ANZ New Zealand commits $1 billion in special mortgage lending to help relocate Christchurch homeowners

- low 3.70% one year mortgage rate to assist affected residents -

ANZ New Zealand today announced it has committed $1 billion in new residential mortgage lending and has introduced a special low interest rate for one year to help Christchurch residents relocate from the residential red zones where the Government has made an offer to purchase.

ANZ New Zealand Chief Executive Officer David Hisco said: “Today’s announcement by the Government provides people in these areas with the clarity they desperately need. But we also know many of them have had a torrid time for months now, and the challenges are not over for them yet.

“We want to help them back on their feet again, by providing something extra special for such an extraordinary situation.

“This offer demonstrates ANZ’s commitment to supporting Christchurch people for the long-haul. We estimate this offer could save someone borrowing $300,000 more than $6000, which should come as good news to them as they plan their future.

“If the whole fund is taken up this would provide a total of about $20 million in savings, adding to the assistance ANZ New Zealand is already providing to Christchurch,” Mr Hisco said.

Summary of ANZ New Zealand Christchurch Mortgage Package

• Low variable mortgage interest rate (currently 3.70%) pegged for one year at 2.04% below ANZ’s and The National Bank’s variable mortgage rate. After one year, the normal variable rate applies. The package is available directly through the ANZ and National Bank.
• Open to customers of any bank, including ANZ and The National Bank, who own a residential property in the residential red zones where a Government offer has been made for purchase, whether they decide to stay in Christchurch or to relocate.
• Loan capped at $500,000 per customer to ensure as many Christchurch residents who wish to relocate have access to the $1 billion fund. Additional lending available on normal terms.
• Applies to residential mortgage lending and is subject to normal lending criteria.
• Participating customers need to deposit the net proceeds of their Government payout into an ANZ or National Bank account within two months of receipt, and must have their salary direct credited to an ANZ or National Bank account.
• Loans must be drawn down by 31 December 2012.

“Although we have earmarked $1 billion for this package, the situation is unprecedented and we don’t know how large the take-up will be. Given this, we have capped the size of the loan each customer can receive to ensure everyone who is eligible has the opportunity to take up the offer. The amount available to each customer is however well above the average house price in Christchurch.

“We want to help Christchurch rebuild and we expect that many people will stay and be part of the city’s long term revival. We know however that some people may decide to move elsewhere in New Zealand and we want to be there for them as well,” Mr Hisco said.

For more information and to register interest, eligible Christchurch residents should call 0800 269 4663 or obtain more details at www.anz.co.nz/relief. Those taking up the offer will have until 31 December 2012 to draw down the loan.

Since the February quake, ANZ New Zealand has supported approximately 2900 retail and business customers through our special earthquake package, including deferring payments on loans with a total value of approximately $334 million and providing interest free overdrafts and other assistance totalling over $24 million.

ANZ New Zealand has also given $2 million to earthquake appeals since the September earthquake with $1 million being donated to the Red Cross, $750,000 donated to the Government’s Canterbury Earthquake Appeal and $250,000 donated to the Canterbury Business Recovery Trust.

In addition, ANZ New Zealand's Canterbury Earthquake Appeal Account now totals $6.15 million in public donations including a record $364,500 donated by ANZ New Zealand staff and with staff donations matched dollar for dollar by the bank.

People can continue to make donations to the Canterbury Earthquake Appeal either at an ANZ Branch (account number: 01-1839-0188939-00) or at The National Bank (account number: 06-0869-0548507-00), or via internet banking.