Squirrel part of innovative partnership offering 3.95% two-year mortgage rate

At Squirrel, we love a bit of outside-the-box thinking, especially when it comes to delivering better outcomes for Kiwi mortgage borrowers.

So, we’re stoked to have partnered with leading residential developer, Avant, and local iwi, Te Ākitai Waiohua, to offer eligible buyers a discounted two-year mortgage rate of 3.95%, when they buy a property at ‘Wirihana’ a development in Wiri.

Yep, that’s right - 3.95%.

Or about 2.55% below the current two-year fixed mortgage rates available out in market.

Sounds too good to be true, right. So why are we doing this?

It’s a super challenging market to buy in right now.

With mortgage rates up over 6.00%, and a cost-of-living crisis that just keeps getting worse, there are some major financial considerations, and hurdles, to be factored into the equation.

It’s scary stuff for buyers, especially anyone hoping to get into their first home.

And we’re seeing a lot of Kiwis are left feeling like they’ve got no choice but to step back from the market, put their plans on hold, and wait it out until things are a little less volatile.

Squirrel, Avant and Te Ākitai Waiohua have come up with this solution – a first of its kind in New Zealand – as a way to help remove some of those major financial barriers that buyers are facing, give them a bit of confidence back, provide more cashflow each month for living expenses and help get more Kiwis into high-quality, affordable homes.

How does the subsidy work exactly?

Well, first up, it’s lender-agnostic.

That means eligible buyers are able to get the discount no matter which bank or lender they sort their mortgage through.

That’s only possible thanks to the fact that Squirrel’s team of advisers have relationships with every major lender in New Zealand, which means we can give buyers access to more options.

We provide tailored advice to make sure each buyer ends up with the best rate and best mortgage solution for them.

Once the mortgage is locked in, buyers make their standard mortgage repayments, as they normally would, at the applicable two-year fixed interest rate agreed with their bank.

Then, buyers are reimbursed the difference between the applicable two-year fixed rate they’re paying, and a rate of 3.95%*.

For a buyer purchasing a $650,000 home, with a 5% deposit saved and a mortgage of $617,500, it means they’ll save around $30,492 over the first two years of their mortgage.

That’s almost $1270 a month.

Subsidy payments are made into the buyers nominated bank account either fortnightly, or monthly, in line with the frequency of mortgage repayments.

The subsidy is funded solely by Avant (the lead developer of the Wirihana neighbourhood) with funds held on trust with, and paid out by, Squirrel. 

More about the Wirihana development

The Wirihana master-planned residential development is located in Wiri, Manukau – built on land purchased from the Ministry of Housing and Urban Development, as a Land for Housing Project.

A collaboration between leading developer, Avant, local iwi, Te Ākitai Waiohua, and government, the aim of the development has been all about creating high quality, affordable housing – with KiwiBuild providing underwriting support for up to 97 homes as part of Stage 1.

Homes have been designed by top architecture firms Crosson Architects, Brewer Davidson and Sills van Boheman Architects – and include a mixture of two- to four-bedroom standalone, terraced and duplex homes. The masterplan community and landscaping has been designed by Isthmus.

Wirihana’s design also centres on creating spaces for residents to connect with one another, and with the natural environment which incorporates wetland zones, a lush native plant palette and walkways as a major focal point of the 11-hectare site.

Stage 1 is on sale now, with prices starting from $650,000.

For more information, visit www.wirihana.co.nz.

* The maximum subsidy payment is equivalent to 2.75% of the total value of repayments, over a period of two years.

The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Squirrel shall not be liable or responsible for any information, omissions, or errors present. Any commentary provided are the personal views of the author and are not necessarily representative of the views and opinions of Squirrel. We recommend seeking professional investment and/or mortgage advice before taking any action.

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