Banking fintech Dosh teams up with Westpac to offer discounted home loans, lifetime of loan cashback

Dosh has teamed up with Westpac NZ to offer competitive mortgage rates. Photo / 123RF

New Zealand fintech Dosh has teamed up with Westpac in a new home loan initiative that could enable customers to get discounts on advertised mortgage rates and a cashback over the lifetime of their loan – provided they stick with Dosh.

Dosh co-founder and chief executive Shane Marsh said the initiative would bring much-needed value to homeowners in New Zealand.

“Dosh has access to the same rates Westpac’s third-party advisers do. As with all Westpac’s lending channels, this may include discounts on their advertised rates on a case-by-case basis,” Marsh said.

Marsh said Dosh didn’t publicly disclose those discounts, so as to maintain the best possible rates for customers.

“Historically when competitive rates have been introduced, other banks have matched them.”

Its annual loyalty cashback – Dosh Streak – will offer homeowners cash payment equal to 0.01% of the loan balance, up to a maximum of 0.20%, over the lifetime of the mortgage with Dosh.

“Streak rewards are exclusively offered by Dosh in addition to any offers, such as upfront cashback, from Westpac NZ. Ultimately, this means more cash is returned to customer pockets,” Marsh said.

“We see this as an offer that will drive competition, potentially leading to lower rates and savings for Kiwis throughout the country.”

Because Dosh home loans are backed by Westpac, customers can apply in minutes and don’t need to visit a branch.

“We’re not a traditional provider. Our digital-only, no-advice approach means Dosh can bring exceptional value to a large number of customers without incurring the normal business costs,” Marsh said.

Helen Ryder, Westpac NZ managing director of consumer banking and wealth, said the bank is excited about helping more New Zealanders achieve their home ownership goals.

“We’re continuously looking for ways to deliver the best experience for both aspiring and existing homeowners, in a highly competitive market.

“Our collaboration with Dosh is another way we’re helping drive innovation in the banking sector, while supporting a fintech to scale up.

“We see this as a key example of the new types of initiatives that will launch as open banking develops in New Zealand.”

Homeowners getting mortgage rates below those advertised isn’t an uncommon practice.

Last year, OneRoof reported that ANZ had cut its one-year discretionary non-advertised mortgage rate to 60 basis points (bps) below its advertised rates on their website.

“Banks don’t post their best rates on their websites – so you’ll need to contact lenders directly to see what deal they can offer you,” Bruce Pitchers, Canstar NZ editor, previously told the Herald.