Kiwibank not a threat

Mortgage brokers are no longer considering Kiwibank a threat, despite the fact that it has some of the lowest home loan rates in the market.

Brokers speaking at a forum session at the Mortgage Brokers Association's recent conference said that Kiwibank was suffering from delivery and service problems.

A number of brokers had mystery shopped the bank and found that service was poor as was the lack of home loan knowledge shown by staff.

The comments came at about the same time Kiwibank released figures saying it had lent $43 million in mortgages in the year up to June 30.

Some brokers have been annoyed that Kiwibank won't sell its home loans through brokers.

Matthews says that the bank may never use brokers because the cost of distribution is too high for an organisation which is offering home loans with some of the lowest rates in the market.