TMM - The NZ Mortgage Mag Issue 2 2016 by TMM - The NZ Mortgage Mag

Issue

2016

Being social for

ONLINE SUCCESS

DIGITAL UNION MORTGAGE MATCH-MAKING

FINDING SOLUTIONS IAN WOODS

IN THE LOOP

PROPERTY NEWS ROUND-UP

CONTENTS UPFRONT 05 EDITORIAL

Bracing for FAA changes

06 NEWS

Mortgage headlines from goodreturns.co.nz, summary of the TMM videos on the OCR reaction and Squirrel success and expansion.

08 PEOPLE ON THE MOVE The latest appointments and people news.

Social media is not just for socialising

14 FEATURES 10 HOUSING COMMENTARY

Any slowdown in the Auckland market may be over, as signs show sleeping giants can only slumber so long.

12 INVESTMENTS

A round-up of property news and events from New Zealand Property Investor.

14 MAKING A CONNECTION

Social media is not just for socialising. Susan Edmunds finds out how advisers are staying relevant in this digital age.

20 REGULATION

Advisers are being warned to prepare for regulation changes but predictions are that many wills struggle to cope, Susan Edmunds discovers.

24 MY BUSINESS: Ian Woods

A banking career made it easy for Ian Woods to find success in the mortgage industry.

Ian Woods

COLUMNS 22 SALES AND MARKETING

Paul Watkins explains why seeking new ways to talk about your service is critical.

26 INTEREST RATES

BNZ chief economist Tony Alexander gives his expert opinion on monetary policy, housing and the NZD.

28 PAA

All you need to know about the adviser event of the year.

30 INSURANCE

Why clients doing it themselves tends to be an expensive fail.

32 LEGAL

TMMâ&#x20AC;&#x2122;s resident legal expert, Jonathan Flaws, writes how online mortgages can be effective, but there still needs personal interaction.

34 INTELLIGENCE

Home loan summary of the Top 5 banks.

EDITOR’S LETTER

Bracing for FAA changes PUBLISHER: Philip Macalister

’m going to start this issue by picking up on a topic I touched on in the previous issue – regulation. Or, more specifically, the review of the Financial Advisers Act (FAA). Submissions have closed on the Options Paper and there has been a lot of industry discussion on the future shape of financial adviser regulation. My prediction is that authorised financial advisers will see little change in their regulatory environment. However registered financial advisers, which is the category most mortgage advisers work under, will see their world turned upside down. When the FAA came in people who worked in mortgages and insurance saw little change. This time around they will bear the brunt of the change. One of my observations is that AFAs have been quite engaged in the debate – if comments on Good Returns are anything to go by. Yet there has been a wall of silence from RFAs. Does that mean they are happy with what’s coming? I doubt it.

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Among the predictions are that RFAs will have to attain a National Certificate or New Zealand Certificate up to Level 5. There will be competency requirements and professional development requirements. Remuneration levels will have to be disclosed to clients. And there will be more. Compliance levels will increase. There will be less time to actually work with clients. Whether mortgage advisers should have to step up to these levels is, in my view, not a question that will be asked. It’s too late. If there is a silver lining it is that RFAs will, in all likelihood, be given a reasonable timeframe to transition to these new levels. To help you as much as possible we will provide relevant features in TMM. In this issue Susan Edmunds provides you with a good update. Plus an update on what is happening in Australia with the Australian Securities and Investment Commission’s enquiry into mortgage broker remuneration enquiry. Meanwhile back here, TMM is continuing to evolve, both with the magazine and our online presence. We have set a goal of doing a video every fortnight. These have been wellreceived so far and we are always looking for interesting subjects and topics to cover. (Send your ideas to philp@tmmonline.co.nz) Likewise we are getting closer to delivering more mortgage adviser news online. No doubt you will get an email about this when it is live! Till then, take advantage of this buoyant housing market and helping your clients.

Philip Macalister Publisher

SENIOR WRITERS: Susan Edmunds, Miriam Bell, Dana Kinita SUB EDITOR: Phil Campbell CONTRIBUTORS: Paul Watkins Steve Wright Jonathan Flaws Kymberly Martin GRAPHIC DESIGN: Jonathan Harding ADVERTISING SALES: Freephone: 0800 345 675 sales@tarawera.co.nz SUBSCRIPTIONS: Dianne Gordon Phone 0800 345 675 HEAD OFFICE: 1448A Hinemoa St, Rotorua PO Box 2011, Rotorua Phone: 07-349 1920 Fax: 07-349 1926 tmm_editor@tarawera.co.nz

The NZ Mortgage Mag is published by Tarawera Publishing Ltd (TPL) in conjunction with the Professional Advisers Association. TPL also publishes online money management magazine Good Returns www.goodreturns.co.nz and ASSET magazine. All contents of The NZ Mortgage Mag are copyright Tarawera Publishing Ltd. Any reproduction without prior written permission is strictly prohibited.

The NZ Mortgage Mag welcomes opinions from all readers on its editorial. If you would like to comment on articles, columns, or regularly appearing pieces in The NZ Mortgage Mag, or on other issues, please send your comments to: tmm_editor@tarawera.co.nz

Last year we launched the weekly TMM email newsletter to raptuous applause. The sequel to this will be a brand spanking new web site with all the latest news for mortgage advisers. You don't need a ticket to get in. Just type tmmonline.nz into your browser and Bingo you're in the front row.

www.tmmonline.nz

NEWS

MAKING HEADLINES Read some of the mortgage headlines that have made news on financial adviser site, goodreturns.co.nz. Rollout strategy under way BNZ has taken on its next tranche of NZ Financial Services Group advisers bringing the total number of accredited brokers to 370. While previously it only accredited advisers in Auckland and Christchurch, it now has a much broader geographic coverage. BNZ head of third-party distribution Adam Ward says the bank is a long way ahead of its volume targets. The bank has taken on an additional 11 credit assessors to help manage the volume. Ward says BNZ now has 47 staff servicing the broker market. He says BNZ aims to turn around an application within two days. Like all banks it has had issues here but he says BNZ is “hitting its SLAs much more regularly than it was previously”.

between Newpark Financial Services and Mortgage Link. Newpark managing director Darren Gannon says under the new partnership members can work with The Mortgage Supply Company. Mortgage Supply was formed by David Windler, David Hart and Jenny Campbell. Under the model insurance advisers complete a referral form about the loan application, submit it to Newpark and Newpark

Double-dating mortgage groups Dealer group Newpark Broking Services (NBS) is now offering an alternative mortgage option to its life insurance adviser members. This is despite NBS being a joint venture

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Darren Gannon

decides which company to send it to. Once the loan is written the mortgage company pays 30% of the commission to the adviser who referred the business. Newpark does not receive any commission from the referrals.

Low equity fee dropped

ASB’s decision to replace its one-off low-equity fee with a lowequity margin is being tipped to put pressure on the only major bank left in the market offering a fee. ASB and Sovereign has announced it will add a margin on any lending over 80% LVR. For borrowers between 80% and 8%, the lowequity margin will be 0.3% per year. Between 85% and 90%, it will be 0.75%. Between 90% and 95%, it will be 1.3% and over 95% it will be 1.5%. ASB said in a note to brokers: “The new lowequity margins reflect the costs associated with high-LVR lending. These include increased capital adequacy requirements on high-LVR lending imposed by the Reserve Bank of New Zealand.”

Latest TMM video Fast off the mark Co-Operative Bank was quick in cutting its floating interest rate following the OCR announcement but it wasn't a planned move to be first off the block, chief executive Bruce McLachlan says. “It just so happens that others were slow rather than we were quick, I think," he says. "We are small and nimble though. So we can, when we're surprised, we're able to get the people together quite quickly and make a good decision without having to go through a bureaucratic system which might take days". McLachlan has described the OCR cut by the Reserve Bank Governor Graeme Wheeler as a "deliberate action to surprise the market". "Why? He knows a bigger reaction will get the currency down. He's really desperate to get that down which is the key for him to re-balance the things he needs to get inflation to the level that's within his band," he says.

McLachlan has described the OCR cut by the Reserve Bank Governor Graeme Wheeler as a ❝deliberate action to surprise the market. ❞ Squirrel success High-profile mortgage adviser John Bolton recently won a top award for the volume of business he wrote last year. Squirrel wrote $800 million last year with Bolton saying it has come from “all over the market”. While the Chinese market has slowed, they've seen major activity from first-home buyers and many people upgrading their homes or looking to the regions to buy rental properties. He says they’re growing rapidly as a business with 45 staff, head office staff and IT so see the need to beef up the amount of capital they are investing. To watch the videos in full go to tmmonline.nz

PEOPLE

PEOPLE ON THE MOVE

Got a new appointment you would like to tell advisers about? Email details and a pic to tmm_editor@tarawera.co.nz

Stanhope to Sovereign

Nick Stanhope Sovereign has appointed Nick Stanhope to the role of chief executive. Stanhope joins Sovereign with a background within the New Zealand financial services industry, most recently holding the position of executive general manager, wealth and insurance, at ASB. Sovereign chairman Gavin Walker said the

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organisation was thrilled to have a candidate of Stanhope’s calibre joining the company. “Nick’s strength of relationships combined with his significant contribution to the Sovereign business while working at ASB, most notably the development of the highly successful Bancassurance channel, made him an outstanding choice for the role. “He is a proven strategic and results-driven leader who will be a huge asset to the organisation. He is delighted to be joining the Sovereign fold to get under way with the exciting opportunities the role will offer.” Stanhope starts in the role on April 11. ASB have not yet appointed a replacement.

a commercial contract negotiator for the Government, he is keen to develop winning solutions for all parties. Phil Daniels, the new adviser in the Warkworth area, has significant commercial experience. He has held a range of senior customer-focused positions. Walker says he is committed to providing quality insurance and mortgage advice by linking the needs of clients to the best providers in the finance and insurance industries.

From military to mortgages Mortgage Link has employed many new faces throughout the country bringing with them a wealth of experience from diverse backgrounds. Philip Walker is a new adviser in Wellington. With an extensive military background, and with more recent years as

Philip Walker

Phil Daniels

Matt Kensington

Rebecca Taiaroa

Matt Kensington hails from the Waikato region, where he spent most of his early career dairy farming. But a knee injury necessitated a career change. Kensington retrained at Waikato University, subsequently joining ASB Bank. He is based in Whangarei where he had worked as a specialist in rural and residential lending for ASB. Outside work, Kensington is a keen waka ama (outrigger canoe) paddler and was part of a national championship-winning team at world events. After 10 years with Westpac, with seven years specialising in lending; specifically home lending, Rebecca Taiaroa has joined Mortgage Link in North Canterbury. In her spare time, she enjoys being involved in community groups and organisations and is currently the president of the Rangiora Gymnastics Club as her daughter is a keen sportsperson.

New adviser at MX

Sherry Huang Mortgage Express has appointed Sherry Huang as mortgage adviser. Originally from China, Huang has spent the last 13 years living and working in New Zealand. She has a background in accounting and finance, with first-hand knowledge of buying and selling investment properties. Huang’s previous roles include several years’

Steve Pikia experience in assisting small business owners with tax and accounting enquiries, providing financial reports, financial planning and taxation advice. Fluent in Mandarin, Cantonese and English, Huang specialises in assisting with pre approvals, home loans, commercial loans, construction loans, refinancing and refixing. Steve Pikia has also joined the team in Hamilton. His background is in banking with extensive experience in retail lending and first-hand knowledge of credit policy. Before joining Mortgage Express, Pikia worked at BNZ as a banking adviser and bank manager, specialising in lending and insurance. During his time at BNZ, Pikia was renowned for his strong customer service ethos and was the recipient of several awards, including the Chevron Award, the highest award attainable at BNZ, and a Silver Kiwi in recognition of his achievement as a high performing business adviser. He says he is looking forward to the challenges. Danny Fang also joins the Mortgage Express team. Based in Auckland he has more than six years’ experience working for two major banks as a lending manager and a mobile mortgage manager. He has a thorough knowledge of and experience in residential and property lending, and a good understanding of a variety of home loan structures. Fluent in both English and Mandarin, Fang will be offering advice on home loan lending, business lending, commercial lending, property finance, general insurance and life insurance products, and KiwiSaver.

Awarding night

The AMP Awards were held recently where AMP formally recognised some of the standout individual and business achievements of AMP Advisers and employees in 2015. The winners were: AMP Adviser Business of the Year Certus Financial Group

AMP Adviser of the Year Brendon White – Certus Financial Group Spicers Adviser Business of the Year Hawkes Bay Spicers Adviser of the Year Tobias Taylor AdviceFirst Office of the Year Auckland Independent Financial Adviser Business of the Year Cammell Consulting Group Ltd AMP Small Business Champion Insurance Specialists AMP Medium Business Champion AMP Powerhouse Financial Services AMP Large Business Champion Certus Financial Services AMP New Adviser of the Year Nevil Chand – AMP360 AMP Wealth Protection Business Growth Champion Mel Cook – HTL Insurance Limited AMP Wealth Protection Sales Champion Andy Pope – AdviceFirst Canterbury AMP Wealth Management Sales Champion Tobias Taylor – Spicers AMP Mortgage Sales Champion Mark Pullar – Mortgage South Limited AMP General Insurance Sales Champion James Li – Certus Financial Services AMP Workplace Savings Sales Champion Warren Robertson – Certus Financial Services AMP Group Insurance Sales Champion Bruce Cammell – Cammell Consulting Group Blue Ribbon · Bob Bishop – AdviceFirst · Corey Baxter – Mainland Insurance & Mortgage · David Gyde – Amicus Group · Dharmesh Lala – Moneybox · John Cameron – Moneybox · Lawden Chow – AMP Genesis Financial Services · Mel Cook – HTL Insurance Limited · Nigel Rukuwai – AMP Powerhouse Financial Services · Quentin Holmes – AdviceFirst · Russell Jones – AMP Liquid · Warren Robertson – Certus Financial Group Silver Ribbon · Alan Hartles – True North Investments · Andy Pope – AdviceFirst Canterbury · Brendon Haughey – Haughey Insurances Limited · Bruce Cammell – Cammell Consulting Group Ltd · James Li – Certus Financial Group · Mark Pullar – Mortgage South Limited · Steve Morris – S W Morris & Associates Gold Ribbon · Brendon White – Certus Financial Group · Hayden Rikys – Insurance Specialists · Tobias Taylor – Spicers

HOUSING COMMENTARY By Miriam Bell

Sleeping giant stirs

Auckland’s market may have dropped off the heady pace it set in 2015, but signs are emerging that its current slumber may not last for long, reports Miriam Bell.

leeping giants slumber for only so long – and the Auckland housing market is a case in point. The first of the new year’s data told a story of dropping prices and slowing pace. But February’s data provides hints this situation may not last. However, while the SuperCity’s market may be picking up again, to date it seems to be at a more moderate pace. Ongoing strong growth in other markets means it is time for regional New Zealand to shine.

HINTS OF CHANGE 2016’s first sets of data were all about Auckland’s falling prices and values. However, January is traditionally a slow time for the housing market and it was suggested the data might not represent an ongoing trend. The release of February’s data gives weight to that argument. Realestate.co.nz’s latest data showed that, after several months of falls, Auckland’s average asking price roared back to a record high, of $866,080, in February 2016. This was up on the previous record of $851,531 set in September 2015. It was also a year-on-year increase of 13.3% from February 2015’s average asking price of $764,424. But realestate.co.nz chief executive Brendon Skipper said the average asking prices needed to be seen against a background of relatively low inventory. And this situation is changing. According to the data, new listings in Auckland have jumped and the city now has the highest number of listings for a February since 2013.

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❝ The Auckland

region continues to experience very low levels of listings, despite the recent decline in sales volume. – Colleen Milne ❞

MIXED RESULTS Barfoot & Thompson’s February data also showed a significant increase in new listings in Auckland. Having started the month with the lowest level in 20 years, the agency ended the

month with 3,318 listings, the highest amount since March last year. Initially limited listings contributed to low sales in February, according to Barfoot & Thompson managing director Peter Barfoot. They may have also contributed to the agency’s mixed price results. The average sales price rose by 1.3% to come in at $822,024, as compared to $811,700 in January. But the median price dropped by 2.9% to $738,000, from $760,000 in January Thompson said prices were still higher than at the same time last year and this could signal the Auckland market’s slowdown might be a temporary one. Based on past trends, house prices in coming months could build modestly. “Over the past nine years, Auckland house prices have followed a cycle of falling in the first quarter of the year and then rising from autumn on. We have now had two months of trading where prices have been higher than they were in their equivalent months last year. In the past, that has meant prices have risen throughout the year.” Westpac senior economist Michael Gordon was cautious, however, on how representative the Barfoot & Thompson data was of the wider market. He said the data suggested the Auckland housing market was subdued in February, but there was some ambiguity around it.

ACTIVITY PICKS UP Further indications that the Auckland market might be stirring came hidden within February’s QV data.

It showed the city’s property values were down for the second consecutive month. Values in the region dropped by 0.7% over the last three months, leaving the average value at $925,656 in February. This was down on January’s average value of $928,921. But QV national spokesperson Andrea Rush said the drop in values is a continuation of the softening in the market in response to the introduction of new tax and LVR measures. “Over the past couple of weeks, activity levels have started to pick up across the SuperCity, so it’s possible the drop in values may be short lived.” Auckland’s slowdown might not last, agreed QV Auckland valuer James Wilson. He said activity levels remained low compared to the first nine months of 2015, but the “wait and see” approach of late last year appeared to be subsiding among investors. He said many investors now appear willing to re-enter the market. “Auction campaigns are still producing lower clearance rates than last year, but postauction negotiations are proving successful in increasing numbers, attendance is up and clearance rates are rising.”

SECOND FIDDLE Conversely, the February data from REINZ painted a less rosy picture for Auckland. While sales volume and median prices were both up, on a seasonally-adjusted basis they both fell. Sales across the region rose by 27% as compared to January but, when seasonally adjusted, they fell by 8%. Further, there were 18% fewer sales in February than there was at the same time last year. Likewise, the region’s median price was up by 4%, as compared to January, and 11% year-on-year. This left it at $750,000, up from $720,000 in January. But, when seasonally adjusted, the median price fell by 1%, as compared to January. While Auckland’s pull back in sales volumes had continued, prices are remaining firm with the median price trending around $750,000 over the past nine months, REINZ chief executive Colleen Milne said. “Auckland, previously one of the drivers of the national market, is now playing second fiddle to markets like Waikato and the Bay of Plenty.” Westpac senior economist Michael Gordon said the results for February itself were mixed. “But the emerging picture is one of a more subdued, but still positive, trend in the Auckland housing market since the property investment regulations came into force last October.” He also noted that mortgage approvals, auction clearance rates and valuation enquires appear to have picked up in recent weeks. This suggests the housing market is still adjusting to the new regulations.

KICKING INTO ACTION The last set of data off the blocks in February came from Trade Me Property. And it showed Auckland’s property market is kicking back into action, with the city’s average asking price up by 2% to hit a record high of $817,150.

Head of Trade Me Property Nigel Jeffries said Auckland’s property market might have winced in January, but new listings in February had injected new energy into it. “The expected selling price for an Auckland property was $710,250 a year ago, so we’ve seen expectations from sellers rise by 15% or more than $105,000 over the past 12 months.” He said the hesitancy over recent months has been “washed out” of the property market – not just in Auckland, but around the country. “In summer the market took its foot off the gas, but it looks to be back on track.” Trade Me Property’s data showed that, in February, the national average asking price went up by 1.6% on last month and 9% year onyear. This left it at $550,600, which is not a record high but still $45,000 more than a year ago. Property markets across the regions grew stronger in February, with fewer regions showing a decline, Jeffries said. “Average asking prices are back on a steady track following some turbulence last year and it will be interesting to see if the rockiness of 2015 is behind us.”

REINZ SALES: DOWN

Once seasonally-adjusted, sales were down nationwide in January – although once Auckland was excluded sales were up.

INTEREST RATES: DOWN

Interest rates are still at record lows.

OCR: DOWN

The Reserve Bank cut the OCR to 2.25% in March.

REGIONS SHINE In fact, in February it was regional New Zealand that was the star of the housing market. The data from QV, REINZ and Trade Me Property all provided evidence of increases in national prices and values. QV’s February data showed the average nationwide value rose to $556,306. This was an increase of 11.6% over the past year, but of just 0.1% over the past three months. REINZ had February’s national median price at $450,000, an increase of 0.4% on January and up 4.7% yearonyear. QV’s Rush said that, with the exception of Auckland, values in the main centres went up. For example, there was strong growth in values in Whangarei (up 4.9%), Tauranga (up 7.4%), Hamilton (up 4.6%), Napier (up 4.1%), Wellington (up 4.7%) and Queenstown (up 6.1%) over the past three months. Values in Christchurch and Dunedin are also rising, but more moderately, she said. “Regional areas within commuting distance to Auckland are benefiting from buyers looking for more affordable housing or rental property. So values are up more than 5% in the Kaipara, Waikato and Hauraki Districts over the past three months.” The REINZ data had Waikato/Bay of Plenty, Hawke’s Bay and Wellington and Nelson/ Marlborough all hitting record median prices. Milne said the data underlined the surge of activity in regional markets over the past six months. “A number of regions are recording strong increases in sales volumes compared to this time last year. The percentage rise of median prices is rising ahead of the Auckland region. There are significant drops in the levels of inventory in the regions and, in a number of cases, noticeable drops in the number of days to sell.” ✚

IMMIGRATION: UP

Record-breaking migration continued in January, according to Statistics NZ’s latest data.

BUILDING CONSENTS: DOWN

Building consents were down nationwide in January – although this was driven by a big drop in Canterbury, says Statistics NZ.

MORTGAGE APPROVALS: DOWN

Mortgage lending is trending down. Reserve Bank data shows a big drop in lending in January, following a dip in December.

RENTS: UP

Rents went up nationwide in January – although this was partly a correction following a relatively static 2015.

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INVESTMENT By Miriam Bell - Brought to you by New Zealand Property Investor

Too busy to keep up with everything that is going on in the property sector? TMM is here to help. Read our round-up of property investment news and events in each issue of the magazine.

nalysis of Auckland’s

housing market, and its impact elsewhere, dominated the first months of 2016. However, beneath those headlines, battle lines were being drawn in two long-simmering and controversial issues – the state of rental properties and the intensification of Auckland. Complaints of sky-high rents and random rent increases, particularly in Auckland, made headlines in January. But new data from Trade Me Property showed that, contrary to popular opinion, the rental market is a tenant’s market. It showed median asking rents nationwide remained static, ending 2015 exactly where they began – at $420. In Auckland, the median asking rent started 2015 at $480 and ended it at $495, an increase of 7.6% on December 2014. Head of Trade Me Property Nigel Jeffries

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said rental increases in Auckland were modest compared to the rise in asking prices of properties for sale over the same period. “Clearly investors in Auckland are hoping for long-term capital gains from their properties but, in the short term, the rent from their investment is a drop in the bucket on a significant Auckland mortgage,” Jeffries said. Economist Shamubeel Eaqub said the lack of income growth around the country would constrain rental growth. “There isn’t much scope for rent raises,” Eaqub says. “Until incomes rise, we won’t see much in the way of gains in rent across New Zealand – and certainly not outside areas that have supply shortages, like Auckland and Queenstown.” In Auckland, where the rental market is tight with limited vacancies, there has been some upward pressure on rents, he said. “But that too will be constrained by incomes.” Expectations of house price gains in Auckland have fallen dramatically, according to the latest ASB Housing Confidence survey.

Expectations drop Nationwide expectations of price gains dropped in the three months to January 2016. But in Auckland, 30% of respondents expect house prices to go up over the year – down from 50% last quarter. ASB chief economist Nick Tuffley said high house prices and the tight housing market will continue to weigh on sentiment, as may the additional tax and lending rules. While the fall in Auckland house price expectations was not surprising, the decline

Nick Tuffley in price expectations around the rest of the country was, he said. “Recent trends have indicated that the Reserve Bank’s new lending measures have brought an acceleration in house price growth outside of Auckland.” Meanwhile, the survey also showed fewer people now think interest rates will fall over the coming year. Just 24% of respondents expected rates to fall, compared with 35% last quarter. Tuffley said there was a noticeable increase in respondents expecting interest rates to stay where they are. “The survey shows 30% of respondents are expecting interest rates to stay the same – as compared with 21% last quarter. This is perhaps because they don’t think they can drop much lower.”

Following the halo Auckland’s market may be slowing, but prices are still sky-high – and this means investors continue to look to other parts of New Zealand for better deals. However, industry experts have warned they should tread carefully. Auckland Property Investors Association

Minimum standards struggle The campaign for the introduction of a rental warrant of fitness (WOF) roared back into life in February, as the Residential Tenancies Amendment Bill hit the Select Committee stage. Controversy has long surrounded the legislation as many believe it does not go far enough and that rental properties should instead be subject to a WOF. Now, Children’s Commissioner Dr Russell Wills and Community Housing Aotearoa (CHA) have joined the fray. Wills said the Bill was “shameful” as it would do little for children living in cold, damp, mouldy housing. “Without heating and ventilation standards or enforcement in the legislation, these changes will have little impact for children,” Wills said. “An insulated but unheated house is still a cold house. Tenants don’t and won’t complain.” He said, there should be a requirement for all houses to meet the current insulation standard, application of a heating and ventilation standard, and the introduction of monitoring or enforcement. CHA co-chair Julie Nelson also said the enforcement provisions should be improved. This is because they require tenants to report problems rather than for landlords to show they meet minimum requirements. However, the NZ Property Investors Federation, which supports the Bill, believes the issues are more complex and that solutions have to be cost effective. It said the harder it is for investors to provide rental property, the more expensive and restrictive it will be for tenants. Brought to you by New Zealand Property Investor.

president Andrew Bruce said investors looking outside of Auckland should ensure their area selection was demand-driven. That means opting for areas where people are actually going. “They should be wary of areas which are being influenced by government regulation

and may not have the other necessary fundamentals,” Bruce said. “This is because the stroke of a pen can change the flow of people into such an area. It is not a good idea to invest in areas which are not growing, even if they are cheap.” Well-known Auckland property investor David Whitburn agreed. He said investors buying out of Auckland need to focus on cash flow which is something they can’t get in Auckland. “If buying for cash flow, as opposed to growth, investors have to think about the state of the rental market in the area they are interested in,” Whitburn said. “Some towns are pretty stagnant, or even declining, in terms of jobs and population growth which makes for limited demand and high vacancy rates.” Rather than looking out of Auckland, investors should look at buying new builds in Auckland, he said. “They are easier to finance as they only need a 10% deposit and they get a warmer, drier property which, according to MBIE data, makes it easier to retain tenants.”

Battle over Auckland The fiercest, most dramatic story of the year to date has been the struggle over the Proposed Auckland Unitary Plan (PAUP) and the associated zoning maps introduced by Auckland Council late last year. There was immediate opposition to the maps which rezoned parts of the eastern and central Auckland suburbs, and part of South Auckland, to allow for more townhouses and apartments. While many areas would have lost lose their singlehouse zoning, more than 75% of the city was still limited to two storeys. Along with the Council, the government, the Productivity Commission, the Property Council, and youth movement Generation Zero all believe such intensification is necessary to address Auckland’s housing supply and affordability issues. However, as the PAUP hearings in March approached, opposition to the Council’s proposals grew fevered. Hundreds turned out to a pre-hearing meeting in Kohimarama and residents lobby group Auckland 2040 embarked on a campaign to get the Council to withdraw the “out of scope” zoning changes. After it was reported that 11 of the city’s 21 councillors supported the withdrawal campaign, Auckland mayor Len Brown called an extra-ordinary meeting. Supporters of intensification appeared at the angry meeting, but the campaign against the zoning maps won the day and

the Council withdrew them. This outcome was criticised by many commentators as one which would have terrible consequences for Auckland’s future. However, there is some confusion about what it might ultimately mean for the PAUP. Building and Housing Minister Nick Smith said the final decision on the shape of the PAUP would come down to the Independent Hearings Panel, which would hear from many influential submitters – some of whom want more intensification than the Council. The panel will recommend a final version of the PAUP in July.

DOING IT BY THE BOOK

online...

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Savvy advisers are finding success in reaching out to potential clients through social media platforms, as Susan Edmunds discovers. EBOOKS: CAMPBELL HASTIE Writing a book might seem an extreme way to go about getting more mortgage broking business but Campbell Hastie, of Go2Guys, said he had a bit of downtime to spare during the global financial crisis. He decided to turn his attention to writing a “how-to” guide for first-home buyers, to be offered free as an ebook from his website. “If I wasn’t snapper fishing I was writing a few chapters,” Hastie said. The Bank Said Yes is 28 pages long and guides buyers through the process of applying for a mortgage and buying a house. “I had a brainwave one morning – that I should write a wee book so people can better understand the way banks think and in turn improve the chances of their loan applications being approved. So that when you hear ‘standard lending criteria, terms and conditions apply’ you’ll have a reasonable idea of how to meet that criteria. So that the process of buying a house isn’t so stressful,” Hastie wrote in the preface.

People will often approach Hastie saying they have read the book. “I definitely think I will write another,” he said. Hastie said would recommend writing an ebook as a marketing tool for other mortgage brokers who were looking for new ways to promote themselves and their brands. “It’s a tried and true method. It gives you a level of credibility when you are a published author.” Hastie said self-employed people would be a good target for the next ebook.

LINKEDIN: SARAH BLOXHAM Sarah Bloxham, of Yes Home Loans, has only returned to the mortgage broking world recently but LinkedIn is proving a key part of developing her networks and honing her knowledge. Since updating her LinkedIn profile, she said she had started to notice more people engaging with her and wanting to forge connections.

DETERMINING OFFER It covers such matters as using KiwiSaver to fund a deposit, having a guarantor on the loan, what people’s bank account statements say about them, the process of using a mortgage broker and how to determine what to offer on a house. Written in a conversational style, it breaks concepts down so that they are easy for the average buyer to understand. It also provides a way for Hastie and his team to keep in touch with potential clients. Once someone downloads the book, they receive follow-up emails from Go2Guys in the days following and a week later offering assistance and asking for feedback on the book. Hastie said writing did not come naturally and the book was hard work at times. “The hard part was the content, making it flow and readable.” A copy writer went through the finished product once Hastie had written his draft and a graphic designer provided the finishing touches. But Hastie said it had paid off. He said it was a “fabulous marketing tool” and had been downloaded about 1200 times since it was first published in 2012. A revised version was finished last year. “I have no idea how many times it has been shared. People could be downloading it and sharing it, emailing it, and I wouldn’t know.”

" I get people asking to connect so I look through them and think ‘why’ and then see they have some connection to the industry" – Sarah Bloxham

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She has more than 500 connections and works to keep her profile updated regularly. But Bloxham said LinkedIn so far was more about communicating with other industry participants than it was about connecting with clients. “People are finding me, connecting with me,” Bloxham says. “Sometimes they are lenders and they connect with me to promote their business and refer both ways. “ She said it was likely LinkedIn would not be a way to find people who were looking for a mortgage but could end up helping her serve her clients better. “I get people asking to connect so I look through them and think ‘why’ and then see they have some connection to the industry.” Bloxham said it was a helpful way to keep track of what was on offer in the market, particularly for clients who needed a solution that was something out of the ordinary.

FACEBOOK: JOHN BOLTON Squirrel Mortgages might have more than 4000 likes on Facebook but its founder John Bolton says he is not very good as social media. “It’s really hard to maintain that stuff, certainly for me,” Bolton says. “I’m Generation X and social media, for me, is pretty hard. Women are far more social than men.” Squirrel Mortgages posts a Facebook update to its followers every day. But Bolton said the key was to keep it conversational and not start advertising to followers.

" If you’ve got thousands of people reasonably engaged with the brand ultimately if someone asks them ‘I need a mortgage who should I go to’ you pick up that referral." – John Bolton

“It’s pretty soft, we don’t approach it with really strong demand creation because the reality is we’re talking to our own clients, the last thing they want is to be bombarded with stuff they don’t want in their Facebook feed. You’ve got to keep social social and don’t turn people off.” He said the business tried to focus on quirky, fun posts, identifying funny articles or posted about interesting houses. “People like stuff to brighten their day.” Each week Squirrel runs a competition. “It’s quite time-consuming. It’s not cheap, especially if you are running little competitions all the time. But it keeps clients engaged and keeps the brand visible.” Bolton said social media was a big challenge for business owners. “I don’t know there is a strong tangible link between social media and writing mortgages. You can invest a huge amount of time without getting any business at all. We don’t do it to generate business but we do it and do a fair amount of it to support the brand and achieve engagement levels with the clients. “If you’ve got thousands of people reasonably engaged with the brand ultimately if someone asks them ‘I need a mortgage who should I go to’ you pick up that referral. Most marking is not direct demand creation and social media is exactly the same.” Bolton suggested brokers who did not have as recognisable a business brand could use their own Facebook profiles to talk about home loans and promote their names. “Businesses have a voice and it’s just expressing that across different platforms and channels.” He suggested many mortgage brokers could do well to outsource their social media management to experts.

TWITTER: JENNY CAMPBELL Getting the message out fast is what attracts Mortgage Supply Co. to the short message service, Twitter, chief executive Jenny Campbell says. “Twitter is great for breaking news, like the OCR reduction, that sort of thing because I do think it’s really good for people to go to get quick updates.”

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" Twitter is great for breaking news, like the OCR reduction, that sort of thing, because I do think it’s really good for people to go to get quick updates." – Jenny Campbell

On an average week they would tweet daily, linking to stories ranging from a multimillion dollar mansion donated to the fire service to burn, to the latest financial advice on their online blog. “We don’t interact a lot with clients on Twitter but a lot of that stuff opens up a window to our website or Facebook page,” Campbell says. “Facebook is like the new Google for financial

services. Because as we all know personal recommendations are absolutely gold in our business and the place people like to share their experience with advisers is on Facebook.” “It’s the old story, if your brand or your name keeps coming up on Facebook feeds, they’ll keep remembering you.” The company hires a contractor to manage their social media platforms and encourages their advisers to have their own pages to connect with potential clients. That’s the difficulty with any sort of regular marketing, it gets quite time consuming so we have a professional to do it. “We create a lot content for them, so we might tweet an article on the Reserve Bank OCR cut or the new investor rules. They can break that down into social media [size]. “It’s hard to quantify how much business comes from that but it is the easiest and the most cost-effective way to have your brand out there in the public.” Nailing the tone of their posts were also important, Campbell says.

“It depends on the target market. In our company, we have two really strong areas of clients. The first is the professional investor.... the other area we are getting quite a lot of traction in are the people new to using a mortgage broker. “So they see the Mortgage Supply brand as being little bit more cooler than some of the others in the market, a little bit more casual, a little bit more friendly - less intimidating. “So we very much try and keep the tone of those sorts of posts, really casual, easy to read, relevant. Interesting bits of information.” Campbell said they were exploring other platforms to eventually incorporate into their marketing such as the live video broadcasting app, Periscope.

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TRADE ME: JEFF ROYLE If you’re lurking around the Trade Me real estate messageboards and ask a question relating to a mortgage, you’re likely to get a quick response: “Talk to Jeff.” The messageboards are part of the Trade Me “community” and allow members to discuss issues and ask questions of each other. Jeff Royle, of iLender, has developed such a following that members are quick to refer business to him and ask for help when they need his specialist advice. But Royle says achieving that status has taken time. Members are not allowed to directly promote themselves on the messageboards so getting his name known has been a slow, subtle process. “What I’ve done is every time I’ve seen a threat about a mortgage-related issue, I’ve made a generic comment, which has been over seven years now. I’ve developed a bit of a following so if anyone says ‘help I need a mortgage’ or whatever it might be quite often now people I’ve never met put posts up saying ‘speak to this guy’. And then the phone goes or I’ll get an email.” He remembers one incident where a member posted at about 6 o’clock one night saying that they had come home to find a

" What I’ve done is every time I’ve seen a threat about a mortgage-related issue, I’ve made a generic comment" – Jeff Royle

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Barfoot & Thompson mortgagee sale sign in their front garden. “I saw it by chance 10 minutes after it had gone up. Already one person had said you need to speak this guy. “I saw it and thought ‘this is really urgent, this person needs to do something about it’ so I broke the rules and I said ‘you need to call me now, this my phone number’. “The next about four or five posts were other people jumping on me saying ‘you’re breaking the rules you’re not meant to self-promote, you’re a bad boy’. “Then what was interesting was about 20 people jumped on those people and said ‘bugger off, this guy knows what he’s doing, this person needs help, wind your necks in and let him do his job.” The original poster phoned Royle and he went to see her that night. It turned out her husband had lost his job without telling anyone and had diverted all mail and phone calls. Royle was able to refinance the loan. He said they key to engaging with the others on the message board was not to ram a message down their throats but to maintain a constant presence. “If it’s a bit quiet I’ll start a post. It won’t be saying ‘come and use me’ but I might comment on the OCR or say 'Westpac has this good two-year rate’ or ‘these are the Reserve Bank’s changes and here’s how you can get around them’. It’s general comments people pick up on, click on your name and it takes them through to the Trade Me page where they can call or email. “It’s time expensive but it’s not dollar expensive.”

"One of our younger employees used Instagram a lot and recommended we use it to connect to a younger audience.” – Adam Thompson

INSTAGRAM: ADAM THOMPSON Capturing a younger audience is what has led My Mortgage to try their hand at Instagram. Their account on the photosharing platform shows a mixture of pictures at their Waikato office and motivational quotes making full use of hashtags to capture digital traffic. “One of our younger employees used Instagram a lot and recommended we use it to connect to a younger audience,” owner Adam Thompson says. “It’s great for awareness and we do have people like and share our posts “We measure where all new business comes from and none has come directly from Instagram but we feel it fits well with our overall marketing to a younger audience,” he says.

YOUTUBE: BRIAN MACLEAN Why read, when you can watch is the option the Wellington Mortgage Broker is offering its potential clients. Owner Brian MacLean says their YouTube videos are about breaking down common mortgage topics into fast, digestible information. His company aims to upload one a month and has covered issues such for first home buyers, refinancing and HomeStart grants. “We use YouTube because it’s easy to upload. There’s no hosting cost and it’s nice and easy to embed into your website,” MacLean says. “The reason we use videos is just to get information across as quickly as possible. Expecting people to trawl through pages and pages of information is probably unlikely. So we’ve put together some quick videos that you can watch on your computer or on your phone. An overseas contractor is used to produce the animated videos, needing very little input or direction from MacLean. “It’s fairly short, it only takes a short explanation of what we’re looking to achieve. We had good work from the guy so he has a good feel for it,” he says. “It’s a nice, easy process. We just fire off a few lines, the words that we want in there, the script and that’s job done. “Ultimately what we’re trying to do is have a video on most pages [on the website]. Again, it’s giving the person the option on either reading through a lot of stuff or if they don’t have time to do that what watch a quick 20 or 3 0 second video or they can do both.” The videos are posted to their Facebook page but the YouTube channel and its website were the main platforms they were using, MacLean says. “We don’t specifically ask people how they found our site so no one has specifically offered any feedback on the videos yet. The business is relatively new so trying to work out how

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"Expecting people to trawl through pages and pages of information is probably unlikely." – Brian MacLean

Branded and Non-Branded Options Promotion on Website Advice Process and Flowchart

effective they are at this stage is quite difficult,” he says. “Over time, we’ll put that in place and just work out how people are using the website and how they’re ultimately getting to us.” MacLean says he’ll be looking at doing some video blogs instead of the traditional format in the future. The Wellington Mortgage Broker also found some success through online chat on its website. “It’s not used massively but it does suit some people. We might get a couple of contacts via that per week. I have it connected it up to my phone, so wherever I am I can respond to it there and then,” MacLean says. “Some people may not want to use email and if they have a question they can just fire it across and get an instant answer.” ✚

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REGULATION

Are new adviser compliance levels Planned Government moves to increase compliance standards are sending shivers through the mortgage brokers industry.

ortgage brokers are being told to prepare for major regulatory change but some in the industry are warning many advisers may

struggle to cope. The Financial Advisers Act review continues. Recommendations for change are due to be presented to Commerce Minister Paul Goldsmith in the middle of the year. An options paper released by the Ministry of Business, Innovation and Employment (MBIE) makes it clear the path it looks likely to take,

and it is not good news when it comes to the regulatory expectations of mortgage brokers operating as registered but not authorised financial advisers. All three packages outlined by MBIE would require all advisers to comply with the same ethical obligation to put consumers’ interests first and provide a simple and uniform type of disclosure. Other suggested changes include requiring all adviser businesses to be licensed. The final result may be a combination of one or more packages, but either way it looks almost certain that advisers will have more compliance with which to contend.

MORE PAPER WORK

❝ Whether we

like it or not, a mortgage is very much a commodity. People are more savvy than ever about what they want. ❞ – Jenny Campbell

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It seems likely that under a new version of the Financial Advisers Act, those who are not yet operating as authorised financial advisers will be required to meet qualification standards and may have to provide much more paper work to record the advice they give clients. That has prompted accusations of overkill. Industry body SiFA wrote to MBIE in response to the options paper asking why it wanted to clamp down on registered financial advisers. Robert Oddy and Murray Weatherston wrote that there was insufficient evidence that those operating as RFA or QFE advisers were doing harm because of it. “The poorest reason for raising the regulatory bar for non‐investment financial advisers is because they are now regulated differently from investment advisers. Surely you should be demonstrating problems and harm before even starting to consider regulation," they said. They said MBIE had argued that it did not want to change the exemptions in the law for lawyers and accountants, because there was no evidence it was causing consumers harm. “Why would you treat similar issues differently?” The pair said if the concern was that mortgage advisers were putting their clients into the wrong type of mortgages, that should be backed up with examples of complaints, either to disputes resolution schemes or the courts. “We are not aware that body of

evidence exists.” They said the cost of the existing regulation to the industry had been more than $100 million and had not provided benefits near that level. Weatherston and Oddy said: “Raising the regulatory bar for investment advisers has had some perverse outcomes. Making it harder (more paper work and more costs to the customer) for genuine advisers to provide advice, has led to many potential investors turning to their family, friends, neighbours, tip sheets or their lawyer and accountant for advice. Perhaps all these people should be brought into the regulatory net as well?”

SENSIBLE APPROACH Jenny Campbell, former head of the Professional Advisers Association (PAA) and now chief executive of The Mortgage Supply Co, said she hoped a common sense approach would be taken and the Ministry would realise that insurance and mortgage advisers were low risk. “Regulation does not enhance the consumer experience at the moment,” Campbell said. “People don’t know the difference between an RFA and an AFA. If the requirement is for mortgage brokers to operate at AFA [compliance] level, that’s complete overkill.” She said it was potentially a turnoff for clients to have to go through a lot of disclosure documents for what was normally a simple transaction with low risk. But she said some advisers could benefit. “Having good processes makes so much sense and the more compliant an adviser is with paper work the easier business processes are as well, you keep on top of things such as fixed‐rate rollovers so it can be a good business tool.” But she said it would not be fair if mortgage advisers had to work to higher regulatory standards than bank staff. High‐volume mortgage brokers in particular would struggle, she said. “Very few clients have that much time or interest in going through the process. Whether we like it or

overkill?

not, a mortgage is very much a commodity. People are more savvy than ever about what they want. It’s important that you get the full background but to do the whole kit and caboodle is complete overkill.”

ADVISERS BENEFIT The PAA, which represents more mortgage brokers than any other professional body, said it hoped to see some key outcomes of the review, which could benefit registered advisers. Compliance specialist Angus Dale‐Jones said: “We think there is a huge opportunity for increased clarity for RFAs if they are brought within the scope of the [Code of Professional Conduct for Authorised Financial Advisers]. Instead of operating to a very nebulous 'care, diligence and skill' Standard, RFAs would have more precise requirements set out in the code; and the code would be written not only for AFAs, but for all advisers. This is the best way of ensuring that the work undertaken by RFAs is proportionate to the complexity of the advice that they are giving.” Rod Severn, chief executive of the PAA, said: “We need more consumer clarity about the options available – and how to use them. So, we want to see more straight‐forward

information for consumers about how to interact with advisers. We also need an advice system that is more adaptive Rod to the client’s specific scenario, to reduce current barriers and complexity for advisers.” At the same time, there are moves in Australia to assess the commission mortgage brokers are paid. Australia’s regulator has outlined its focus for a review of mortgage broker remuneration. The Home Lending Market Review, to be conducted by ASIC, will consider the mortgage broker market in the context of the wider home loan market, ownership structures and their impact on consumers’ access to products, loan performance and outcomes. All remuneration structures are set to be examined, including soft commissions.

SIGNIFICANT DIFFERENCES ASIC wants to identify whether differences between the type, nature and structure of payments made at individual, broker business, aggregator and lender levels are significant. About 50% of Australian home loans are written via brokers.

ASIC is holding a series of roundtable events with the Australian industry. The review is set to report back to Severn the Australian Government by the end of this year. Severn said it was hard to tell yet how much impact the review could have, because it was still in the scoping stages. But he said the review of the FAA was such a focus from a regulatory perspective that other inquiries were unlikely to get as much attention. “The FAA review is what we are working on and it’s giving us clarity on our industry,” Severn said. “We welcome these types of review because the end result is a better, more robust, industry.” He said the New Zealand mortgage market was quite different from Australia’s, where more lending was done through aggregator channels. “Here already commission is off the table. The Minister has said commission and remuneration are not part of the review. That stops any real direct outcome. We will have to wait and see what happens. New Zealand will take notice of it but it will not directly impact us here.” ✚

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SALES & MARKETING LEGAL By Paul Watkins

Are you advertising the right thing? While getting your name and service out in the public domain is good for brand awareness, there needs to be something more to compel a potential client to ring. Paul Watkins explains why the strength of your message is always critical.

hile I have written a number of times in here of how advertising is losing its impact and that it’s not easy to advertise a service, large numbers of you still do. That’s fine if you are getting a return from the ads, in which case, keep running them.

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But most that I see or hear do not offer any perceived competitive advantage or compelling reason to call. So this article is about how advertising works from a message perspective. It’s not about the choice of media, that’s a different topic. But whatever medium you choose, be it radio, press, social media or existing client contact, the strength of the

message is critical. I hope to be able to offer you a greater understand about constructing the message, which will help make your advertising more effective. First, there are three basic types of advertising, each one having a specific application or best time to use them. The first is to inform. This is as it sounds, simply to inform the reading or listening public about what you offer. But it’s

❝ Don’t look for

special features or deals to be done with mortgages, look for new ways to talk about your service. ❞ how you tell them that is the key. This would be used to launch a new product, explain how something works, that you have moved, you have a new key staff member or that you simply exist. It is also used to inform when an old product has been updated. Shreddies is a breakfast cereal made of wheat squares. You may know it. They turned the 60-year-old square cereal that was slowing in sales by 45 degrees and introduced new and improved Diamond Shreddies! The company held taste tests where customers actually said "The Diamond Shreddies have more flavour!" You can view the very successful campaign on YouTube. The lesson here is that they found a new way to talk about the same product. Don’t look for special features or deals to be done with mortgages, look for new ways to talk about your service. The second type of advertising is the type that persuades. This is used to persuade customers to change brands. It is used in high competitor activity environments and will offer benefits unique to that brand or that clearly differentiate it from others. Banks use this a lot, with 0% interest on credit card switching, stand out loan offers such as the 10-year fixed rate from TSB and so on. Pak ‘n Save supermarkets do this by comparing a trolley load of groceries purchased at their store compared to the same trolley load bought at New World. As you do not control your own product, you cannot use product differentiators, but you could use persuasive advertising if it focuses on a specific strength of your service. For example, “The expert to self-employed clients” or “The expert to those on a commission income” or “Want a lower rate but the break-fee is too high? We specialise in breaking fixed-term mortgages at high rates.” Get the idea? Find a speciality that may set you apart. The third kind is to remind. This is used with an established market. An example is Coca Cola, which does not require an explanation, but having remind ads around stores can reinforce the distinctive colour, logo and have that in customer’s minds as they walk into the store. For you, this is directly to existing clients via newsletters to remind them about coming back to you for mortgage changes. Once you have decided on the type of message – to inform, persuade or remind – next comes the execution style. This refers to the style of delivery of the message. There are many, but I will explain some of the main types. The first is "factual". This means using logic or

key facts to have customers buy. An example is toothpaste which might advertise, “a full 12 hours protection and reduces plaque up to 98%.” It’s all facts that are hard to refute. In your case it may be, “I can access 25 lenders.” While not all potential clients may care about a message like that, it is an undeniable fact that you are presenting. The second kind is called "slice of life" and can be very powerful, as viewers/readers/listeners can personally relate to it. This type offers a problem and solution and shows a real life (sometimes exaggerated) situation in which the key message is demonstrated. Examples are “My oven used to take me two hours to clean, but now with Zippo, it cleans itself while I can go and relax.” For you it may be, “I was declined by two banks because I was a self-employed salesperson. But when I contacted Wendy Smith Brokerage, she got me the loan I was after.” That would be a terrible ad, but you get what I mean. Find a real-life problem and then contrast it with a solution provided by you. The next execution style is to put “humour” in the ad. This can have huge impact, but is often short lived. A current example would be the Toyota ads that include possums caught in the headlights. The best way to make such ads work is to have a small series of them. ASB’s Ira Goldstein is a classic example. In your case, it could well work. I have not seen humour used in a brokerage. It requires a lot of imagination and skilful execution. Another type is "celebrity endorsement". A good example is Kevin Milne endorsing Carpet Mill in their TV ads. The trick here is obviously to get a known celebrity to endorse your service. This is not easy. A brilliant example of another style, sometimes called "metaphor" is seen in commercials for Always feminine products. It is very meaningful as the message is clear and simple – to "be like a girl" is in fact an insult, and as girls between 10 and 12 can experience a drop in self-esteem, this doesn’t help as an expression. It is believable as the actors are real and unrehearsed. It is very easy to put yourself as a member of the target market in their shoes. The distinctiveness comes from the human emotional approach to the subject and not the benefits of the product. The product isn’t even mentioned, as this is designed to make the brand relevant to your life and one that you can trust to understand you. Go to YouTube and search for "Always be like a girl" and watch the clips. Watch them a few times. The campaign was immensely successful and it is an outstanding example of promoting something without even mentioning the product, but building an emotional brand image. Coming up with great ads is not easy. In fact it’s really really hard. But if you involve others slightly distant to your brand (who can offer an objective viewpoint) and give serious thought to what your message type is and then the best execution style to get it across, you will be on the right track. Paul Watkins writes blog content and newsletters for financial advisers.

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MY BUSINESS By Dana Kinita

Transiting from banking to brokering As a gentleman who is aggressive in business, Ian Woods found his background in banking has served him well in brokering. He talks to Dana Kinita. HOW DID WORKING IN THE INDUSTRY COME ABOUT? I was with National Bank for 10 years, being in retail banking, as one of the original countrywide bank mobile managers, brokering was a natural progression. HOW LONG HAVE YOU BEEN A BROKER? For 14 years. HAS IT ALWAYS BEEN A PASSION? I enjoy the profession, particularly the difficult scenarios but I wouldn’t call it a passion.... fishing is a passion.

❝ So true when

you’re navigating your way through hurdles; there’s nearly always a way around them. ❞ 024 WWW.TMMONLINE.NZ

WHAT IS IT ABOUT BROKING YOU LOVE/ ARE PASSIONATE ABOUT? Meeting new people each day and piecing together a solution for them, everyone’s an individual and then when you’re dealing with a couple it’s about a helping them find a compromise in terms of their individual goals... money can create lots of anxieties, talking through things with them and giving them comfort they are doing what most others do to achieve their goals can help to alleviate that. HOW DID YOU LEARN THE BUSINESS AND EDUCATE YOURSELF? DID YOU HAVE A MENTOR? Not any longer per se, but I am certainly motivated and supported by the professional contacts I have. My background in retail banking made for an easy transition. BEST AND WORST TIMES IN THE BUSINESS? No worst times really...certainly disappointing when you’ve put hours and hours into a proposal and it just doesn’t get off the ground, that can take its toll if it happens too often. Overall, it’s been a well planned, good run for me. Best times are probably when a nice client secures the house they’re so scared of missing out on; the bank's happy, the

client’s happy and I get paid.

BEST AND WORST BUSINESS MOVES YOU’VE MADE? Investment in expensive advertising has been a bit of a mistake, word-of-mouth by far outweighs advertising. We never stop learning. BEST AND WORST ADVICE YOU’VE RECEIVED? “The trick is, don’t panic,” Murray Rae, Bendon. So true when you’re navigating your way through hurdles; there’s nearly always a way around them. I haven’t taken any bad advice. I am a fairly good judge of character after a career of dealing with people daily; the bad advice was probably gracefully received and then set aside. BIGGEST CHALLENGE NOW, APART FROM THE MARKET? Probably regulation but that’s obviously largely unknown. WOULD YOU DO IT ALL AGAIN? Most definitely. BEST BUSINESS BOOK? I’m not an avid reader....Rich Dad Poor Dad

had some very good concepts in terms of being a business or being a worker; not sure I took the message to heart of being a one-man band.

IS THERE A TYPICAL WORKING DAY? Not really a typical day for me. I’m up early and exercise with my dogs [followed by] lots of coffee and work until everything that’s urgent is done. Often that’s until late evening. It’s very flexible being self employed so I do try to make time for me, even if it’s only an hour a day doing something I enjoy, perhaps a quick fishing trip on the Hauraki Gulf if the weather gods are playing nicely. WHO HAS MOST INSPIRED YOU IN BUSINESS? Murray Rae, a very successful Auckland businessman with a lifelong connection to Bendon. I spent lots of time hunting and fishing with him in the Far North and learning about business, how important honesty and integrity are and "life". He taught me you can be aggressive in business and still be a gentleman. I was incredibly lucky to be one-on-one with him in some of the most remote places where we shared our stories and challenges, he had often been where I was 100 times

before, in terms of a challenge, so I was privileged to get his insight while having time away from the hustle and bustle of Auckland city. He still inspires me despite sadly passing away recently. He’d be disappointed if I didn’t mention that he taught me all I know about hunting and fishing, too.

WHAT IS YOUR BIGGEST LONG-TERM BUSINESS GOAL? To turn my business into a saleable asset. Quite a challenge which would change things radically for me, so it’s probably quite long term. Then I’d be bored if I sold. It’s quite a conundrum. HOW ARE YOU PREPARING FOR REGULATION OF FINANCIAL ADVISERS THIS YEAR AND HOW WILL THIS AFFECT YOUR BUSINESS? I’ve never been one to worry too much about regulation. At the end of the day, I do my best and look after my clients in an honest and professional manner. If requirements are to be met in terms of regulation then we all need to meet them as they are rarely negotiable. I focus on my business and what I can change there, not the business of the lawmakers. ✚

Ian Woods Business: Ian Woods Mortgage Ltd, Auckland Family/ children? I have two adult children, a son and daughter who make me a very proud dad. Hobbies outside of work? I love being outdoors, boating in the Hauraki Gulf is a passion, Piha is probably my favourite place on the west side having spent a lot of time their in my youth. I enjoy trying new cuisine, locally that seems to have improved a lot. Sporting interests? Enjoy following the Brisbane Broncos and am quite keen to see how the Blues go this season under Tana [Umanga]. They're overdue for a better performance. Most satisfying element of your profession? The flexibility the role brings can make for a good lifestyle, I have also met some great people along the way and made some strong friendships while doing business... that’s very satisfying.

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INTEREST RATES Tony Alexander

Economic Commentary March 2016 BNZ chief economist Tony Alexander gives his expert opinion on monetary policy, housing and the NZD. Monetary Policy Eased Again The global story currently is one of deepening worries about prospective growth rates, high volatility in financial asset and commodity prices, and central banks easing monetary policies to try and boost growth and stoke some inflation. The fact that central banks are still doing this almost eight years after the global financial crisis hit its strides in late-2008 means that such easings to date have not done the job. In New Zealand our central bank has responded to the deepening worries about world growth, rise in bank funding costs offshore, rise in the NZ Dollar, falls in local inflation expectations, and decline in dairy incomes by cutting the official cash rate on 9 March 2016 from 2.5% to 2.25%. They have signalled a further cut as likely and that probably will come in June though April cannot be ruled out. Since March 1999, the Reserve Bank has used the Official Cash Rate (OCR) as its tool for controlling inflation. By setting the OCR, the Reserve Bank is able to influence short-term interest rates such as the 90-day bank bill rate, as well as long-term interest rates and the

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â?? New Zealand

offers higher interest rates than on offer in other developed parts of the world.â?&#x17E; foreign exchange rate. Data on the OCR and 90-day bank bill rate is available from 1990. One thing to keep an eye on in coming months will be the response of investors to their worsening outlook for returns on simple bank deposits. As investors factor in lower returns on low risk assets they will increasingly chase returns on other assets. This is why we have foreign parties seeking properties in New Zealand and it is likely that affected investors here will initially look for corporate bonds then join the crowd and look for higher property exposure.

Housing Aucklanders since just before the middle of 2015 have been buying assets in the regions. The locals have seen this and joined in. Construction in the regions is rising now that supply is drying up and people are buying into stories of Auckland being so expensive that there will be a flood of people leaving the city to live in our smaller urban locations. They wonâ&#x20AC;&#x2122;t in bulk numbers, though a few people will and the local media will write about them. There will be over-investment in new subdivisions and dwellings in some areas because of overoptimistic population growth forecasts and eventually, a few years from now, this will cause problems for some late cycle investors. For now the ball is rolling. Many investors are still adjusting to a world of permanently low interest rates and they have yet to enter housing markets. Their buying will help underpin all locations these coming couple of years. The Chinese buyers will eventually come back into Auckland as they find ways to get capital off the mainland. Migration net inflows will stay strong and remain concentrated in Auckland, worsening

Since March 1999, the Reserve Bank has used the Official Cash Rate (OCR) as its tool for controlling inflation. By setting the OCR, the Reserve Bank is able to influence short-term interest rates such as the 90-day bank bill rate, as well as long-term interest rates and the foreign exchange rate. Data on the OCR and 90day bank bill rate is available from 1990.

the housing shortage, pushing prices higher. House building will be a strong source of economic stimulus for the economy in all but Christchurch over the next two or three years. Construction costs will rise, difficulties sourcing tradespeople will grow.

NZ Dollar If the kiwi dollar was going to fall strongly on the back of lower dairy prices then it would have done so by now. It is already fully factored into expectations that dairy producers will have three bad seasons in a row and that this will dent New Zealand’s export earnings. However, to the extent that the balance on goods and services exports and imports matters to exchange rate movements and it doesn’t really over less than the very long-term, there is massive offset to dairying weakness.

This offset is coming from the likes of tourism where visitor numbers have soared over 11% in the past year and their spending has risen three times more than that. This is fostering an investment surge in tourism assets and employment growth in the sector. The export education sector is also growing strongly with a surge in Indian student inflows. Conditions and growth are reported to be good in sectors like honey, wine, pipfruit, forestry and beef to a lesser extent. New Zealand offers higher interest rates than on offer in other developed parts of the world, even after this morning’s 0.25% rate cut, our economy is nicely deregulated with high rankings on many economic scorecards like low corruption and ease of starting a business and accessing credit. The government’s accounts are in good order with the latest

two months’ accounts coming in better than expected and leaving open the possibility of a surplus for the second year in a row. There is also good support for the overall pace of economic growth not just from non-dairy exports but construction, strong consumer spending growth, infrastructure spending, and of course the ongoing and yet to peak migration boom. With so many positive things happening it is not surprising that the Kiwi dollar retains a lot of strength at a time of rising pessimism around the world regarding geopolitical stability and the pace of global growth. ✚ An unabridged version of this article was first published on www. TonyAlexander.co.nz on 10 March 2016. Tony Alexander is a chief economist at BNZ

The views expressed in this article are Tony’s own and do not purport to represent the views of the BNZ. This publication has been provided for general information only. Although every effort has been made to ensure this publication is accurate the contents should not be relied upon or used as a basis for entering into any products described in this publication. To the extent that any information or recommendations in this publication constitute financial advice, they do not take into account any person’s particular financial situation or goals. Bank of New Zealand strongly recommends readers seek independent legal/financial advice prior to acting in relation to any of the matters discussed in this publication. Neither Bank of New Zealand nor any person involved in this publication accepts any liability for any loss or damage whatsoever may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this publication.

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PAA LEGAL

Don’t miss the adviser event of the year

Last year's joint IFA/PAA conference was well-attended.

ogether Towards Tomorrow, the National Advisers Conference 2016, will be held at Sky City in Auckland, July 28 and 29. We spoke to CEO of the Professional Advisers Association, Rod Severn, about the event and what advisers can expect.

things about the conference is the opportunity to step outside of your business. It’s a chance to put the doing down; to glean insights from expert speakers and from other advisers; and then apply those to your business to take the next step – whatever your goals might be.

Q: This is the first year that the conference has been run as an annual event. Why the change? A: Two years is a long time, and a lot is changing in the adviser space at a rapid pace. The environment advisers operate in today is already different from June 2015 when we held the last conference. Sometimes the change is subtle, sometimes it is loud. Conference is an opportunity to take stock of your business and goals; a breather to prioritise the next big moves.

Q: Who are the keynote speakers? A: Conference this year will be MC’d by Mike King, and early confirmation of keynote speakers includes Karen Schaeffer, Mai Chen, Dr Oliver Hartwich, Steven Bradbury and Julia Hartley-Moore. It’s a great line-up of business and advice experts, as well as leaders with truly inspiring experiences to share with attendees. There is a lot more information about our international and New Zealand keynote speakers on the Conference website – nationaladvisersconference.co.nz.

Q: What in your view is one of the key reasons for attending the conference? A: Networking, learning, connecting with providers – there are a multitude of reasons to attend Conference. But one of the most valuable

Q: You’ve mentioned that the conference programme is a bit different this year... A: We took a good look at the feedback from the conference last year to inform what we would offer in 2016. A key insight from

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attendees was that they wanted some sessions to be longer, and more in-depth on specific advice specialties. There is also a range of business skills sessions (technology, relationship development, brand and more), and sessions that delve into personal productivity. It’s a great mix of expertise, business and life. Q: How can advisers find out more about Conference? A: Advisers can visit www. nationaladvisersconference.co.nz or call either the PAA or IFA for more information. Together Towards Tomorrow – Registration dates Super Early Bird: $575 plus GST - closes March 31, 2016. Early Bird: $650 plus GST - April 1 to May 31, 2016. Standard: $725 plus GST - from June 1, 2016.

INSURANCE By Steve Wright

Clients can’t do Life Insurance, why clients can’t do it themselves and why they need you. By Steve Wright.

any people seem to think that, when it comes to life insurance (life, disability, medical), they can do it themselves. Even at a recent financial adviser industry event it was suggested to me that (when it comes to insurance) “you don’t need advice, you can do it all yourself!” After all, the information needed is on the internet – right! (Well, wrong, actually. Much of the knowledge, information and understanding necessary to do a proper job, including policy wordings which many insurance providers do not make available on

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their websites, is not conveniently available on the internet.) Clearly this person did not understand the complexities involved in putting together and maintaining sufficient and efficient insurance. In my view, "doing it yourself" is about as sensible as defending yourself in court – usually a very expensive option!

Do it yourself folly Why is it folly to think you can do it yourself? This is a question which requires a good answer because it goes to the very reason for an insurance adviser’s existence. Most clients will not know the answer either, and, if you

want to have many clients you will need to help them understand why they need you (and can’t do it themselves). So here is my attempt at answering this most important question – in a few parts: You can do it yourself but not if you want to do it properly. Building a sufficient and efficient life insurance portfolio, protection package, whatever you choose to call it, requires two things: ➊ Accurately calculated levels of cover for all risks you are not prepared to take and fund yourself. ➋. At the lowest possible cost (which does

it themselves not mean “cheap”). Getting this mix right takes a great deal of knowledge that most people simply do not possess (and more importantly, even understand they need). Insurance advisers – compliant ones at any rate – understand: ➤ The risks people face and how to properly quantify both the direct and indirect financial consequences those risks can bring – we call it a needs analysis. Human nature leads us to take mental short-cuts when making decisions. We are most likely to make decisions based on emotion and experience, not on careful objective evaluation and calculation. Insurance advisers are trained to make these evaluations and calculations. ➤ Why, health, occupations, financial matters, hobbies and pastimes may create challenges to getting insurance and how to find possible solutions to these roadblocks – not simply stop the process. This kind of information is not usually available to the general public. ➤ What the different types of insurance products do and don’t do. This information can be found if you look hard enough but only at a relatively basic level. What only an experienced adviser can do is figure out how best to combine the often numerous different products and policies required to achieve sufficient and efficient cover. The number of options, combinations and variations are staggering. ➤ Which provider’s product will be most appropriate and efficient. It will usually come as a surprise to most people that product provider selection is critical. It can mean the difference between a claim payment or not. Good advisers understand that it makes sense to get the best product you can, not necessarily the cheapest or most convenient. ➤ Why convenience (few questions at application time) usually means inferior cover (no cover for pre-existing conditions for instance). ➤ The insurance applicant’s legal duties

❝ We are most

likely to make decisions based on emotion and experience, not on careful objective evaluation and calculation. ❞ of disclosure and how best to ensure full and proper disclosure of health, occupation, pastimes, financial matters and so on. Advisers can provide invaluable assistance in properly filling out the forms and coaching clients through the process.

➤ Understands that insurance is not just an expense to be minimised: it is a valuable asset and quality always pays off. ➤ Understands how to combine particular products to take advantage of ancillary benefits and avoid duplication. ➤ Can advise on the most efficient premium structure having regard to your likely needs. ➤ Can advise on the most appropriate ownership structure – getting that wrong can cost big too. You can do it yourself but who will handle your claim? Aside from the convenience of having someone to do all the running around when you are sick, a diligent adviser can be your advocate in times of dispute, which can mean the difference between a claim declined and a claim paid.

Premiums the same

A skilled adviser:

But why would you want to do it yourself? After all the above, here is the kicker. It typically costs the same premium whether you do it yourself or go through an adviser. Doing it yourself is very likely to lead to confusion, indecision and inaction. Since it is essentially free, why go through all the hassle and risk yourself? Find a good, no, find a great adviser, one whom you trust and who knows what they are doing and then take the time to do the application properly (most good products have a built-in benefit upgrade feature and opportunities to increase cover without medical underwriting, so doing it once may be all you ever need). Finally, relax, knowing your premium spend is not wasted and that you are properly covered should the unspeakable happen. ✚

➤ Knows that paying a premium for something that may not work when you need it to is the most expensive option. ➤ Knows why some products cost more than others and whether or not that represents good value.

Steve Wright has qualifications in law, economics, tax and financial planning and is general manager Product at Partners Life.

You can do it yourself but only if you don’t care about the costs. It’s not about the premium. You can compare some premiums online but that is relatively useless with many products because you can’t tell what value the premium gives. Doing it yourself to save a few bucks by focusing on paying the least could be the most expensive option and could cost millions lost in benefits you don’t qualify for at claim time – this is the significant cost!

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LEGAL By Jonathan Flaws

online

Nailing mortgages

Unthinkable way back when, Jonathan Flaws writes how mortgages online can be effective today.

hile cleaning out my bookshelves recently, I came across an old book from 1992 entitled Internet for Dummies. Back then, the internet was still in its infancy. It was not clear how it would develop and its future usefulness. Looking forward, the authors John R Levine, Carol Baroudi and Margaret Levine Young suggested the internet would be most useful for emails and instant communication. They didn’t see the internet taking off as a commercial medium to enhance trade or business. You would use it to talk to people but really to buy anything. Looking back, the authors could not have been more wrong. The internet has exploded as a means of connecting people for

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commerce (Amazon, eBay and Trade Me); for social interaction (Facebook and Instagram); for access to information (Google and Bing) and for connecting people for personal relationships through online dating websites. It has become invaluable in the mortgage business for communication with existing clients and for back office communication between brokers and lenders and lawyers. But it doesn’t seem as if it has been much use yet in selling mortgages. It can be useful for lead generation but it can’t seem to replace the human interaction required to sell a mortgage.

FORMING RELATIONSHIP A mortgage is often cited as one of the biggest financial commitments in which a person can enter. You could also describe forming a long-term personal relationship and finding

a partner as a large financial commitment, particularly if you have to unwind it after two or more years together. The dating industry has found a way to use the web to create and consummate successful relationships so why can’t the mortgage industry? The Credit Contracts and Consumer Finance Act 2003 assumes that lenders are likely to use the internet as a shop window. In the responsible lending section it requires lenders who have an internet site to display prominently the terms of any standard contracts as well as information regarding the costs of borrowing.

NET SHOPPING The CCCFA assumes that consumers will use the net to shop around for credit. Really? Will they

actually shop on the net to show how effective the net is in capturing them when they do? Most purchases on the internet require you to use your credit card. For purchases at that level, the net is a very convenient and useful way to shop. It’s great for online retailers because it reduces overheads. It’s also great for impulse buying because once you clicked submit it is hard to retract and change your mind. For products not needing the buyer to make an informed decision to buy – product which can sell solely by emotion or need – the internet is great way to do business. But a mortgage is nothing of the kind and requires a significant amount of effort on the part of the borrower and the lender before the decision to buy is made. Once the decision is made and the loan applied for and approved, a considerable amount of time and effort are involved before the knot is tied and the mortgage marriage consummated. So how effective can the net be in assisting the mortgage process? Provided you understand its limitations and work with the internet, I suspect it can be extremely effective. But you need the right tools and the right approach and the marriage of borrower and lender still requires a matchmaker and a vicar. Some years ago, a website was set up in New Zealand to provide borrowers with an opportunity for a great mortgage deal over the net through a process similar to an auction. The concept assumed that borrowers would fill in some forms, provide some information and make this available for lenders to them bid for their business. But most borrowers find it hard to do all of this on their own. Even if they are able to complete the application and provide sufficient information, they may not be asking for the right loans or putting the information in the best form to make them seem attractive. Very few lenders are likely to take an online application from a prospective borrower at face value. I don’t know how many leads were generated by the website and I suspect not a lot of mortgages were written as a result. That particular website doesn’t exist on the net anymore.

FINDING PERFECT LOAN Perhaps the biggest problem is that a mortgage really is one of the biggest financial commitments a person is likely to make and without the assistance of an experienced professional it can be hard finding the perfect loan. It is apparently not so hard to find the perfect partner online. Apparently the percentage of marriages that come from online dating has increased. Google “What percentage of marriages come from online dating?” and you

❝ You need the

right tools and the right approach and the marriage of borrower and lender still requires a matchmaker and a vicar.❞ will find claims that over 30% of all marriage partners are now found online. It is also claimed by some that such marriages are more likely to last longer and be happier because the parties have had the chance to meet people that are more likely to be compatible with them. Fortunately, you can obtain a mortgage without having to marry your banker and make promises to stick with them in sickness or in health or until death do you part. If online dating sites are so successful, can the factors making them successful also be replicated to marry borrowers with lenders?

EMOTION AND NEED I’m not sure that emotion and need are necessarily two separate items but certainly, they both attract people to use online dating. Property websites such as Trade Me and realestate.co.nz also attract a large number of hits through emotion and need and I suspect that most lenders have sophisticated systems to make sure online searchers find their websites and then stick. I only need to use the word “mortgages” in a search once and then I am bombarded for days with promoted ads for lenders’ websites. We all know what we are looking for in a partner. We think we know what we are looking for in a mortgage.

FICTIONAL INFORMATION Dating sites first gather information about you and your objectives and aspirations for finding a partner, which is no different really to a mortgage. The amount of fictional information or hopeful information is probably as much if not more on the dating sites. The dating sites presumably apply complex social algorithms to categorise each participant according to the stated characteristics and then match them against others to find a list of prospective partners.

A successful mortgage marriage website is likely to do the same thing. Collect high level information about the borrowers’ requirements and objectives and high level information to ensure that the borrowers are likely to be able to make payments under the mortgages without suffering substantial hardship. All of this must be high level because at this stage it cannot be verified and must be taken at face value. Section 9(3) of the CCCFA requires a lender to make reasonable enquiries about these matters. The high level enquiries that a mortgage website will make cannot satisfy this requirement and is really just the first step down this path. Like the dating sites, it will apply complex algorithms and collect a set of potential lenders that are likely meet the objectives and requirements of the potential borrower and be within their financial range.

MATCHMAKING UP to this point, the interaction has just been electronic and the process between dating and finding a mortgage has been similar. Now the process becomes more complex and what happens at this stage determines the success or failure of the match. The dating sites generally now leave you on your own to make contact, develop a relationship through online chatting and eventually meet your perfect match. Hopefully, the person with whom you have been cultivating a relationship is real and not a catfish, the name now given to a person who creates a fake online personal profile and persona. A successful mortgage website, however, cannot afford to leave the prospective borrower on their own. If it does then it’s just a storefront for window shoppers – a spawning ground for catfish. The site needs to introduce the borrower to the matchmaker – a mortgage broker who can then step in and assist the prospective borrower to take the next more serious steps. At this stage, the personal interaction becomes important and the borrower is guided and helped through the process of selecting lenders to approach for loans. The Lender Responsibility Principles as well as the AML.CFT requirements make the introduction of a matchmaker a necessary part of any online mortgage site. Mortgage sites that follow this path exist overseas. You only need to look to Australia to check out how successful they can be in generating leads and keeping catfish out of the net. ✚ Jonathan Flaws is a partner at legal firm Sanderson Weir.

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Intelligence

A look at home loans R eserve Bank figures show total home loans increased $15.2 billion (7.8%) to $209.5 billion in the year to 31 December 2015. In the final quarter the increase was $4.17 billion (2%). Home loans for the Top 5 banks grew $3.7 billion in the December quarter, up from $3.5 billion in the September

quarter.

Total $ Billion

Market Share

Annual Change

Qtr Change to Dec15

Dec14

Dec15

Dec14

Dec15

$Billion

ANZ

60.688

66.431

32.2%

32.9%

5.743

9.5%

1.236

2.04%

ASB

42.347

45.671

22.5%

22.6%

3.324

7.8%

1.086

2.56%

BNZ

30.946

32.443

16.4%

16.1%

1.497

4.8%

0.608

1.96%

Westpac

40.153

42.261

21.3%

20.9%

2.108

5.2%

0.415

1.03%

Kiwibank

14.131

15.144

7.5%

1.013

7.2%

0.348

2.46%

188.265

201.95

100%

13.685

7.3%

3.693

1.96%

TOP 5 BANKS Share of Increase in Home Loans

ASB, BNZ and Kiwibank punched above their weight in the December quarter all growing their loan book proportionately more than their market share. ANZ fell back after very strong June ($1.8 billion growth) and September ($1.5 billion growth) quarters. Westpac saw the biggest drop after a stellar September quarter when it recorded growth in its loan book of $875 million, more than double December’s increase.

TOP 5 BANKS Relative Market Share at Dec 15

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A PERFECT GIFT FOR YOUR PROPERTY CLIENTS To be a successful property investor you don't just have to buy well. You have to manage your property and its tenants well too. One of the best tools to help property investors is this book: The Complete Guide to Land-lording It is written by Brian Kerr. Brian is a successful investor in his own right, but after spending 16 years as a mediator, he is also highly experienced in the workings of the Tenancy Tribunal. This book is a must-have for all investors. If you have a problem or a question around managing tenants then it's likely The Complete Guide to Land-lording will have the answer for you. The book has brilliant tips and case studies are plentiful.

To arrange a special order for your clients call Dianne on 0800-345675 To buy individual copies of the book call or go to www.intelligentinvestor.co.nz

TMM - The NZ Mortgage Mag Issue 2 2016

Articles inside

LEGAL

INSURANCE

MAKING A CONNECTION

PAA