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Last Article Uploaded: Friday, December 3rd, 9:22PM

Mortgages

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BNZ gets more business from advisers, but that may change

Mortgage advisers are writing an increasing share of BNZ's home loans but that may change following its decision to implement debt-to-income limits on the channel.

Wednesday, November 10th 2021, 7:44AM 3 Comments

In its latest financial results, the BNZ says 28.4% of its mortgage book, which sits at $52.7 billion, has come via mortgage advisers.

Also the flow of business it gets through this channel each six month period has been growing and in the six months to September 30 the number was up to 35.3%

Last year, flows were 31.2%, and in the following period to March this year it was 32.1%. 

However, that may well be impacted by its recent decision to apply a debt-to-income ratio to all deals lodged by advisers.

Recently appointed chief executive Dan Huggins was asked by TMM why the DTIs were put on the broker channel but not on its proprietary branch channel.

He said "we look at it the proprietary channel."

"We are calculating them in our proprietary channel," but they are not being applied as it will do deals outside the DTI limits placed on advisers.

He said putting DTIs on advisers "was our decision."

When asked if he thought advisers would take deals to other lenders he said, "they can choose to do that."

"We are attuned to the fact that that may happen."

According to TMM's mortgage adviser survey BNZ is the least preferred of the four big bank lenders sitting well behind third-placed ASB.

The survey is currently open and you can have your say here

Tags: BNZ DTIs Mortgage Advisers

« BNZ's profit up 74%Calls for responsible lending qualifications for advisers »

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Comments from our readers

On 10 November 2021 at 10:07 am Amused said:
He (chief executive Dan Huggins) said putting DTIs on advisers "was our decision."

As I have said previously on this subject mortgage advisers cannot send business to a lender who is now openly saying to customers "come via a mortgage broker and we are automatically going to limit the amount you can borrow on a new home loan but come to us direct and we'll lend you more".

BNZ encouraging customers to come to them direct means customers can't access the independent advice available from a mortgage adviser. The Financial Markets Authority needs to be made aware of this development. Yes this is a commercial decision made by BNZ but as it appears to directly contradict the direction the financial services industry is supposed to be heading now.

No surprises with TMM mortgage adviser survey results showing BNZ currently ranked right at the bottom. You can only push advisers around so far before the attraction of trail commission pales and the focus returns to dealing with those banks who actually want to have a constructive relationship with our industry. BNZ by their actions to date clearly don’t.
On 10 November 2021 at 11:43 am Gordon Gecko said:
We do have short memories as it was not that long ago that BNZ did away with mortgage adviser channels and encouraged the public to go direct. Maybe the adviser channel is not working for BNZ?
On 10 November 2021 at 4:55 pm valkyrie6 said:
@Gordon Gecko- No its clearly not working.

BNZ coming back to the adviser industry has been a complete disaster, turnaround times blew out to 15 to 20 working days, BNZ was for ever complaining about the poor quality of adviser applications, and they constantly change/upgrade/change again their lending criteria and forms on a weekly basis (nightmare) and this is all after they agreed to make it compulsory for all advisers of a certain dealer group to submit deals via the dealer group's Australian real estate company own CRM system (clearly not working) this dealer group was responsible for “negotiating“ BNZ’s first entry back into the adviser industry. What a complete disaster this has been.

Under the privacy act by enforcing customers private banking information to be loaded onto an Overseas based CRM platform BNZ are not being responsible lenders anyway, as the consumer is still ( yes after all this time) not being told where their personal information is going and who has possession of it, I have gone online to check advisers disclosure statements that belong to this group and after 20 I still cant find one that confirms to the consumer /BNZ customer where their personal banking information is being loaded and who has position of it, am I missing something ?

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Lender Flt 1yr 2yr 3yr
AIA ▲4.60 3.65 4.35 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 4.35 4.69
Avanti Finance 4.55 - - -
Basecorp Finance 5.49 - - -
Bluestone 3.74 3.54 3.89 4.09
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 3.65 4.19 4.25
SBS Bank Special - 3.15 3.69 3.75
Select Home Loans 3.49 3.34 2.99 3.34
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 ▲3.65 ▲4.05 -
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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: 3 December 2021 8:16am

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