Homeowners using mortgage brokers to help them get the best deal may now have an extra option as the Government-owned Kiwibank plans to double the number of mortgage brokers it works with in the next year.
But despite Kiwibank’s plans to boost the number of mortgage brokers who can submit home loans to 500 by mid-2023, there will still be about 75% of mortgage brokers left in the dark.
Mortgage advisers told OneRoof the move could be a positive one for homeowners, but depended on whether Kiwibank’s terms differed from the other major banks it works with and how many more brokers were given accreditation.
Unlike the other major banks like ANZ, Westpac, ASB and BNZ, Kiwibank has, until now, not worked with the majority of brokers, and instead customers wanting a loan had to approach them directly.
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Kiwibank general manager of home lending Nicole Pervan said by working with more mortgage advisers it hopes to support more Kiwis with their home-ownership aspirations.
“We know that Kiwis are utilising the services of mortgage advisers to receive independent advice and support through the home lending process. By partnering with more advisers, Kiwibank and its competitive offerings, become a consideration for more customers.”
Kiwibank was working with 250 mortgage advisers by the end of June 2022 and aimed to have approved a total 500 mortgage advisers with “similar values and purpose” by the end of June 2023.
EasyStreet Mortgages mortgage adviser Gareth Veale was hoping to receive accreditation by the Christmas and said it could provide more options for customers depending on how Kiwibank differentiated itself to other lenders.
“If it’s basically the same sort of lending policy and rules as the main trading banks then what’s the point other than it being 100% Kiwi-owned bank.”
While there was potential to barter over things such as interest rates and cash-backs, he said it did require Kiwibank to be happy to negotiate as well.
Kiwibank general manager of home lending Nicole Pervan hopes the changes will help more Kiwis get on the property ladder. Photo / Supplied
“From my experience to date when I’ve been in situations where I’ve had to compete with Kiwibank, those bigger banks have been a little bit more able to go that step further than Kiwibank has. The hope is that Kiwibank, in entering the market, is better on interest rates and a little bit more competitive too.”
Veale also hoped they would take a more lenient approach to first-home buyers and business people or those who are self-employed who have struggled to get finance.
Kiwibank’s latest initiative around encouraging co-ownership models suggested it was looking to innovate and loosen its lending policy in that area, and Veale hoped this would be the start of some changes.
Mortgage Lab chief executive Rupert Gough said it was positive to have another option for borrowers especially because policies could differ significantly between each bank.
“Really it just means that the right person is going to the right bank without each person having to do their own leg work, going around all the banks and reading all their policies so I think it is a good thing.”
However, Gough said Kiwibank’s target of having approved 500 mortgage advisers of the total 1800 to 2000 mortgage advisers in the country meant many would be left out.
“I think it is good to have a sensible and orderly roll-out. They don’t want to open out to everybody and find it is taking a month or six weeks to reply - that doesn’t help anybody. But I think they are also missing out on a significant amount of business.”
