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Mortgages

Mortgage Rates Daily Commentary
Friday 1 November 2024  Add your comment
Rise in households struggling with mortgage repayments; RBNZ: house prices still near top of sustainable levels

Mortgage arrears continue to rise but are still low by historical levels. [READ ON]

The Reserve Bank says house prices remain near the top of its estimate of sustainable levels and remain “a stretch” for many would-be buyers. [See here]

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BNZ banks on brokers

BNZ has produced a “very strong” result in the six months to March 31, with net profit up almost 28% to $502 million for the period. Chief executive Anthony Healy talks to TMM Online about BNZ's plans to return to the broker market after a 12-year absence.

Thursday, May 7th 2015, 5:13PM

The bank hasn’t grown market share across its home loan and deposit books but has managed to increase income.

BNZ chief executive Anthony Healy said the “very strong result is a result of our focus on the core franchise.”

He said there has been good and careful cost management which has seen the cost to income ratio fall from 40.2% to 39.4%

“The cost to income ratio is in a good space,” he said.

BNZ’s net interest margin was up from 2.34% in September to 2.41% in this period even though more customers had moved to fixed rate home loans which had lower margins.

Overall its lending margin had come down 13 basis points because of competition from other banks, but that had been offset by by funding benefits that includes rolling off some of the expensive GFC funding and repricing some of the lower quality deposits.

“Our earnings on capital have improved that’s probably the single biggest thing that’s driving the margin improvement,” chief financial officer Adrienne Duarte said.

She said in a rising interest rate environment the bank earns more on its capital, and BNZ had “picked the right time to move from two year to three year investment rate.”

Total housing lending rose from $30.6 billion to $31.4 billion however its share of the market remained flat at 15.8%.

Healy said that is a good result as the bank was only competing in 75% of the market. As it moved into the broker space he expected to see the bank’s market share increase.

However he would not put numbers around how much it is forecast to grow.

Healy said he expects BNZ’s recent re-entry into the mortgage broker market to boost the bank’s home loan performance, and to position the bank strongly in the high-growth Auckland market.

“We know that 25% of customers choose to use a broker, so our decision made strategic and commercial sense. It extends our reach and will enhance BNZ’s capacity to help more New Zealanders to buy their own home.”

He said BNZ was “skewing investment to Auckland where there’s more growth and we are a bit under our natural share in Auckland.”

Around 40% of BNZ’s mortgage portfolio was in Auckland and Christchurch comes in at 15%.

The portion of lending to the over 80% LVR market has shrunk significantly from $5,049 million in September 13 to $3,403 million which represents 10.5% of its overall book.

Tags: Anthony Healy BNZ

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ ▲8.15 ▲6.79 ▲6.45 ▲6.29
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 6.39 6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼8.10 ▼6.19 ▼5.79 -
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 7.99 6.24 6.09 5.69

Last updated: 1 November 2024 2:24pm

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