Aera Unveils New Zealand's Highest Rate Overnight Savings ...

Future first homeowners can now access competitive and flexible savings products through Aera, a financial services platform launching today exclusively focused on New Zealand’s locked-out first home buyer market.

Aera is not a registered bank, it’s a financial services platform going beyond banking to help Kiwis grow their deposits faster and get into their own home sooner. More than 500 New Zealanders have registered their interest with the banking alternative at launch.

Early access to Aera’s Deposit Accelerator™ opens today offering an overnight account targeting 5.95% annual returns, and a 30-day savings account targeting 6.45%.

An Auckland couple saving for a median first home deposit using Aera’s overnight account would reach the 20% threshold 335 days faster, saving almost $130,000 on their purchase price, than in an on-call savings account at one of New Zealand’s major banks*.

The Deposit Accelerator is part of a broader set of digital financial services delivered entirely via the Aera mobile app. Aera offers the ability to instantly open multiple everyday or Deposit Accelerator accounts, make bill payments, and transact anywhere in the world with a member’s Visa card. Apple and Google Pay are soon to come.

Founded by entrepreneur Derek Handley, Aera is backed by private capital firm Still, Icehouse Ventures, Whakatupu Aotearoa Foundation and the Aera Foundation.

“New Zealand needs more innovation for first home buyers where incumbents continue to make superprofits off of the status quo,” says Handley.

“Aera is making a combination of financial products available to aspiring first home buyers, so they can get into their first home faster,” says Handley.“History has shown that we can’t wait around for change to happen just because the housing market is taking a breather. We need new solutions to work within a broken system.”

Economist and author Tony Alexander says the upwards trending housing market benefits those who enter sooner.

“With record migration and long-term demand, history has shown that house price growth will continue to move further away for families without a foot in the door,” says Alexander.”New Zealand’s housing market is equalising after an aggressive period of price growth, however the long term trajectory continues to be upwards.” says Alexander.

The bank of Mum and Dad is currently the fifth largest home loan lender in New Zealand, but is only enjoyed by some. Of the 500 Kiwis to pre-register for Aera, more than 80% are planning on buying their first home with no family support.

Later this year Aera will introduce the Ownership Accelerator™, specifically aimed at the large group of New Zealanders who are earning too much to qualify for available government lending programmes, but can’t save fast enough for a deposit on their own. This will give members the opportunity to boost their deposit capacity, or live in a home they will buy over time.

The Aera team includes co-founder James Abbott, who brings long-running experience in the financial services industry at Westpac and as COO of Laybuy up until their $250m ASX listing, and Julie Mayer, previously head of marketing at Homes.co.nz, who is leading Aera’s brand and member engagement.

First home savers can apply to open their Deposit Accelerator on Aera’s website from today.

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