tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo close ad
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: Thursday, December 9th, 9:18AM

Mortgages

rss
Latest Headlines

Avanti gets good report card

Avanti Finance’s move towards residential loans and its strong broker support augur well for the company, a recent report says.

Tuesday, November 29th 2016, 12:58PM

Ratings agency S&P recently confirmed Avanti’s BB credit rating, reflecting the company's “very strong capitalisation levels and sound and defendable business model, underpinned by a well-articulated and executed strategy.”

“Avanti's business model is transitioning toward a higher proportion of residential mortgage loans within its business mix--a business line that we consider highly commoditised and competitive.”

S&P says there is “a lack of meaningful competition in the non-bank sector within Avanti's chosen target market and adopted points of distribution – third party distribution.”

It says Avanti has a long-standing and successful history with brokers which augurs well the company.

Avanti's business position strength is broadly in line with the industry average for non-bank financial companies in New Zealand.
S&P says Avanti is targeting first secured residential mortgages at close to 50% of stock during the next three years, up from 35% currently, with the remainder comprising a mix of motor vehicle loans, other consumer and property loans, and some small to medium-size enterprise loans.

“We also expect the finance company's operating revenue mix to shift toward a higher proportion of net interest income as a result of the forecast growth in residential mortgage lending (currently 65% of operating revenues), which we consider as having good recurring characteristics and forecast to increase toward 75% in the next three years.

“Growth forecasts are strong for the next three years, with compound annual growth at more than 30%.”

S&P notes Avaniti has received $7 million of new committed capital from existing and new shareholders to help fund growth.

It also says banks have been providing a good level of support. “To date, the finance company has had little trouble extending the support of its long-dated warehouse funding, and we currently foresee little risk of this changing in the next 12 months.”

Tags: Avanti S&P

« Heartland Bank to re-enter residential mortgagesSBS grows and adjusts commission levels »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.60 3.65 ▼4.15 4.69
ANZ 4.79 4.25 4.95 5.35
ANZ Blueprint to Build 2.03 - - -
ANZ Special - 3.65 4.35 4.75
ASB Back My Build 2.29 - - -
ASB Bank 4.60 3.65 ▼4.15 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone ▲4.09 ▲4.29 ▲4.86 ▲5.09
BNZ - Classic - 3.65 4.35 4.69
BNZ - Mortgage One 5.15 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Rapid Repay 4.95 - - -
BNZ - Std, FlyBuys 4.95 4.25 4.95 5.29
BNZ - TotalMoney 4.95 - - -
CFML Loans ▲5.35 - - -
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 - - -
First Credit Union Special 5.85 3.59 4.09 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 5.25 4.00 4.60 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 4.15 3.29 3.85 4.19
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 4.25 4.54 5.20 5.54
Kiwibank - Offset 4.25 - - -
Kiwibank Special 4.25 3.69 4.35 4.69
Liberty 4.84 - - -
Nelson Building Society 4.95 4.29 4.85 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 3.54 3.89 4.09
SBS Bank 4.79 ▲3.95 ▲4.49 ▲4.85
SBS Bank Special - ▲3.45 ▲3.99 ▲4.35
Select Home Loans ▲4.09 ▲4.29 ▲4.86 ▲5.09
The Co-operative Bank - First Home Special - ▲3.45 - -
The Co-operative Bank - Owner Occ 4.75 ▲3.65 ▲4.35 ▲4.69
The Co-operative Bank - Standard 4.75 ▲4.15 ▲4.85 ▲5.19
TSB Bank 5.34 4.09 4.74 4.99
TSB Special 4.54 3.29 3.94 4.19
Unity 5.65 4.15 4.60 -
Wairarapa Building Society 4.99 ▲3.85 ▲4.25 -
Lender Flt 1yr 2yr 3yr
Westpac 5.09 ▲4.29 4.95 5.29
Westpac - Offset 5.09 - - -
Westpac Special - ▲3.69 4.35 4.69
Median 4.77 3.65 4.35 4.69

Last updated: 7 December 2021 9:06am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com