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Non-bank mortgage lending soars in 2018

Non-bank mortgage lending volumes jumped by more than $500 million last year, according to newly-released data, which underlines the growing prominence of alternative lenders.

Friday, February 1st 2019, 8:55AM

Data from the Reserve Bank shows New Zealand non-bank mortgage lending hit $2.70 billion in December, up from $2.17 billion in January, as borrowers seek alternative mortgage financing in the face of tightening from the big banks.

Non-bank mortgage volumes are at their highest levels since April 2012, when non-banks had $2.74 billion in mortgage volumes. It comes after a year of resurgence which has seen the likes of Bluestone come back into the market and others, such as Resimac, expand their product offering for borrowers.

Non-banks account for just a slither of total mortgages in New Zealand, however. Total mortgage lending hit $258.6 billion, with registered banks making up $255 billion of that number.

Nevertheless, the figures show non-banks have made a solid comeback since the aftermath of the financial crisis, when many pulled out of New Zealand or went out of business. 

Non-banks are set to continue their charm offensive with mortgage advisers this year. Advisers are frustrated with tough servicing tests, restrictions on interest-only lending, and harsh treatment of investors with large portfolios, and have begun to view non-banks as a credible alternative.

New Zealand's biggest non-banks have joined up to raise awareness about their products, hosting road shows across the country. Nine non-banks, Avanti, Bluestone, First Mortgage Trust, Heartland, Liberty, NZCU Baywide, Resimac, Southern Cross Partners, and Spotcap, are bringing their "speed dating format" to Hamilton on February 26, and Christchurch on February 28.

 

Tags: non-bank lenders risk management

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.39 4.35 4.55
ANZ Special - 3.89 3.85 4.05
ASB Bank 5.70 4.45 4.39 4.55
ASB Bank Special - 3.95 3.89 4.05
BNZ - Classic - 3.89 3.95 3.89
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Lender Flt 1yr 2yr 3yr
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 4.60 4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.79 3.79 3.89
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.60 4.60 4.84
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 3.85 3.85 4.09
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 4.89 4.99 -
Resimac 5.30 4.86 ▼4.14 ▼4.19
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.89 3.99 3.99
Sovereign 5.80 4.45 4.39 4.55
Sovereign Special - 3.95 3.89 4.05
The Co-operative Bank - Owner Occ 5.65 ▼3.89 ▼3.95 4.05
The Co-operative Bank - Standard 5.65 ▼4.39 ▼4.45 4.55
TSB Bank 5.69 ▼4.45 4.49 ▼4.55
TSB Special - 3.95 3.99 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.89 3.85 4.05
Median 5.80 4.45 4.39 4.19

Last updated: 19 June 2019 9:13am

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