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

 


New Zealand Home Loans hits the billion dollar mark

5 December 2012

New Zealand Home Loans hits the billion dollar mark

New Zealand Home Loans has reached a billion dollar milestone. This last year, for the first time, the homegrown mortgage company has lent $1 billion to New Zealand home owners – and counting. The company has a total home loan portfolio of nearly $4 billion.

The milestone was reached after a record week for the business where $31.3 million of loans were settled and a best ever loan month in November with $121.3 million settled. The previous best month was $109.3 milion in December last year.

New Zealand Home Loans CEO Mark Collins believes the result is a testament to its unique approach that prioritises getting clients out of debt, not into it.

“Our model seems to be striking a chord with New Zealanders who are treading carefully in today’s economic conditions and housing market, and making every penny count.”

“People are saying they are coming to New Zealand Home Loans because we don’t just lend money and leave the hard work of paying it off solely to them. They get ongoing advice, support, tools and reviews to manage and reduce their debt, and create wealth.”

Much of the growth this year has come from the Auckland market which as a region has grown over the past year from 27% to 43% of the company’s home loan portfolio with the number of branches doubling over the past two years to the present 18.

Mark Collins says the company’s increasing popularity as a solid franchise opportunity has been a big factor in its growth. “There is presently an unprecedented level of interest in new consultants entering the company’s training and mentoring programme from which they ultimately progress to become business owners. This, in conjunction with the growing awareness of the unique service New Zealand Home Loans offers, bodes well for our on-going growth which we are forecasting to be around 25% in 2013.” said Mark.

This growth was recognised earlier in October with New Zealand Home Loans being awarded a Deloittes Fast 50 award in the mature business category.

New Zealand Home Loans has a steadily growing nationwide network of 60 franchises. Ten new branches have opened in the last year, in:

• Auckland Metro
• Rodney
• West Auckland
• Auckland Urban
• Pakuranga
• Hamilton South
• Hamilton Metro
• Dunedin Metro
• Ashburton
• Timaru

The wholly New-Zealand owned and operated franchise company was set up in Hamilton in 1996 and on July 1st, 2012 New Zealand Home Loans became 100 per cent owned by Kiwi Group Holdings (who also own Kiwibank).

How New Zealand Home Loans works

New Zealand Home Loans operates a channelled mortgage model which 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 home loan balance. 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 income 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 householder is not able to draw down the portion of the mortgage that has been paid off.

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

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news