Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Purchase of New Zealand Home Loans Complete

9th July 2012

Purchase of New Zealand Home Loans Complete

New Zealand Home Loans Ltd, based in Hamilton, is now totally owned by Kiwi Group Holdings Limited, the parent company of Kiwibank. Kiwi Group Holdings bought a 51 per cent shareholding in New Zealand Home Loans in 2006 and has progressively increased its shareholding since then. It has now completed the purchase of the remaining 24 per cent of the shares.

New Zealand Home Loans has a nationwide network of 59 franchises and 190 consultants and accounts for 30 per cent of Kiwibank’s mortgage business. This year the company will write more than $950 million and is expected to make the billion mark in the next financial year.

Neil Richardson, chair of NZHL, said the company will continue to operate as a separate entity and there will be no change to the franchise’s successful business model.

“Kiwibank and New Zealand Home Loans will operate as separate but complementary businesses. Both businesses were founded with the vision of putting New Zealanders into a stronger financial position. It was important for us to remain in 100 per cent New Zealand ownership and keep millions of dollars of mortgage funding in the New Zealand economy, so we’re delighted with this move.

“The buyout further augments the security and stability of New Zealand Home Loans financial position, providing a solid base for its goals to double its turnover by 2017,” Mr Richardson said.

New Zealand Home Loans will continue to operate under its existing management structure from its Hamilton headquarters, with Mr Richardson remaining as chair and Mark Collins as CEO.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

New Zealand Home Loans was set up in 1996 by John Erkkila and Murray Ferguson.

How New Zealand Home Loans works:

New Zealand Home Loans helps its clients simplify their finances by operating them from one bank account, which consolidates and reduces interest costs and makes money management easier to track. All income and expenditure – including mortgage repayments – is channelled through this transactional account. The mortgage is arranged on a reducing principal and interest basis. There are no day-to-day transaction fees, and clients receive an EFTPOS/ATM card and have access to online banking and telephone banking.

Interest payable is calculated daily on the net total household debt. This solves the problem of savings accounts earning a lower interest rate for households than that they’re paying to service debt, and the problem of a household’s salaries going straight into a transactional account that earns them no interest. Under the New Zealand Home Loan structure, savings and salaries have the effect of earning the household the same amount of interest as that they’re paying for the mortgage.

Unlike a traditional revolving credit mortgage, the New Zealand Home Loans facility has a reducing limit which the householder is able to redraw up to at any time.

New Zealand Home Loan clients receive one-on-one advice and support from a consultant during the process of setting up the mortgage, followed by on-going support and reviews throughout their relationship, to ensure they stay on track to meet their day-to-day commitments and their wider, longer term financial goals.

A simple-to-use and easy to understand software package, called debtnav, helps clients manage their day-to-day finances and track their progress towards their goals.

New Zealand Home Loans can arrange comprehensive insurance to give homeowners a safety net to protect their finances and their families, including income-protection, life, and home and contents.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.