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Kiwibank's mortgage book grows fast but momentum slips

The government-owned Kiwibank's mortgage book continued to grow much faster than its market share in the March quarter but its momentum appears to be slowing.

Thursday, May 31st 2012, 4:53PM

by Jenny Ruth

However, the bank's 4.99% one-year fixed "special," which garnered significantly more than $200 million in new business between April 26 and May 31, is likely to boost its June quarter figures.

The loan-to-valuation ratio (LVR) table in Kiwibank's March quarter disclosure statement shows its mortgage book grew by $225 million to $11.43 billion in the three months, down from the $260 million growth in the December quarter.

It's also Kiwibank's smallest quarterly increase since the December quarter of 2010 when its book grew by $194 million.

In the year ended March, Kiwibank's mortgage book grew $1.1 billion, slightly more than the $1.03 billion growth the previous year.

Assuming Reserve Bank data will prove a reasonable proxy for the mortgage data shown in banks' disclosure statements, that means Kiwibank accounted for 17.6% of mortgages written by registered banks in the three months ended March and its share of market rose to 6.66% from 6.58% in December and 6.17% in March last year.

It doesn't appear Kiwibank's growth is due to any relaxation in credit standards: the part of its books with LVRs of 80% or less is where most of the growth came from, $227 million, while mortgages with LVRs of 90% or more shrank by $37 million.

Mortgages with LVRs of 80% or less account for 82.2% of Kiwibank's mortgage book while loans with 90% or more LVRs account for 3.4%.

Kiwibank's net profit for the quarter jumped to $23 million from just $1 million in the same quarter last year which had been hit by a blowout in charges for bad loans due to Christchurch's February 22, 2011 earthquake.

Charges for bad loans in the latest quarter fell to $9 million compared with $26 million in the year-earlier quarter. A 25% jump in net interest income to $65 million also boosted net profit in the March quarter.

 

« NZF Group posts $16.2 m annual lossReserve Bank data show mortgage cuts stimulating activity »

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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 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
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 - 7.24 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 7.84 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 - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 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 6.69 6.45 6.19
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 6.75 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 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 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 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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