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: Tuesday, June 2nd, 6:26PM

Mortgages

Mortgage Rates Daily Commentary
Tuesday 2 June 2020  Add your comment
Lending policies changing rapidly; TSB price match

Bank lending policies are changing at their fastest rate since the GFC, with huge variations between major lenders, according to one Auckland adviser: [READ ON]

No new rate changes today, but in case you missed it last week, TSB has vowed to match any home loan rate from the big four banks: [READ ON]

rss
Latest Headlines

BNZ banks on brokers

BNZ has produced a “very strong” result in the six months to March 31, with net profit up almost 28% to $502 million for the period. Chief executive Anthony Healy talks to TMM Online about BNZ's plans to return to the broker market after a 12-year absence.

Thursday, May 7th 2015, 5:13PM

The bank hasn’t grown market share across its home loan and deposit books but has managed to increase income.

BNZ chief executive Anthony Healy said the “very strong result is a result of our focus on the core franchise.”

He said there has been good and careful cost management which has seen the cost to income ratio fall from 40.2% to 39.4%

“The cost to income ratio is in a good space,” he said.

BNZ’s net interest margin was up from 2.34% in September to 2.41% in this period even though more customers had moved to fixed rate home loans which had lower margins.

Overall its lending margin had come down 13 basis points because of competition from other banks, but that had been offset by by funding benefits that includes rolling off some of the expensive GFC funding and repricing some of the lower quality deposits.

“Our earnings on capital have improved that’s probably the single biggest thing that’s driving the margin improvement,” chief financial officer Adrienne Duarte said.

She said in a rising interest rate environment the bank earns more on its capital, and BNZ had “picked the right time to move from two year to three year investment rate.”

Total housing lending rose from $30.6 billion to $31.4 billion however its share of the market remained flat at 15.8%.

Healy said that is a good result as the bank was only competing in 75% of the market. As it moved into the broker space he expected to see the bank’s market share increase.

However he would not put numbers around how much it is forecast to grow.

Healy said he expects BNZ’s recent re-entry into the mortgage broker market to boost the bank’s home loan performance, and to position the bank strongly in the high-growth Auckland market.

“We know that 25% of customers choose to use a broker, so our decision made strategic and commercial sense. It extends our reach and will enhance BNZ’s capacity to help more New Zealanders to buy their own home.”

He said BNZ was “skewing investment to Auckland where there’s more growth and we are a bit under our natural share in Auckland.”

Around 40% of BNZ’s mortgage portfolio was in Auckland and Christchurch comes in at 15%.

The portion of lending to the over 80% LVR market has shrunk significantly from $5,049 million in September 13 to $3,403 million which represents 10.5% of its overall book.

Tags: Anthony Healy BNZ

« Chinese banks creeping into lending marketMore banks call for OCR cuts »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.29 3.45 3.85
ANZ Special - 2.79 2.95 3.35
ASB Bank 4.45 3.35 3.19 3.85
ASB Bank Special - 2.85 2.69 3.35
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 2.79 ▼2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.39 ▼3.29 ▼3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 2.80 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.80 2.89 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 4.40 2.95 2.95 3.69
Kainga Ora 4.43 ▼3.29 ▼3.39 ▼3.85
Kiwibank 4.40 3.74 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 2.65 2.79 3.25
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 3.75 3.99 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 3.49 3.45 3.39 3.69
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 2.99 3.05 3.69
The Co-operative Bank - Owner Occ 4.40 ▼2.79 ▼2.95 ▼3.39
The Co-operative Bank - Standard 4.40 ▼3.29 ▼3.45 ▼3.89
TSB Bank 5.34 3.59 ▼3.59 4.19
TSB Special 4.54 2.79 ▼2.79 3.39
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.79 ▼2.69 ▼2.79
Median 4.55 3.32 3.39 3.69

Last updated: 28 May 2020 10:38am

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
 
Site by Web Developer and eyelovedesign.com