tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, May 25th, 1:32PM

Mortgages

Mortgage Rates Daily Commentary
Thursday 23 May 2024  Add your comment
The good and the bad news from the OCR announcement

The Reserve Bank's latest monetary policy statement had good news and bad news for residential property owners. [READ ON]

How to stay safe from cyber attacks [Details here]

rss
Latest Headlines

Few think BNZ's decision good

BNZ's decision to withdraw from the important broker market has people scratching their heads.

Wednesday, May 7th 2003, 11:02PM

by Jenny Ruth

Bank of New Zealand’s decision to cease dealing with mortgage brokers has created little angst in the market, mainly because its broker-sourced business is so small.

But few think it’s a good decision. Massey University centre for banking studies head David Tripe says the two most successful banks in the mortgage market in recent years have been ASB Bank and National Bank.

"They haven’t done that by ignoring mortgage brokers."

Brokers now account for about 29% of all mortgages written in New Zealand.

BNZ already excluded brokers from access to its Global Plus and Flybuys programs. BNZ Personal financial services general manager Chris Black acknowledges BNZ is at "the lower end" of the broker remuneration scale paying a flat 0.65% of the loan amount in upfront commission in a market where such commissions range from 0.55% to 0.8%. It is also one of the few that don’t pay trail commissions which range from 0.15% to 0.25% a year throughout the life of a loan.

Eyebrows were raised that the bank claims as much as 5% of its mortgages are broker-sourced – while only BNZ knows the figure, most guesstimates would have it less than 1%.

"Five percent in most businesses isn’t significant," Black says, confirming the figure.

He says the decision was the result of a strategic review conducted over three to six months. "Our view is that it’s in the best interests of customers that we deal directly with customers."

Surveys of customers show customers like it that way, Black says.

"It’s convenient for customers to come to us directly. We sit down and talk with them about their whole financial picture in a one-stop sense," he says. This ranges from banking arrangements through to "risk mitigation" or insurance. "Brokers only deal with the mortgage piece primarily."

Black dismisses suggestions that BNZ was finding brokers’ service demands too difficult to meet. "We don’t see it like this. We pride ourselves on the service that we provide, but we like to get close to customers. Business is about standing for something and being clear about what your proposition is and what it’s not."

Mortgage Brokers Association chairman Brian Berry says BNZ had under-serviced brokers. "There hasn’t been a lot of support for the broker channel. They’ve struggled for support from senior management."

Berry says that despite BNZ’s decision, brokers will still need to keep abreast of what the bank is offering to ensure their customers get the best deals available. He doesn’t think this will be difficult without BNZ’s support.

Black says the market share figures show BNZ’s strategy is working: "Our natural market share is 15%. In the December quarter...we wrote 18.6% of all mortgages in New Zealand," he says. Preliminary figures for the March quarter also show BNZ wrote more than its market share, he says.

Tripe says the bank’s market share has remained fairly constant between 15% and 15.5% for several years.

« March housing consents hit a 26-year highDid the RBNZ get it wrong? »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 7.29 6.59
SBS Bank Special - 7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 20 May 2024 10:01am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com