SBS Bank the Best for First Home Buyers

Over the past three years, economic conditions have conspired against first home buyers. A weak economy, job insecurity and high interest rates have put many Kiwis’ home ownership plans on ice. However, throughout this period, one bank has continued to provide steadfast assistance and support to make dreams of homeownership a reality: SBS Bank.

SBS Bank’s FirstHome Combo package has helped many Kiwis into a first home, and has won the bank Canstar’s prestigious Bank of the Year | First Home Buyers Award three years in a row.

Based on extensive research and a sophisticated and unique methodology, the Bank of the Year | First Home Buyers Award recognises the bank that offers not only outstanding value home loans, in terms of fees and interest rates, but also great customer service. Specifically, this includes tools and advice that help FHBs make informed choices when making the biggest financial decision of their lives.

To be included in our award, financial institutions have to provide mortgage products that cover floating, 1-, 2- and 3-year fixed rate terms. They must also offer a full range of banking products plus have face-to-face staff available, whether in branches or working as mobile lenders across the country.

How is the Canstar First Home Buyer Award calculated?

Overall, Canstar’s expert research team considers five main categories, which follow a customer’s journey through the life of their home loan. The five categories considered are:

1 Planning for a first home: How the institution supports consumers during the planning stages of buying their first home, through providing budgeting tools, access to property research facilities and the provision of competitive savings accounts to help saving towards a deposit.

2 Applying for and settling a first home: How the institution supports consumers in the application and settlement stages of the loan. The different application channels offered by the institution, the types of security available against the loan, and the range of guarantee and deposit options available.

3 Managing a home loan: Considers day-to-day management of the loan, any variations to the loan that may be required and the total cost of the loan.

4 Getting home-loan assistance: How the institution supports consumers over the life of the loan. Considers the availability and forms of online and call centre assistance, and the physical presence of the institution through branches and mobile lenders.

5 Closing a home loan: The ease and cost associated with discharging the loan.

Each year the award methodology is tweaked to reflect market conditions. For the 2024 award, Canstar’s research team adjusted their calculations to take into consideration:

• The softer housing market and easing house prices
• Cashback offers available
• Reduced interest rate deals for FHBs

Why SBS Bank is Canstar’s Bank of the Year | First Home Buyers for the third year in a row?

This year, once again, SBS Bank achieved its win against stiff competition. Our analyst team noted the prevalence of cashback offers among the financial institutions in its research, and commended SBS Bank for offering a complete wraparound service to first home buyers, one that delivers extremely competitive rates in addition to a range of cash and other financial incentives.

SBS Bank’s FirstHome Combo offers a range of benefits for customers who bundle all their banking, insurance and KiwiSaver products with the financial provider:

• Interest rate discounts
• $2000 cash to help cover the costs connected with purchasing a first home
• $1000 to help cover first year’s home and contents insurance premiums on policies with SBS Insurance
• $1000 top-up for Lifestages KiwiSaver Scheme account(s)
• 12 months’ free broadband with Pulse Broadband

So if you’re a prospective FHB, then make sure that when you’re comparing lenders for the best deal in the market, you consider SBS Bank. The winner of Canstar’s award for Bank of the Year | First Home Buyers for the third consecutive year.

For more details of SBS Bank's award win click here!

First home buyer: compare home loans with Canstar

If you’re in the process of securing finance, you’ll need to shop around to get the best deal. Which is where Canstar can help.

The table below displays some of the 2-year fixed-rate home loans on our database (some may have links to lenders’ websites) that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by company name (alphabetical). Products shown are principal and interest home loans available for a loan amount of $500K in Auckland. Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products. Canstar may earn a fee for referrals.

Compare home loan rates for free with Canstar!

About the author of this page

This report was written by Canstar’s Editor, Bruce Pitchers. Bruce has three decades’ experience as a journalist and has worked for major media companies in the UK and Australasia, including ACP, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.