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Mortgages

Mortgage Rates Daily Commentary
Thursday 23 September 2021  Add your comment
Co-op rate increases; Smaller hikes to follow next month; Full licensing latest

The Co-operative is the latest bank to increase pricing on six month to five year terms today. Its one year special goes to 2.85%, level with ASB and Westpac.

Banks are poised to raise interest rates further next month despite a recent wave of increases in recent weeks: [READ ON]

Slow progress so far on the journey towards full licensing. Here's what the FMA said after approving 80 FAP licenses: [READ ON]

 

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Kiwibank continues break neck growth

The government-owned Kiwibank's profitability and its mortgage book continued their break-neck pace of growth in the June quarter.

Thursday, August 20th 2009, 11:11PM 2 Comments

by Jenny Ruth

The bank's mortgage book grew by $792 million to $7.79 billion in the three months ended June 30, its latest general disclosure statement shows.

Using Reserve Bank figures as a proxy for all lending on mortgages by registered banks, that means Kiwibank accounted for a staggering 44.8% of the $1.77 billion of new lending in the quarter.

And yet, again using Reserve Bank figures, Kiwibank's market share at June 30 was just 4.9%, up from 4.45% at March 31 and 3.36% in June last year.

In the year ended June 30, Kiwibank's mortgage book grew by $2.69 billion, accounting for 38.1% of all mortgage lending by registered banks.

Not surprisingly, this explosive growth has had to be funded by additional capital. Kiwibank's parent, New Zealand Post, contributed a further $20 million in April and the bank also raised $60 million in "Tier ll" capital through a subordinated debt issue in September 2008.

Kiwibank's capital adequacy ratio was 10.5% at June 30, well above the Reserve Bank's minimum 8%.

While Kiwibank says it is now moving towards being self-funding, a bank spokesman says that doesn't necessarily rule out further capital injections if the bank's growth requires it.

Kiwibank's net profit in the three months ended June 30 rose to $12.4 million, up 83.4% from the same quarter a year earlier. That took annual net profit to $52.5 million, up 42.7% on the previous year. Both the latest quarterly and annual profit figures are before a one-off $11.1 million restructuring gain.

The profit figures are after a $4.6 million increase in charges against profit for impaired loans in the three months ended June 30, taking the annual impairment charges to $14.3 million compared with just $4.1 million in the previous year.

Of Kiwibank's $669.6 million of mortgages with loan-to-valuation ratios (LVRs) above 90%, $220.9 million were part of the government's Welcome Home scheme. Kiwibank also had $814.6 million of home loans with LVRs between 80% and 90% but says all loans with LVRs above 80% which aren't Welcome Home loans are covered by loan mortgage insurance.

 

Tags: Mortgage Rates

« First home buyers' scheme expandedBNZ coy on whether it will return to brokers »

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Comments from our readers

On 21 August 2009 at 9:20 pm why said:
Why, Kiwibank decreased rates faster than other lenders, and increase rates slower than other banks! in fact only a litter different interest rates compaired, but more new borrowers are going with Kiwibank!
On 28 August 2009 at 6:49 pm Henk said:
It's our bank we should support them
All what those OZ banks are doing is filling their pockets with our money and take it across the ditch.
Commenting is closed

 

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 ▲2.85 ▲3.25 3.55
ANZ 4.44 ▲3.20 ▲3.59 ▲4.00
ANZ Blueprint to Build 1.68 - - -
ANZ Special - ▲2.60 ▲2.99 ▲3.40
ASB Back My Build 1.79 - - -
ASB Bank 4.45 ▲2.85 ▲3.25 3.55
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▲2.85 ▲3.25 ▲3.55
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 ▲3.45 ▲3.85 ▲4.15
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 2.35 2.75 3.05
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 ▲3.80 ▲4.00 4.34
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 ▲2.95 ▲3.15 3.49
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.99 3.39 3.59
SBS Bank Special - 2.49 2.89 3.09
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.65 - -
The Co-operative Bank - Owner Occ 4.40 ▲2.85 ▲3.25 ▲3.49
The Co-operative Bank - Standard 4.40 ▲3.35 ▲3.75 ▲3.99
TSB Bank 5.34 3.35 3.75 4.05
TSB Special 4.54 2.55 2.95 3.25
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 ▲3.45 ▲3.85 4.09
Westpac - Offset 4.59 - - -
Westpac Special - ▲2.85 ▲3.25 3.49
Median 4.54 2.95 3.25 3.49

Last updated: 23 September 2021 8:11am

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