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: Saturday, September 26th, 8:20AM

Mortgages

rss
Latest Headlines

Kiwibank set to enter adviser market

Kiwibank says it will be fully entering the mortgage adviser market later this year.

Monday, February 24th 2020, 6:00AM 1 Comment

Kiwibank chief executive Steve Jurkovich says the bank is in the process of setting up a fully-fledged broker unit and expects it to be up and running later this year.

"By the end of this financial year I expect us to have a strong, competitive, dedicated broker unit."

"We are three to six months away from being out there in full force."

He says customers have made it clear that they want to use mortgage advisers. "The market has spoken. They really value what third party brokers and intermediaries offer. It's here for good."

Currently, third party distribution is a pretty small proportion of Kiwibank's business, he says, but "I could see a time where over the next couple of years it would easily be 20% of our flows".

"Part of our strategy is to make sure we are supporting [mortgage advisers]."

He says it is very important the bank has the right service proposition for the broker.

"What I don't want to do is let people down."

Kiwibank has appointed a head of its broker unit and has done a global search for tools that the bank can invest in which would make the life of the customer, the broker and the bank better.

"We've got some interesting ideas there and they need to be worked up with third party."

He says technology will play a big part in the proposition.

Kiwibank currently originates mortgages through its own branch network and through its fully-owned subsidiary NZ Home Loans. It doesn't disclose the split between the two channels, and when asked again at its half year results last week declined to disclose the figure.

"I wouldn't go into a breakdown. I will pass on that one," Jurkovich said when asked.

In the six months to December 31 NZHL "played a very important part" in helping Kiwibank grow its lending book.

"They are a significant contributor."

During the period their mortgage book grew by $1.78 billion to $19.63 billion. Jurkovich says this is well ahead of system growth.

System growth is sitting around the 4% market. He says if Kiwibank's growth was annualised, and with all things being equal, the bank would be at 8%.

Another way of looking at it is that Kiwibank accounted for 10.1% of bank lending in calendar year 2019.

The growth has come from competitive pricing, and it had "some offers that have had people talking. Current promotions of Fiji trips have contributed too".

Kiwibank has been "working really hard on just retention".

"More customers are saying we will stick with you," he says.

In every week, across the six month reporting period, it has grown the number of borrowers.

Tags: Kiwibank Mortgage Advisers Steve Jurkovich

« Kiwibank lending rises, profit fallsSouthern Cross loan book nears $225 million »

Special Offers

Comments from our readers

On 26 February 2020 at 8:57 am valkyrie6 said:
Yeah, I’m sure most mortgage brokers would like to have another main bank lender available for their customers to choose from. Kiwibank’s home loan policy is reasonably competitive.

However, we wouldn’t want Kiwibank to do what BNZ are currently doing to mortgage brokers i.e. offering home loan preapprovals up to 80% LVR to non-bank customers whilst telling brokers at the same time these types of approvals are not available. “Not available through mortgage brokers” that’s what BNZ used to do and advertise on TV many years ago…

I’ve spoken to a BNZ branch twice in the last two weeks and in each case have been assured by a staff member there that BNZ is open for business to non-bank customers seeking home loan preapprovals up to 80% LVR. BNZ have communicated again to mortgage brokers today that they are closed to these types of applications.

Either BNZ want to deal with mortgage brokers or they don’t. Personally, I’d rather send business to the lenders that have always supported the broker channel as opposed to a lender who only wants to deal with brokers when it feels like it.
Would also be nice if dealer groups stood up for their members every now and then to add a little more value that a flash CRM.

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 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 3.85 3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 ▼2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 3.05 3.19 3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.69 2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.00 3.13 3.02

Last updated: 21 September 2020 10:48am

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