KEY POINTS:
GE Money says the fee it is waiving for New Zealand mortgage customers who wish to break their home loan agreements early is only one of a number that it charges, and others will still apply.
In a statement issued last week the company, which owned Wizard Home Loans here and in Australia, said it would "waive fees to assist home loan account holders to move to another lender".
GE Money has sold its Australian Wizard operation to Commonwealth Bank of Australia-owned Aussie Home Loans but is administering its Wizard loan book in New Zealand until it winds down.
In its statement, GE Money said it would waive its Deferred Administration Fee (DAF) for three months from March 1 for home loan customers to assist their move to another lender.
The Herald understands a number of GE Money clients contacted the
company yesterday inquiring about the offer and were disappointed to learn the company was not waiving break fees.
Yesterday, GE Money spokesman Tristan Everett said the DAF was just one of the fees a person will normally be charged if they are discharging a loan within a specific period.
Fixed loans also had a "break cost" which was not charged on variable loans.
Meanwhile, GE Money's statement last week informs New Zealand
customers of a 50 basis point cut for variable rate borrowers or 25 basis points for those customers whose loans were arranged through a third party.
