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Mortgages

Mortgage Rates Daily Commentary
Tuesday 5 November 2024  Add your comment
Banks asses what stressors could destroy capital buffers; Kiwibank lifted its home loans business; Advisers wrote 63% of Westpac's new mortgages

The Reserve Bank has had 13 banks design “severe but plausible” stress tests that would cause their capital to drop below regulatory minimums and the results show that it would take a set of more severe stresses than RBNZ's own stress scenarios. [READ ON]

Kiwibank has lifted its home loans business to now have an 8% market share, with about 64% of its mortgage business originated by advisers. [See here]

Mortgage advisers accounted for 63% of Westpac's new mortgage lending in the year ended September, the bank's chief executive Catherine McGrath told TMMO. [See here]

 

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SBS profit jumps in Dec Qtr despite rising mortgage arrears

In Southland Building Society’s first quarter as a registered bank its net profit jumped sharply, despite a big increase in charges for impaired loans, although its mortgage book shrank slightly.

Monday, March 30th 2009, 9:20AM

by Jenny Ruth

SBS’s net profit jumped 38.8% to $1.9 million in the three months ended December despite its impairment charges rising from $4.5 million at September 30 to $8.3 million at December 31. Its nine-month profit fell 33.9%, reflecting both the increased impairment charge and non-cash losses in the fair value of financial instruments.

SBS didn’t provide any breakdown of the types of loans the impairment charges relate to but finance general manager Tim Loan says they mostly relate to mortgage arrears.

SBS is being more aggressive with impairment charges than normal because of the current poor economic conditions, he says.

SBS’s mortgage book stood at $1.63 billion at December 31, down from $1.64 billion at September 30, although up from $1.57 billion at March 31. That puts SBS as the second smallest mortgage lending bank ahead of HSBC which has yet to release its December quarter general disclosure statement.

Using Reserve Bank figures as a proxy for the market, SBS has a 1.04% share of the mortgage market.

SBS’s loan-to-value ratio (LVR) details show the proportion of loans with LVRs above 90% have jumped from 8.6% at March 31 to 12.2% at December 31, taking loans with LVRs above 80% from 11.9% to 15.7%.

Loan says this reflects the heavy marketing SBS has given the Welcome Home Loans scheme which is 100% guaranteed by the government. SBS’s Welcome Home Loans rose from $117.4 million at March 31 to $174 million at December 31.

« HSBC's profit jumps despite bad loans ballooningKiwibank grabs market share as Aussie banks shut shop »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
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 - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 5.65 5.55 5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 ▼6.75 ▼6.40 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼5.95 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - 6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 ▼6.49 6.49 6.49
TSB Special 7.89 ▼5.69 5.69 5.69
Unity 7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼8.10 6.19 5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.07 5.79 5.69

Last updated: 6 November 2024 2:09pm

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