Sovereign continues to lead non-bank home loans
Monday 4 December, 2006
Sovereign continues to lead non-bank home loans hitting $6B in home lending
Sovereign announced today that it has reached the milestone of $6 billion in home loan lending, strengthening its position as the country's leading non-bank home loan lender and making Sovereign the fifth largest home loan lender in New Zealand.
“In just over four years we have tripled the size of our home loans portfolio from $2 billion to $6 billion dollars,” says Adrienne Smith, Sovereign’s General Manager Home Loans.
“Our average growth rate over that period has been a staggering 28% per annum compared with 15% per annum for the market as a whole.
“Sovereign has benefited from the foresight in identifying the rise in the non-conforming sector some years ago and this has contributed significantly to our growth. We now see the non-conforming sector as increasingly mainstream. More recently we have seen other lenders target this market but it will take some time for them to develop the necessary expertise.”
“Sovereign deals exclusively with mortgage brokers and independent financial advisers. These distribution channels have seen support from many other financial organisations ebb away over the past few years. We are strong advocates of the broker and adviser communities because we believe in the value of independent financial advice. Our success shows that a large number of New Zealanders agree.”
“Brokers and advisers are also much better positioned to offer customers a complete financial package of a home loan and a risk protection plan. We see the growth in home loan lending as a significant contributor to the underinsurance problem we have today. Our philosophy has always been to encourage borrowers to take out appropriate life insurance cover whenever they obtain or extend a home loan.”
Megan Salt, CEO of the New Zealand Mortgage Brokers Association says, “Sovereign has been hugely supportive of the mortgage broker channel and the NZMBA especially in the continuing professional development of our members. The relationship is a close one and one we know will continue.”