Banking on first home support

SBS Bank’s CEO Mark McLean was in Blenheim recently meeting with Branch Manager Chris Mitchell. William Woodworth took the opportunity to find out more about home ownership.

Building on 155 years of opening doors to home ownership for Kiwis is key to helping people get on the property ladder.

SBS Bank CEO Mark McLean and Blenheim branch manager Chris Mitchell are catching up in Blenheim.

Getting a roof over peoples’ heads helps communities like Blenheim flourish, Mark says.

Turns out SBS have a good track record – one that goes back 155 years.

“Our purpose of finding Kiwis a place to call home goes back to our DNA as Southland’s Building Society founding 155 years ago,” Mark explains.

The Invercargill-based, customer-owned bank has been awarded Canstar’s best bank for first homeowners three years in a row.

First home buyers get a first-year reduction of 1% interest, plus $2000 cash back, $1000 into in-house insurance and KiwiSaver schemes and a free year of internet if customers sign up with Pulse Energy.

“We’re not chasing a shareholder return and keep very competitive interest rates while supporting members’ individual difficulties,” Mark says.

“From our perspective if you get a roof over people's heads, it creates a more stable family environment which creates a more thriving community.

“As interest rates start to decrease again, it’s a pretty affordable time for first buyers.”

With competitive home loan rates, FirstHome Combo benefits and financial education app SKIP, both believe their wrap-around assistance for first home buyers is second to none.

“SKIP sets achievable saving goals and educates first home buyers on what is a daunting process, and Chris and our teams across the country are always keen to have people ask questions,” Mark explains.

“Challenges for first time buyers is mostly deposits - servicing mortgages aren’t much more compared with rent, particularly for young couples or a couple of mates with solid employment.”

Mark and Chris both keep close eyes on housing markets throughout regional centers.

“I’ve always felt Blenheim and Marlborough has a micro economy here driven by our own industries,” Chris says.

“While it is still admittedly tough out there for many reasons, the peak and trough fluctuation of house prices isn’t as volatile as other regions.”

On a national scale, Mark says recent developments in the official cash rate and the Commerce Commission report on the banking sector show positive signs.

“We are very supportive of encouraging more competition by enabling registry settings for a more even playing field and assisting new entrants.

“It's still tough for households out there with the cost of living, but the governor surprised the market a bit by dropping the official cash rate.

“I think further decreases between now by end of our financial year will give people more confidence,” Mark says.

Chris is keen to get more Marlburians onto the property ladder.

“A big life chapter is buying your first home, but it’s all new so as lenders we want to help right through the first home buying process - if I wanted to fix my car, I find a trusty mechanic!”

“I've been loaning for a long time, but it still gives me the same buzz when you can say to someone “your loan is all good to go and the house is yours.”