By PAULA OLIVER
An Australian research company famous for rating mortgage deals on a five-star scale has set up shop in New Zealand to give banks here a similarly testing time.
Cannex, a financial services researcher, evaluates mortgage offerings from all the major banks and gives them a rating according to what
features they offer as well as the cost.
The local office of Cannex has been set up by former banker Steven Anderson, who said that credit card ratings would also be available down the track.
The five-star mortgage rating system evaluates each offering by allocating it points.
The costs of a mortgage, made up of fees and rates, are given a heavier weighting than the features on offer, but the overall rating takes everything into account.
The costs of a mortgage are evaluated using an annual average percentage rate, which includes both rates and fees, and goes back eight months.
Anderson said the important thing for consumers was having the right type of mortgage for their needs.
"It's not just about interest rates. It's more than that," he said.
Cannex's first ratings of New Zealand mortgages have been completed and ANZ and Westpac came out tops for home loans and residential investment deals, both earning five-star ratings.
But the interest rate landscape has changed since the data was collected, and some banks, including Westpac, have opted to raise rates.
Cannex's next study will be out in May, and a credit card rating should be completed in June.
The company's Australian ratings have become high profile in the past decade.
