A couple who locked in a five-year fixed home loan in 2023 and later regretted the decision have failed in a complaint to the Banking Ombudsman, which found no evidence the bank misled or pressured them.
The pair had previously fixed for one-year terms in 2021 and 2022, but in 2023 chose the lowest available rate at the time by fixing for five years, when special rates averaged between 6.29 and 6.66 percent.
After rates later fell and banks began advertising 12-month rates as low as 4.49 percent, the couple sought to break the loan, facing estimated fees of $45,000 to $50,000.
The woman claimed she relied on bank staff advice that rates were likely to rise, but the ombudsman said written records showed she was given options, accurate information, and time to decide, and that disclosures clearly warned break fees could be large. The complaint was not upheld.
The ombudsman noted the woman “was given time, options and accurate written information before she made the decision. We found no evidence of pressure or misleading conduct by the bank.
“We also considered whether the bank properly disclosed early repayment charges. The original loan agreement and subsequent variation letters explained how these charges were calculated and noted that such charges ‘could be large’. The bank met its obligations under the Credit Contracts and Consumer Finance Act 2003.”
If they would’ve comprehended that banks create the ‘money’ they lend (debt) out of nothing, with ‘backing’ by the CB reserve bankster cabal backed by that couple’s own peonage, they might have been wiser.
Did they really think that the interest rates they were charged were dictated by that bank?
Did they really think that the interest rates they were charged were dictated by a sovreign NZ reserve bank?
You live and learn.
The $$$ in your wallet are DEBT!
Proof me wrong.
Banks are just suit and tie wearing thieves. Creating computer generated “money” on a screen then charging you interest on it while they make billions in profit each year. The biggest con evwr. The entire population is enslaved to these ****ers. Outlaw this satanic system of usury now!!