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, October 3rd, 8:14PM

Mortgages

rss
Latest Headlines

Kiwibank grows its share of new mortgage lending at more than double its market share

The government's Kiwibank accounted for 19.2% of net new mortgage lending in the June quarter and for 18.8% of new lending in the year ended June.

Wednesday, September 4th 2024, 9:03AM 1 Comment

That has lifted Kiwibank's market share to almost 7.6% at June 30, up from less than 7.2% a year earlier, according to the Reserve Bank's bank financial strength dashboard data.

Kiwibank's mortgage book at June 30 stood at $26.95 billion, up from $24.55 billion a year earlier.

It's unlikely a coincidence that Kiwibank's growth spurt followed the July 2023 additional capital of $225 million it received from the proceeds of the sale of Kiwi Wealth, and chief executive Steve Jurkovich acknowledged as much when Kiwibank reported its annual results last month.

While ASB Bank continued to lift mortgage lending to $586.5 million in the June quarter from $380.7 million in the March quarter, it is still lending at a rate less than its market share, accounting for 17.7% of net new mortgage lending by registered banks in the latest quarter.

ASB's market share at June 30 was 20.9%, down from 21.6% a year earlier, because its net new mortgage lending in the year of $503 million represented only 3.9% of total new mortgage lending by banks in the year.

ASB's owner, Commonwealth Bank of Australia chief executive Matt Comyn, was quoted last year as fretting about  margins, particularly in NZ, and it's clear that was ASB's motivation in stepping back from the mortgage market last year and failing to offer competitive mortgage lending rates.

New Zealand's largest bank, ANZ, also grew its mortgage book at a slower pace than its market share in the latest quarter, accounting for 28.2%, or $931.8 million, of net new lending in the June quarter compared with its market share of 30.4% at June 30.

However, ANZ's annual growth in mortgages of nearly $4.49 billion accounted for about 35.1% of net new mortgage lending by registered banks in the year ended June 30.

ANZ's mortgage book stood at $108.15 billion at June 30, up from $103.66 billion a year earlier.

National Australia Bank-owned Bank of NZ is growing mortgage lending faster than its market share of 16.8% at June 30, with its net new lending of $777.2 million in the June quarter accounting for 23.5% of banks' total new mortgage lending in the quarter.

In the year ended June, BNZ lent nearly a net $2.43 billion, accounting for 19% of net new bank mortgage lending, and taking its mortgage book to $59.59 billion, from $57.16 billion a year earlier.

Westpac pulled in its horns in the June quarter, its net new mortgage lending of $246.5 million accounting for just 7.5% of net new lending by registered banks in the quarter compared with its market share of 18.9% at June 30.

Westpac was somewhat more active in the year ended June, securing $1.77 billion in net new mortgages, or 13.9% of total net new mortgage lending by registered banks.

Westpac's mortgage book stood at $67.21 billion at June 30 compared with $65.44 billion a year earlier.

Tags: Kiwibank

« [Podcast] TMM Ep3 Adrienne Begbie - ProspaFMA to investigate mortgage advice sector »

Special Offers

Comments from our readers

On 5 September 2024 at 1:31 pm Amused said:
Might be worth looking in more detail at some of the new mortgage lending Kiwibank has been writing in recent times i.e. I’ve seen them approving loans that no other main bank lender would touch i.e. self-employed builder building an investment property. Basically, Kiwibank are capitalising interest only on these loans, so the builder does not have to fund any repayments at all while self-building and earning no income , it’s virtually a second tier asset loan. This will eventually catch up with Kiwibank but it’s alarming given that taxpayer money is been used to fund them. Having just had a recent conversation with another main bank business banking manager around this subject he’s baffled as to how Kiwibank are able to secure approval for some of mortgage lending that they are writing.

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 - Back My Build 5.94 - - -
AIA - Go Home Loans 8.49 6.35 5.79 5.79
ANZ 8.39 ▼6.79 ▼6.29 ▼6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼6.19 ▼5.69 ▼5.69
ASB Bank 8.39 6.35 5.79 5.79
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.90 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - ▼6.19 5.79 5.79
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 8.44 - - -
BNZ - Rapid Repay 8.44 - - -
BNZ - Std 8.44 6.45 5.89 5.79
BNZ - TotalMoney 8.44 - - -
CFML 321 Loans 6.70 - - -
CFML Home Loans 6.95 - - -
CFML Prime Loans 8.75 - - -
CFML Standard Loans 9.70 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.15 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 8.15 6.35 5.79 5.69
Co-operative Bank - Standard 8.15 6.85 6.29 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - ▼6.60 ▼6.10 -
First Credit Union Standard 8.50 ▼7.20 ▼6.70 -
Heartland Bank - Online 7.99 6.69 6.35 6.15
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.85 6.45 5.99 5.89
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 8.25 7.19 6.69 6.59
Kiwibank - Offset 8.25 - - -
Kiwibank Special - 6.29 5.79 5.79
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.75 ▼6.69 ▼6.19 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.49 ▼7.05 ▼6.39 ▼6.39
SBS Bank Special - ▼6.45 ▼5.79 ▼5.79
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.94 ▼5.45 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
TSB Bank 9.19 ▼7.09 ▼6.59 ▼6.59
TSB Special 8.39 ▼6.29 ▼5.79 ▼5.79
Unity 8.64 ▼6.29 ▼5.79 -
Unity First Home Buyer special - 6.20 - -
Wairarapa Building Society 8.50 6.65 5.99 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 8.44 6.53 6.10 5.79

Last updated: 3 October 2024 9:23am

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