Mortgage Interest Auction on Trade Me, $1 Reserve

Monday, 19 September 2005, 12:11 am
Press Release: ASB Bank

Media Release

Monday 19 September, 2005

ASB Auctions Mortgage Interest on Trade Me at $1 Reserve

ASB and Trade Me have joined forces under the Trade Me Property banner, with ASB being chosen to be the exclusive preferred provider of home loans to Trade Me's growing membership base.

To mark the partnership ASB will be auctioning Trade Me's first ever home loan interest deal online, giving bidders the opportunity of discounted interest on their home loan for a year.

* Trade Me members will be able to bid on how much interest they would like to pay back over the next 12 months on an ASB home loan worth $100,000.

* The auction will last for 7 days and starts midday today on Trade Me Property (Monday 19 September).

* The home loan auction comprises bidding on one year of fixed interest repayments on a $100,000 standard table mortgage with a 25 year term.

* Bidding starts with a $1 reserve. For example, if the interest on a $100,000 loan was 7.9% ($7900), bidding could start at $1, and grow to $5000, meaning if successful, the bidder would save $2900 on a home loan of $100,000.

* ASB will make up the difference on the interest from its advertised 12 months fixed home loan rate. *

Hugh Burrett, Managing Director, ASB is delighted that Trade Me has chosen ASB as its exclusive provider of home loans, and he believes the relationship will provide real benefits for customers.

"Trade Me members tend to be technology savvy and have shown a clear preference for the simplicity and convenience of doing business and transacting online. This fits very well with ASB's technology leadership position in financial services. The huge growth of web-based communication and banking shows that increasingly, this is how many people prefer to research product information and transact. Listing properties for sale online is a logical extension to the services Trade Me already provides, and ASB is a natural choice to provide online financing options to their members."

"Trade Me is New Zealand's fastest growing business and the online auction of a home loan is the first of a series of initiatives ASB will deliver to help make Trade Me Property the most innovative and compelling channel for selling and buying properties."

Sam Morgan, general manager of Trade Me, said that he was stoked to be partnering with ASB.

"It's really simple. We think ASB is the bank that's most committed to online banking and online commerce. You can see that in their two factor authentication for internet transactions and also in their same day clearance of intra bank transfers."

"Trade Me Property is only two months old, but is already the most visited real estate site in New Zealand. We're building our partnership base carefully, aligning ourselves with brands who share the same approach to business and innovation as us. ASB has put together a great online service and we have some great ideas for growing the relationship."

ASB continues to remain one step ahead of the competition, recently winning the TUANZ Innovation Awards - Financial Services Award 2005 for the third time in four years. Trade Me is New Zealand's largest online marketplace with 1.2 million members who undertake over 20 million auctions a year.

ENDS

* ASB's lending criteria and early adjustments apply. A low equity fee may also apply. Terms and conditions are available on request.

www.trademe.co.nz/Trade-me-property/

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