Mortgages

Banks changes encouraging growth on non-bankmarket

New Zealand Finance says changes to home loan commission structures by banks will create opportunity and this will only help develop the non-bank housing market in New Zealand.

Tuesday, August 23rd 2005

"NZ Finance is continuing to develop new products in this sector to take advantage of the opportunities being created,” NZ Finance managing director John Callaghan says.

The latest bank to announce changes is Westpac. It is changing the structure of commission payments to mortgage brokers. It is increasing upfront payments from .60% to .75% plus a performance component of .10%.

They will stop paying trail on new loans from that date. Existing trail payments will remain in place.

“This change was not unexpected by Westpac as a result of all the other main banks moving away from trail payment," Callaghan says.

Callaghan says the financial effect on NZ Finance is "minimal as a result of the growth of our mortgage brokering division, New Zealand Mortgage Finance throughout New Zealand."

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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