BNZ's ads escape censure - just

Monday 27 December 2004

The Bank of New Zealand has narrowly escaped censure over its “we’ve cut out brokers” advertising campaign.

By The Landlord

A man in Christchurch, presumably a broker, called G Hill, complained to the Advertising Standards Complaints Board that the BNZ ad campaign was “miss-leading (sp) and dishonest”.

His argument was that BNZ withdrew from the broker market as it wasn’t doing very well there and that mortgages sourced through brokers are more cost-efficient than bank-originated home loans.

BNZ hit back at the allegations saying firstly that margins had been falling and broker commission costs had been rising.


“We felt we could offer our customers better interest rates by cutting out the middle man,” BNZ said in its submission.

It says cutting out the brokers meant a better deal for lenders. To prove its point the bank supplied some illustration of costs. The costs in the following table using “illustrative” margins and loan sizes have been used to prove its case.

Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Site by PHP Developer