NEWS

ANZ and Westpac and are seeing good growth in advisergenerated business, but the same cannot be said for BNZ.

All three big banks have recently reported their annual results. During the financial year, mortgage advisers wrote 56% of ANZ’s loans - up 10% from the previous year. Overall, advisers account for 47% of ANZ’s home loan book.

At Westpac, mortgage advisers now account for 51% of the home loan book. That's 8.5% growth, from 46.7% to 51%, during the year. As it’s the total book which indicates adviser flow, the amount advisers originated during the year was well over the 50% mark.

Westpac chief executive Catherine McGrath says the increase in adviser market share was partly driven by CCCFA regulations. Meanwhile, the news isn’t so positive at BNZ, where advisers account for 30.7% of its $54.8 billion home loan book. That’s a 2.3% increase on the previous year. However, the flow, or number of loans advisers were responsible for during the 12 months to September 30, actually fell from 34.6% to 34.3%.

Love from ANZ

ANZ chief executive Antonia Watson said third-party distribution is “a really important channel for us. So we give them lots of love.” “Our customers choose to go to mortgage advisers and we respect that choice. We want to make sure that we still give our customers, and our partners - effectively, the advisers - a good experience.” How much advisers can grow their market share is a moot point. Watson says there are markets around the world where it's much higher than New Zealand. “Do we want to have every mortgage originated by our brokers? Probably not,” she said.

“We've got some really great staff who do a really good job in talking customers through home loans.” Watson said the adviser channel was growing for a number of reasons. “Things have got really complicated for our customers.

“You've got the CCCFA changes; you've got an increasing interest rate environment; you've got Covid shutting down branches.

“So they're looking for someone they can trust, to talk to about something that has become quite complicated.”

Image: Catherine McGrath

ADVISERS CUT LARGE SLICE OF THE CAKE AT TWO OUT OF THREE BIG BANKS

NZHL TAKES MAJORITY STAKE IN LINK FINANCIAL GROUP

NZ Home Loans has taken a majority stake in the Link Financial Group (LFG), which includes MortgageLink and InsuranceLink. for an undisclosed amount.

Mortgage Link and NZHL are of similar sizes each, writing around $3 billion worth of home loans each year. NZHL chairman Richard Westlake says LFG is a Kiwi success story and a growth opportunity for the business. He told LFG advisers, "We can give you assurance LFG will stay in New Zealand hands."

Owned by cashed-up Kiwi Group Holdings, NZHL had looked around the market and settled on the deal partly because of the advice technology LFG had developed - and also because it was a good cultural fit. NZHL chief executive Kip Hanna says the company is “looking forward to utilising the New Zealand technology expertise of LFG – particularly their proprietary advisory software, Advice Link.”

LFG managing director Josh Bronkhorst will remain a shareholder in the business and will continue to run LFG.

"I will be around as long as you will have me and I can keep adding value," says Bronkhorst. “It’s great to have NZHL on board to help us drive the business forward and maximise future growth.” Initially NZHL and LFG will be run quite separately, with NZHL input and oversight at board level. Hanna says although the two businesses have different client propositions, both are committed to helping Kiwis get ahead financially. “The New Zealand adviser market is growing, as more people want personalised service and guidance around their home loans. So despite broader economic headwinds, we are optimistic about the opportunity this acquisition will bring for both businesses.” Much has been made of the fact that LFG would stay New Zealand-owned, while some of the other aggregation groups were Australian-owned.

MORTGAGE ADVISER GROUP SOLD TO AN ESTABLISHED PLAYER

Mortgage Lab founder Rupert Gough has sold the business to Maurice Trapp Group (MTG), which largely specialises in insurance.

Set up in 2017, Mortgage Lab has grown to 25 advisers covering most of the country.

Gough, who is no longer a shareholder, says the business has reached a size where it will benefit from more of a corporate structure. “As a founder, I want to know that the brand that was built will get even stronger in the future. It’s a huge comfort that a high-quality business like MTG is now taking care of Mortgage Lab.” Gough says he has known the team at MTG almost a decade.

“I’m excited to see where Maurice Trapp Group will take the business going forward.”

Gough exits as chief executive and continues his role on board at Financial Advice NZ as an independent mortgage representative. The incoming Mortgage Lab general manager, Jarrod Kirkland, says the two companies are very well aligned, both geographically and ethically. “They perfectly complement each other. Together, both companies benefit from this acquisition.” ✚

Image: Rupert Gough

We’re here to listen.

We’d love to help.

Avanti Finance is a Kiwi business so we understand Kiwi needs. As a non-bank, we offer a comprehensive range of lending solutions, including: long term and bridging first mortgages, caveat, vehicle and personal loans plus business loans.*

TALK TO OUR AWARD WINNING TEAM TODAY, YOU’LL LOVE OUR COMMON SENSE APPROACH.

Paul Rolton

Lower North Island 021 192 9709

Helen Mulligan

Auckland/Northland 021 226 7191

Mark Nolan

South Island 021 941 046

Graham Clarke

Central North Island 021 941 988

0800 33 33 20 I avantifinance.co.nz

*Lending criteria, fees, terms and conditions apply