Simplicity declares war with 2.95% mortgage

The investment firm will offer the cut-price mortgage to first time buyers, lending to customers who have held a Simplicity KiwiSaver fund for more than a year.

Simplicity members can access the mortgage through a monthly ballot system. Once approved, recipients will have six months to buy their first home.

The loans are available to customers borrowing up to 80% LVR for their first property. Repayments cannot exceed 30% of after-tax income for borrowers.

The Simplicity mortgages will have no break-fees, no penalty fees, and members can repay loans in full at no extra cost. The firm will fund the loans through KiwiSaver and investment fund contributions.