivals, has raised rates in the past few weeks. In short, some advisors and clients are affected by the new model.

Fixed rates have risen across the board ahead of the expected OCR hike in the Reserve Bank early next month.

One adviser told TMM Online that he received the restructuring price from BNZ on Friday and was given a five-day validity period, but was told to move to a higher rate on Monday.

“This basically means that even with a five-day offer, the price has risen by 30 points, so conversations with clients about how to configure a loan under the new responsible lending practices will soon be invalidated. Means.

“The offer is not worth the paper on which it is printed, so the question is, is this a practice accepted by lenders?”

The new pricing has sparked a raging backlash on social media, with several brokers launching attacks at Facebook banks.

Brokers called the policy “false or misleading,” “shocking,” and “deceptive,” and the BNZ accused it of “moving the goal post.”

Some advisers are believed to have complained to Bank Ombuzman about the new policy.

The adviser said TMM online The change caused additional work as the broker was forced to re-contract with the client to discuss higher rates.

A BNZ spokesman said the policy was changed to match brokers with other BNZ clients.

A spokeswoman said, “Last week, we matched the pricing of our broker channels with those of other channels, which keeps them consistent regardless of the channel the customer chooses to trade with us.” Said.

“Prices are subject to change, but if a customer wants to fix a particular rate and duration, then rate locking should be considered.”

According to a spokeswoman, Ratelocks allows customers to secure up to 60 days of pricing and duration.

“New customers must get credit approval unconditionally, but existing customers can get credit approval within 60 days of their current maturity.”

tag: BNZ

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Advisor angry with new BNZ pricing

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