Simplicity also offering lower interest home loans

"To celebrate, we're now offering first home loans charging just 2.95% interest.

How can we do it? It's simple.

Currently, all our KiwiSaver and Investment funds have some investments in bank deposits.

The banks then lend those deposits as home loans, making huge profits.

By offering first home loans directly to our members, we're cutting out the middleman.

And because the interest paid to us by borrowers will be higher than bank deposit rates, returns to KiwiSaver and Investment funds should be higher.

And lending directly to our members will make their first homes easier to afford."