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Would-be first home buyers can now access services and rates typically reserved for millionaires in a new 'bank alternative' service.
Tech entrepreneur Derek Handley's new venture Aera offers annual savings rates of 6.45 percent and 5.95 percent, though not in a traditional savings account.
As Aera is not a registered bank, the money would instead be invested in corporate bonds, managed funds and cash accounts.
Founder Derek Handley said Aera was 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 super profits off of the status quo," Handley said.
He said people saving for their first home were often racing to save as much money as possible for their deposit despite ever-increasing costs, with house prices trending upwards over time.
"Aera is making a combination of financial products available to aspiring first home buyers, so they can get into their first home faster.
"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."
Aera was the first of its kind in New Zealand and the introduction of open banking mid-next year will fuel innovation in the sector, Handley said.
