People's bank steps into home loan gap

Under the agreement, customers who do not meet Kiwibank criteria will be referred to Bluestone, netting the bank a commission of about 1% a time.

The bank's strategy behind the plan is to help customers get mortgages, while keeping their everyday banking such as deposit accounts and credit cards.

Kiwibank then monitors the Bluestone loans and when the borrower has built an acceptable credit record, Kiwibank will offer to refinance the loans.

Read More - Opens in a new window