Competition and choice benefit homebuyers
Kiwi homebuyers are increasingly seeking the help of mortgage advisers, with three of the main banks confirming that the share of home loans facilitated through advisers has increased year-on-year.
Financial Advice New Zealand estimates that the portion of home loans written by mortgage advisers is currently between 45% and 50%. Across the ditch, official figures provided by the Mortgage and Finance Association of Australia show that mortgage brokers wrote 71.5% of new residential home loans over the September 2023 quarter, cited as the second-highest mortgage broker share the industry had recorded.
ANZ Bank New Zealand confirmed as part of its FY23 results that the proportion of home loans written through the adviser channel was 60%, up from 56% in FY22.
An ANZ spokesperson said that home lending had become “more complex”, acknowledging that the market had experienced regulatory and other changes. The bank acknowledged that both its ANZ Mobile Mortgage Managers and adviser networks delivered a valuable service to home loan customers.
“We’re pleased our investment in both these channels continues to deliver a valuable service for our customers and growth in our home loan portfolio,” the ANZ spokesperson said.
NZ Adviser also asked ASB Bank, Bank of New Zealand, Kiwibank and Westpac to comment on the percentage of home loans written by mortgage advisers, and the service they provide to customers.
Home loan advice, guidance important – ASB Bank
ASB Bank did not confirm the percentage of adviser-arranged home loans, however a bank spokesperson said that the proportion was “in line with the rest of the industry”.
The spokesperson said the bank had strong relationships with advisers and recognised the importance of the role advisers played.
“When applying for a home loan, customers are looking for advice and guidance as they work through the process,” the ASB Bank spokesperson said. “Each customer has a different set of requirements and therefore a different perspective on which lender they think is best suited to their needs.”
Advisers support competition and choice – BNZ
Bank of New Zealand confirmed that as of September 2023, the adviser channel accounted for 34.8% of BNZ home loan originations, up from 30.7% the previous financial year.
Home loans represented 56.3% of BNZ total lending (as at September 2023), up from 54.8% in September 2022. In its FY23 results, the bank reported that home lending reached $57.7 billion (up 5.3%).
BNZ general manager home lending Adam Ward said that Bank of New Zealand welcomed the “competition and choice” that mortgage advisers and brokers brought to the home loan market.
“Advisers are highly geographically spread across New Zealand, are flexible, and work with a range of lenders,” Ward said.
Ward said that BNZ’s home loan partners provided “detailed knowledge” of the bank’s products and services, and tailor integrated solutions to each customer’s individual needs. As representatives of BNZ, he said that advisers were able to “quickly support customers” with lending solutions.
“The different but complementary benefits offered by both advisers and our home loan partners enhance the home loan journey for New Zealanders, offering increased choice, flexibility, and competition,” Ward said.
Mortgage advisers are key partners – Kiwibank
In the six months to September 30, 2023, Kiwibank confirmed that the percentage of new home loans (by value) originated from mortgage advisers was 58%.
Home loans represented 83.1% of the bank’s total lending in FY23 and the value of home loans ($25.1 billion) had increased by 6% year-on-year.
Kiwibank general manager home lending Nicole Pervan (pictured immediately below) said that research conducted by the bank showed that New Zealanders were choosing to use advisers, who she said provided independent advice to help them to make informed decisions.
“We see advisers as key partners to support our growth and impact we want to have on New Zealand,” Pervan said.
Advisers support homebuying process – Westpac
Adviser-introduced home loans represented 51.9% of Westpac NZ’s total portfolio (as at September 30), up from 50.1% the previous 12 months.
The bank confirmed that home loans represented 65.9% of its total lending, up slightly from 65.6% in FY22.
Westpac NZ national manager of third party channels Chris Poledniok (pictured immediately below) said that the bank “appreciates” the value of mortgage advisers in helping to guide customers through the homebuying process.
“We have a strong and deep relationship with advisers around the country, and we work closely with them to ensure they’re well supported through our products and credit policy,” Poledniok said.
Former FANZ CEO Katrina Shanks told NZ Adviser Talk in November that she’d seen the level of engagement with financial advisers (particularly mortgage advisers) continue to grow.
She cited reasons such as a reducing number of bank branches and said that the profile of financial advisers overall had increased.
Why are mortgage advisers becoming an increasingly popular choice for homebuyers and homeowners? Share your thoughts in the comments section below.
