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Mortgage Rates Daily Commentary
Friday 20 September 2019  Add your comment
SBS rate cut; OCR preview

Good morning.

As Spring kicks in, another bank has slashed mortgage rates.

SBS Bank’s 3 year rate drops to 3.89%, level with ASB. Check out our rates table here.

Meanwhile, economists have told us they don’t expect the Reserve Bank to cut the Official Cash Rate next week. See why here: [READ ON].

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Bank distribution drives ANZ's mortgage growth

ANZ chief executive David Hisco explains why the bank has managed to continue to grow its residential lending book despite a competitve market environment and the Reserve Bank's LVR restrictions.

Thursday, May 1st 2014, 5:03PM 2 Comments

ANZ has continued to increase its share of the residential home loan market thanks to a growing branch network and success in Auckland and Christchurch.

In the six months to March 31 it has lifted its market share 22 basis points.

ANZ chief executive David Hisco says ANZ is winning the battle for new business in Auckland and Christchurch, writing 31% of all new loans in Auckland and 29% of all new loans in Christchurch.

Its branch network has seen the strongest growth in distribution at the expense of its mobile managers. Now half of all mortgages sales are through branches which previously account for 43% of sales.

Hisco attributes the growth in lending to a number of factors including making increased branch numbers, having more mortgage specialists within branches and giving branch staff discretion to approve applications.“People can wander into a branch and get an answer,” he says.

Mortgage brokers remained static as a distribution channel account for 29% of sales in the 12 months to March 31 last year and this year.

Hisco says brokers remain an important channel for the bank, but ANZ has no intention of changing its broker remuneration model.

There has been talk that one of the big banks will reintroduce trial commissions for brokers. Hisco said it isn’t ANZ.

“We haven’t even looked at it,” he said.

If trails were re-introduced ANZ won’t be first out of the block. “It’s not something I would be leading,” he said.

While ANZ does pay trail commissions in Australia, Hisco noted that there are many things the bank does in Australia that it doesn’t do in New Zealand.

Another of those was the launch of an offset product.

Hisco says they are not really appropriate in New Zealand. “No one has any spare money to put into an offset account.”

The latest results show that ANZ has been living well within the Reserve Bank’s lending restrictions with loans with an LVR of more than 80% making up around 5% of new lending.

Hisco said the restrictions had done their work.

While not categorically saying that they will go anytime soon he is clear that rising interest rates will be a much more effective tool for cooling the housing market.

“Nothing dampens home loans growth like rising interest rates.”

Results Recap
Six months to March 30

  • Net profit after tax $853 million, up 31%
  • Net interest income $1.37 billion, up 5%
  • Net interest margin 2.48%, down 2 bps
  • Cost to income ratio 41.5%, down 370 bpss
  • Mortgage market share, up 22 bps
« LVR rules could be loosened this month: WestpacA week of the expected and unexpected »

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Comments from our readers

On 2 May 2014 at 1:43 pm Amused said:
How's this for a Tui billboard?

ANZ - we live in your world

Yeah right!
On 3 May 2014 at 5:51 pm Richard said:
Be nice if his bank didn't break its neck to be first to raise the interest rates at the first opportunity.

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 ▼4.04 4.49
ANZ Special - 3.65 ▼3.54 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.49 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 ▼3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 ▼3.54 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 20 September 2019 9:30am

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