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Mortgages

Mortgage Rates Daily Commentary
Wednesday 11 December 2024  Add your comment
Meaningful difference seen as coming from Kiwibank’s capital raise; Profit for specialist lenders falls again

Starting with institutional investment and an eventual IPO is an excellent start for turning Kiwibank into a meaningful disruptor, David Cunningham Squirrel Mortgages chief executive says. [READ ON]

For the second year in a row profit for non-bank lenders has fallen. [Check out what KPMG says]

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Kiwibank's home loan business growing

Kiwibank's results for the six months ended December 31 show its home loan book had grown to $262 million compared with only $43 million at June 30.

Sunday, March 16th 2003, 9:34PM

by Jenny Ruth

That’s an average of $36.5 million a month for the six months. As Kiwibank said in mid-September that its home loan book was "more than $100 million," that means growth in the last three-and-a-half months accelerated to average about $46.2 million a month.

Chief executive Sam Knowles says Kiwibank’s "aggressive" position in the home loan market is paying off and the momentum is continuing to increase.

Kiwibank’s current floating rate loan rate is 6.95% compared with 7.85% for four of the five major home lenders and National Bank’s 7.8%.

"A floating rate home loan customer with a loan of $150,000 is saving more than $1,300 a year with Kiwibank," Knowles says.

Kiwibank’s fixed term rates aren’t nearly as competitive. It is currently charging 6.85% for a three-year fixed rate loan compared with 6.95% at four of the five majors and Westpac’s 7.1%. For a loan fixed for five years, Kiwibank is currently charging 6.99%, above the 6.95% rate charged by ANZ Bank and National Bank, but below ANZ Bank’s 7.15% and Westpac’s 7.25%.

Kiwibank opened 69 branches in the six months, bringing the total to more than 280, about 80 more than its nearest rival, Westpac.

Customer numbers increased by 40,000 to 95,000 in the six months and that figure recently passed 100,000. Growth in the bank’s retail deposits is also accelerating, jumping by $200 million to $286 million.

"We are still signing up about 500 customers every business day, which is quite remarkable," Knowles says.

Kiwibank made a $6.5 million loss for the six months with compared with $10.2 million for the four-and-a-half months ended 30 June. The government-owned bank aims to become profitable within three years.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 12 December 2024 9:22am

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