First time homebuyers Nathaniel​ and Laura Warmington have the lowest home loan rate in the country. They are paying 2.25​ per cent on a floating rate loan from KiwiSaver fund Simplicity. That compares to the rates from the main banks of between 4.59 per cent and 3.4 per cent.

ASB, Westpac, ANZ and Kiwibank are all offering 2.55​ per cent for their one-year fixed loans for people who have equity in their homes of more than 20​ per cent.

The loans are effectively investments for the Simplicity KiwiSaver scheme, Stubbs said, likening the lending to the way building societies lent to their members.

Simplicity managing director Sam Stubbs said customers hoping to buy a first home, who have been saving with the fund for a year or more, could sign up to a monthly ballot for a six months pre-approval to buy their first home.

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