Mortgage Holders Increased Bank Switching in December

Those with mortgages in New Zealand shifted a record $5.8 billion of debt between banks in December, significantly surpassing the previous record of $2.6 billion set in July. This surge was driven by banks competing with attractive cashback offers to attract new customers. Despite the notable increase in switching, it reflects a broader trend in a market where mortgage holders owe over $380 billion to banks. Analysts, like Kelvin Davidson from Cotality New Zealand, noted that such competition was expected.

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