More Kiwis saying yes to non-banks
Higher inflation, rising interest rates and tighter lending rules are leading to a greater number of advisers and clients choosing non-banks
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NON-BANKS are on the rise in New Zealand as more Kiwis realise they offer finance options that aren’t limited by narrowly defined and often inflexible lending criteria.
While non-banks only make up a small part of the lending market – according to the Reserve Bank of New Zealand their share of home loans was just 1.68% in April 2022 – their growth has been impressive. In the 12 months to April 2022, the value of non-banks’ home loans grew from $3.94bn to $5.66bn – a 43% increase.
Credit Contracts and Consumer Finance Act (CCCFA) amendments and tighter LVR restrictions mean that banks in New Zealand are being a lot tougher when it comes to scrutinising borrowers’ suitability for a loan. This opens the door to non-banks, which can provide more lending options to advisers and their clients while still meeting responsible lending and CCCFA requirements.
At Avanti Finance, we’ve been working with introducers, advisers and brokers to provide flexible options for over 30 years, helping thousands of New Zealanders get into a new home, a new car, start a new business or consolidate their debt. In an industry where box-ticking is the norm, Avanti Finance does things differently. We look at the context and background of the borrower, not just the borrowing, because we know that sometimes 'life happens'. Talk to us today about our broad range of lending products, including long-term first mortgages, caveat loans, bridging loans, car loans, business loans and personal loans. We’d love to help.
Find out more
Bluestone is a fast-growing lender specialising in residential home loans. We have a team of over 270 professionals across Australia, New Zealand and the Philippines. Bluestone started out as an Australian lender headquartered in Sydney in 2000, and first started operating in New Zealand in 2002. Since then, we have helped over 13,000 Kiwis with home loans that fit a wide range of circumstances. We help people with a variety of financial needs, whether they are looking to refinance, or to purchase homes or residential investment properties. Our solutions are popular with not only PAYE borrowers but also self-employed borrowers who require alternative ways to prove their income, as well as residential property investors with complicated income streams.
Find out more
For over 25 years First Mortgage Trust (FMT) has been helping New Zealanders grow their wealth. Today we have over $1.4bn invested, providing consistent returns for our investors, and we are the country’s largest first mortgage non-bank lender. Since 1996, FMT has helped clients with a diverse range of property finance in the residential, commercial, industrial and retail property sectors in New Zealand. Our experienced lending team are solution focused, providing prompt decision-making, and have local knowledge to help clients move ahead with confidence. We now have offices in Tauranga, Auckland, Wellington and Christchurch with 55 staff members, and we’re continuing to grow to meet the significant market demand.
Find out more
“At the core of our value proposition is our Credit Cascading Model, which provides prime, near prime or specialist solutions to support a high probability of conversion ... It’s like having a lender sitting beside you, assisting you in finding the right solution for your needs”
Campbell Smith,
Pepper Money
In Partnership with
“At FMT, we’ve seen our lending go from strength to strength. We’ve seen growth from those who may have traditionally gone with a mainstream bank but are looking for more appetite, flexibility and agility”
Sam Burgess,
First Mortgage Trust
Industry experts
Campbell Smith
Pepper Money
Stephen Massey
Avanti Finance
Luke Jackson
Resimac New Zealand
Sam Burgess
First Mortgage Trust
Industry experts
Sam Burgess is responsible for overseeing the lending side of the First Mortgage Trust business. He has over 16 years of experience in the banking industry and has held roles across the property finance, private banking and commercial and business banking sectors.
First Mortgage Trust
Sam Burgess
Luke Jackson leads a growing operation that continues to devise new solutions to suit customers’ needs. He joined Resimac as head of New Zealand in 2019. Jackson has been part of the banking and financial services industry since 1997 across retail, business, corporate and commercial segments, including working for major trading banks as well as alternatives to banks. He played a lead role in building New Zealand’s peer-to-peer fintech market when he was CEO of the nation’s largest peer-to-peer mortgage platform.
Resimac New Zealand
Luke Jackson
Steve Massey has been in the finance industry for over 25 years and has experience in lending, product development and sales management, with a focus on future strategy and business development in the non-bank property sector. He is an expert in the consumer finance market, having spent many years creating solutions for a wide range of borrowers.
Most recently, Massey has become an integral part of the executive team at Avanti Finance, a New Zealand non-bank lender, developing a property product suite that includes everything from short-term bridging solutions to long-term home loans. His experience includes five years at Fisher & Paykel in consumer finance roles, then 18 years at Avanti Finance in motor, personal, and mortgage and small business lending. In his time, Avanti Finance has become one the largest non-bank mortgage lenders. Massey has participated in a number of industry panels and events with a focus on education and how non-banks can support a wide range of consumer needs.
Avanti Finance
Stephen Massey
Campbell Smith is the country head for Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, he has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. Campbell recently joined Pepper Money from LeasePlan as director and country manager, having also worked at organisations such as Turners Automotive and Westpac.
Pepper Money
Campbell Smith
Campbell Smith
Pepper Money
Stephen Massey
Avanti Finance
Luke Jackson
Resimac New Zealand
Sam Burgess
First Mortgage Trust
Industry experts
Sam Burgess is responsible for overseeing the lending side of the First Mortgage Trust business. He has over 16 years of experience in the banking industry and has held roles across the property finance, private banking and commercial and business banking sectors.
First Mortgage Trust
Sam Burgess
Luke Jackson leads a growing operation that continues to devise new solutions to suit customers’ needs. He joined Resimac as head of New Zealand in 2019. Jackson has been part of the banking and financial services industry since 1997 across retail, business, corporate and commercial segments, including working for major trading banks as well as alternatives to banks. He played a lead role in building New Zealand’s peer-to-peer fintech market when he was CEO of the nation’s largest peer-to-peer mortgage platform.
Resimac New Zealand
Luke Jackson
Steve Massey has been in the finance industry for over 25 years and has experience in lending, product development and sales management, with a focus on future strategy and business development in the non-bank property sector. He is an expert in the consumer finance market, having spent many years creating solutions for a wide range of borrowers.
Most recently, Massey has become an integral part of the executive team at Avanti Finance, a New Zealand non-bank lender, developing a property product suite that includes everything from short-term bridging solutions to long-term home loans. His experience includes five years at Fisher & Paykel in consumer finance roles, then 18 years at Avanti Finance in motor, personal, and mortgage and small business lending. In his time, Avanti Finance has become one the largest non-bank mortgage lenders. Massey has participated in a number of industry panels and events with a focus on education and how non-banks can support a wide range of consumer needs.
Avanti Finance
Stephen Massey
Campbell Smith is the country head for Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, he has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. Campbell recently joined Pepper Money from LeasePlan as director and country manager, having also worked at organisations such as Turners Automotive and Westpac.
Pepper Money
Campbell Smith
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Share
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Sam Burgess
First Mortgage Trust
Luke Jackson
Resimac New Zealand
Stephen Massey
Avanti Finance
Campbell Smith
Pepper Money
Campbell Smith is the country head for Pepper Money New Zealand. With over 20 years’ experience in the banking and financial services industry, he has substantial executive leadership, financial and operational experience, having worked in various commercial functions across mortgages and asset finance. Campbell recently joined Pepper Money from LeasePlan as director and country manager, having also worked at organisations such as Turners Automotive and Westpac.
Pepper Money
Campbell Smith
Steve Massey has been in the finance industry for over 25 years and has experience in lending, product development and sales management, with a focus on future strategy and business development in the non-bank property sector. He is an expert in the consumer finance market, having spent many years creating solutions for a wide range of borrowers.
Most recently, Massey has become an integral part of the executive team at Avanti Finance, a New Zealand non-bank lender, developing a property product suite that includes everything from short-term bridging solutions to long-term home loans. His experience includes five years at Fisher & Paykel in consumer finance roles, then 18 years at Avanti Finance in motor, personal, and mortgage and small business lending. In his time, Avanti Finance has become one the largest non-bank mortgage lenders. Massey has participated in a number of industry panels and events with a focus on education and how non-banks can support a wide range of consumer needs.
Avanti Finance
Stephen Massey
Luke Jackson leads a growing operation that continues to devise new solutions to suit customers’ needs. He joined Resimac as head of New Zealand in 2019. Jackson has been part of the banking and financial services industry since 1997 across retail, business, corporate and commercial segments, including working for major trading banks as well as alternatives to banks. He played a lead role in building New Zealand’s peer-to-peer fintech market when he was CEO of the nation’s largest peer-to-peer mortgage platform.
Resimac New Zealand
Luke Jackson
Sam Burgess is responsible for overseeing the lending side of the First Mortgage Trust business. He has over 16 years of experience in the banking industry and has held roles across the property finance, private banking and commercial and business banking sectors.
First Mortgage Trust
Sam Burgess
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Peter Wood
Bluestone
Peter Wood first started at Bluestone in 2002 as general manager New Zealand, before moving to Australia to establish Bluestone’s commercial mortgage business between 2006 and 2009. After a brief stint working for financial services institutions, Wood rejoined Bluestone in 2013 as general manager Asia Pacific. He then held the role of COO APAC, before becoming managing director New Zealand in 2018. In September 2021, Wood was appointed managing director – strategic partnerships APAC. He is focused on cultivating most of Bluestone’s white label relationships, while developing strategies to initiate new partnerships. He is also accountable for the New Zealand business’s overall strategy and operational deliverables. With over 25 years in the industry, including in senior management positions across the financial services sector, Wood brings a wealth of experience to the Bluestone group.
Bluestone
Peter Wood
Peter Wood
Bluestone
Peter Wood first started at Bluestone in 2002 as general manager New Zealand, before moving to Australia to establish Bluestone’s commercial mortgage business between 2006 and 2009. After a brief stint working for financial services institutions, Wood rejoined Bluestone in 2013 as general manager Asia Pacific. He then held the role of COO APAC, before becoming managing director New Zealand in 2018. In September 2021, Wood was appointed managing director – strategic partnerships APAC. He is focused on cultivating most of Bluestone’s white label relationships, while developing strategies to initiate new partnerships. He is also accountable for the New Zealand business’s overall strategy and operational deliverables. With over 25 years in the industry, including in senior management positions across the financial services sector, Wood brings a wealth of experience to the Bluestone group.
Bluestone
Peter Wood
Peter Wood
Bluestone
Peter Wood first started at Bluestone in 2002 as general manager New Zealand, before moving to Australia to establish Bluestone’s commercial mortgage business between 2006 and 2009. After a brief stint working for financial services institutions, Wood rejoined Bluestone in 2013 as general manager Asia Pacific. He then held the role of COO APAC, before becoming managing director New Zealand in 2018. In September 2021, Wood was appointed managing director – strategic partnerships APAC. He is focused on cultivating most of Bluestone’s white label relationships, while developing strategies to initiate new partnerships. He is also accountable for the New Zealand business’s overall strategy and operational deliverables. With over 25 years in the industry, including in senior management positions across the financial services sector, Wood brings a wealth of experience to the Bluestone group.
Bluestone
Peter Wood
Pepper Money is one of Australia and New Zealand’s leading non-bank lenders. Established in 2000, the company first launched as a specialist residential home loan lender in Australia with a focus on providing innovative home loan solutions to customers who were being underserved by traditional lenders. Today, Pepper Money has a broad product offering of residential home loans, personal loans, asset finance, novated leases and commercial real estate loans across Australia and New Zealand.
Find out more
Resimac is an innovative provider of home loan solutions with the flexibility to meet the needs of the New Zealand homebuyer. Our parent company, Resimac Group Ltd, has been in operation since 1985 and in New Zealand since 2012. We are a pioneer of alternative lending with a focus on delivering competitive products and quality customer service. At Resimac, we are committed to being a responsible lender directly to customers, and we recognise the importance of ensuring we conduct business in an ethical and responsible manner. We acknowledge our obligations to our customers under the Credit Contracts and Consumer Finance Act 2003 (as amended from time to time), the responsible lending principles and the Responsible Lending Code.
Find out more
“With a focus on service and with the support of advisers, we aim to provide logical, common-sense loans that meet the needs of customers who may not fit ‘bank boxes’”
Stephen Massey,
Avanti Finance
“We’re able to help self-employed customers; customers who need to consolidate debt, including IRD debt; as well as those with a history of defaults and judgments and account conduct issues”
Peter Wood,
Bluestone
“Resimac has the agility and ability to respond to market conditions and emerging customer needs quickly, and we can offer solutions that enable customers to work within constraints and still achieve their goals”
Luke Jackson,
Resimac New Zealand
For over 25 years First Mortgage Trust (FMT) has been helping New Zealanders grow their wealth. Today we have over $1.4bn invested, providing consistent returns for our investors, and we are the country’s largest first mortgage non-bank lender. Since 1996, FMT has helped clients with a diverse range of property finance in the residential, commercial, industrial and retail property sectors in New Zealand. Our experienced lending team are solution focused, providing prompt decision-making, and have local knowledge to help clients move ahead with confidence. We now have offices in Tauranga, Auckland, Wellington and Christchurch with 55 staff members, and we’re continuing to grow to meet the significant market demand.
Find out more
Bluestone is a fast-growing lender specialising in residential home loans. We have a team of over 270 professionals across Australia, New Zealand and the Philippines. Bluestone started out as an Australian lender headquartered in Sydney in 2000, and first started operating in New Zealand in 2002. Since then, we have helped over 13,000 Kiwis with home loans that fit a wide range of circumstances. We help people with a variety of financial needs, whether they are looking to refinance, or to purchase homes or residential investment properties. Our solutions are popular with not only PAYE borrowers but also self-employed borrowers who require alternative ways to prove their income, as well as residential property investors with complicated income streams.
Find out more
At Avanti Finance, we’ve been working with introducers, advisers and brokers to provide flexible options for over 30 years, helping thousands of New Zealanders get into a new home, a new car, start a new business or consolidate their debt. In an industry where box-ticking is the norm, Avanti Finance does things differently. We look at the context and background of the borrower, not just the borrowing, because we know that sometimes 'life happens'. Talk to us today about our broad range of lending products, including long-term first mortgages, caveat loans, bridging loans, car loans, business loans and personal loans. We’d love to help.
Find out more
“At FMT, we’ve seen our lending go from strength to strength. We’ve seen growth from those who may have traditionally gone with a mainstream bank but are looking for more appetite, flexibility and agility”
Sam Burgess,
First Mortgage Trust
“At the core of our value proposition is our Credit Cascading Model, which provides prime, near prime or specialist solutions to support a high probability of conversion ... It’s like having a lender sitting beside you, assisting you in finding the right solution for your needs”
Campbell Smith,
Pepper Money
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Massey says in many overseas markets non-banks play a more significant role, and he’s confident this will become the case in New Zealand as banks wrestle with “legacy systems and processes, capital demands, and the challenge of meeting more and more diverse needs”.
Resimac’s Jackson says a number of alternative lenders set up shop in New Zealand a few years ago because they saw a gap in the market.
“But it’s now that this segment of lender is really showcasing the true value we offer,” he says. “We expect this market share to increase over the next few periods as a result.”
As the market undergoes further regulation and customer needs become more diverse, the approach many banks are taking is “letting a lot of potentially creditworthy applicants down”, Jackson says.
“Being smaller and dynamic, alternative lenders like Resimac are able to pivot to satisfy the credit needs of these new-era customers.”
As reported in the media, in late 2021 the CCCFA reforms resulted in many banks making intrusive enquiries into the expenses of their applicants, says Jackson.
He says Resimac was able to look closely at regulation, policy and the market and develop an alternative method of assessing loans using benchmarking, which complied with legislation but also catered to borrowers’ unique needs.
Burgess at FMT says non-bank lenders have a smaller share of the market in New Zealand than those in other countries, such as Australia where non-banks have about 30% of the lending market and the US where it’s as high as 50%.
New Zealand’s comparative undersupply hasn’t gone unnoticed, he adds, with a number of offshore companies looking to establish a presence here.
“We expect the non-bank lending market will continue to grow in the coming years,” Burgess says. “At FMT, we’ve seen our lending go from strength to strength. We've seen growth from those who may have traditionally gone with a mainstream bank but are looking for more appetite, flexibility and agility.”
Wood says Bluestone has had a footprint in New Zealand for 20 years, so it was a logical extension to start originating new business again in 2018 based on opportunities in the market.
“The idea was to build a long-term sustainable non-bank sector focusing on the non-prime sector, providing greater diversity to advisers and catering for a wider set of borrowers,” he says.
Pepper Money and other non-bank lenders have enjoyed increasing traction in the market, in line with the growing awareness and consideration of non-bank finance solutions, Smith says.
“We’ve seen an uptick in interest from financial advisers since the middle of last year after we launched a new, competitively priced product to shake up the market, and we expect this momentum to continue as mainstream funders’ appetite continues to wane, while the uncertainty brought about by the pandemic dissipates.”
He says there’s a significant opportunity for increased market share in the non-bank sector, and it comes down to education.
“Financial advisers play a big role in role in bringing awareness of alternative solutions to Kiwi households, and they do so by consistently acting in the best interest of their clients and showing their clients more options,” says Smith.
“We will continue to evolve and listen to the market and adapt to address the pain points that an adviser faces in their interactions.”
Growth trends
“Bluestone experienced significant growth during the pandemic,” says Wood. “This was driven by closed borders, low unemployment, low interest rates and a hot property market.”
Growth was further compounded by the rollout of the CCCFA in 2021, as the banks’ requirements to assess a loan application became significantly cumbersome.
“When you compile these two factors with the RBNZ speed limits, we saw a swing of volumes to non-banks in the March quarter 2022 increase to a record 10% flow, which has been consistently growing over the past 12 months,” says Wood.
Burgess says the non-bank lending market has been growing in the double digits for multiple periods now, while banks have operated at reasonably conservative growth settings.
“Subdued bank appetite, combined with an active property market, has assisted with the growth that we have experienced,” he says. “FMT is a definite means to an end for someone to complete a property-related project or investment. Interest rates are still a factor, but we’re increasingly seeing borrowers who are after flexibility.”
Following the events of the last two years, Pepper Money’s real-life human approach to lending is needed more than ever as customers look for workable solutions, says Smith.
“Some of the borrowers we help include customers who are ready to achieve their goals but for some reason don’t meet traditional lending criteria,” he says.
This includes customers who have different types of income sources or employment or have experienced a life event such as a relationship separation or job loss that has impacted their credit history.
Massey says Avanti has continued to grow well over the last 12 months.
“Our near prime mortgage product and unsecured personal loan options are taking us to new and more diverse customers who are loving the options being offered by advisers and ourselves,” he says.
Non-bank lending is meeting the market and now has home loan rates rivalling the main banks, says Massey.
“Avanti and our non-bank peers are well positioned to support growing customers’ needs, and the growth will only continue.”
Jackson says there have been waves of growth over the last 12 months, as seen in Resimac’s increasing market share of new customers, both residential property investors and owner-occupiers.
He says there’s been an increase in owner-occupier customers – strong PAYE applicants with existing equity who fall outside the banks’ lending policies.
But the owner-occupier market has recently cooled because of increasing interest rates and the higher cost of living, and the residential property investor market is re-emerging.
“Resimac is in an ideal position to help them thanks to our unique specialist investment product that takes a commercial view of property investment and serviceability as opposed to a retail view,” says Jackson.
Broader options with non-bank loan products
FMT is an established New Zealand company with a range of experienced BDMs in various geographical locations, says Burgess.
“We have a great understanding of the market in which we operate. Our network and pragmatic approach to credit assessment make FMT more accessible and agile.
“The feedback from our clients is that they love our personal customised approach. We pride ourselves on our clients being able to pick up the phone and talk to our BDMs and get an indication of if we can help them with funding in a timely manner. We partner with advisers – for us it’s partnership, not just a transaction.”
Smith says an alternative home loan might be an option for an adviser’s client for several reasons – they may be recently self-employed, have non-traditional income, or be behind in bill repayments.
“However, these situations are just a part of their story – real life happening to everyday Kiwis who are capable of moving forward.”
He says this is where non-bank lenders like Pepper Money come in, providing borrowers with a broader range of loan options and working closely with financial advisers to help them achieve their goals.
“At the core of our value proposition is our Credit Cascading Model, which provides three Pepper Money solutions – prime, near prime or specialist – which serve to support a high probability of conversion, removing the majority of the showstoppers experienced in a standard submission,” says Smith. “It’s like having a lender sitting right beside you, assisting you in finding the right solution for your needs.”
Jackson says Resimac offers a great spread of products, from prime and prime alt-doc to products for the credit-impaired and products for residential property investment.
“These suit a variety of needs because we recognise that people are unique and require different solutions at different stages of their life.”
He says some advisers have told Resimac that they have found themselves extremely challenged by the unintended consequences of the mainstream lenders’ policies.
“They decided to try the alternative approach and have come to appreciate Resimac’s value proposition and our pragmatic approach.”
Massey says Avanti has grown over the last 30 years by filling niches and providing alternatives.
“With a focus on service and with the support of advisers, we aim to provide logical, common-sense loans that meet the needs of customers who may not fit ‘bank boxes’.
“Our team are also able to work with advisers to get to a solution and are prepared to listen, while understanding that things happen and no two customers are the same – flexibility of product, thinking and solutions.”
Bluestone’s products can help advisers assist a diverse range of borrowers, says Wood, including those customers who would traditionally not fit the criteria of a mainstream lender.
“We’re able to help self-employed customers; customers who need to consolidate debt, including IRD debt; as well as those with a history of defaults and judgments and account conduct issues,” he says.
“We also don't do any credit-scoring or use full comprehensive credit reporting, which means we can cater for a wider group of borrowers. We support this with an award-winning sales team of seven BDMs covering New Zealand.”
Inflation, interest rates, CCCFA regulation
Smith says Pepper Money was prepared for the regulatory changes, and its credit assessment approach ensures that while its lending solution will support the client’s objectives, the client can also make repayments without suffering hardship.
Despite rising inflation and a more challenging credit environment, he says Pepper Money will continue helping advisers support more Kiwi families while delivering sustainable growth.
Burgess says a difficult macroeconomic environment, increasing regulation and the subdued appetite of the banks only emphasise the need for a diverse and functional non-bank market.
“Quality non-bank lenders such as FMT provide value by providing options to advisers and their borrowers,” he says.
Jackson says rising inflation, higher interest rates and recent legislative changes are affecting advisers and their customers, but this is the type of environment in which Resimac excels.
“Resimac has the agility and ability to respond to market conditions and emerging customer needs quickly, and we can offer solutions that enable customers to work within constraints and still achieve their goals.”
The combination of these recent trends has highlighted the need for non-bank lenders, Wood says.
“Bluestone's current assessment criteria already covers CCCFA requirements under the new Act, so for us it was business as usual. With our increased volumes, advisers have become more familiar with our process, and we’ve seen an increase in our conversions from applications to settlements as we’re able to provide more solutions to borrowers.”
Massey says what a changing and challenging market creates is a need for lenders to be flexible and nimble – something non-banks are good at.
Adviser education
Resimac is helping advisers understand key customer segments – such as owner-occupiers, property investors, the self-employed, the credit-impaired, and Australians looking to buy in New Zealand – through its ‘Made for Resimac’ approach, matching customers to the most suitable product.
“We have also invested heavily into our BDMs. Our BDMs offer a breadth of experience and skills that make them an absolute delight to work with,” says Jackson.
Resimac has also invested in radio and newspaper ads, digital ads and social media marketing to increase Resimac’s brand presence.
Wood says Bluestone deals exclusively with the third party channel.
“Leads from our website get filtered out to adviser networks as we feel they are best placed to provide borrowers with a range of lender options, not just what Bluestone can provide.”
Bluestone is very passionate about educating the network, and regularly runs workshops, either face-to-face or on webinars, says Wood.
Massey says Avanti has a very experienced team of BDMs who travel the country providing support and training and assisting advisers in helping more customers.
“For advisers in a dynamic market, it can be challenging to know every product and option, so the Avanti team has a strong knowledge of alternatives across the whole sector.”
Avanti is also active in many circles and contributes to blogs and other property-related websites, Massey says.
FMT has been partnering with advisers for over 25 years, Burgess says.
“We try to assist advisers by providing proactive updates at the various industry events and generally keeping them up to date with appetite settings.”
FMT also partners with aggregators and industry players through sponsorship arrangements; attends nationwide conferences; plays an active part in specialist lender panels; and hosts PD days. It holds webinars for advisers as well.
At Pepper Money, Smith says making the loan application process easier for advisers sets the non-bank apart from its peers. This includes its one-application model, in which applications are assessed under the prime product first, and then under near prime and specialist options if they don’t fit the prime criteria.
“We’re dedicated to continuously working to streamline our solutions via easy-to-understand products, with supporting technology that delivers a consistent and reliable service,” he says.
CONSUMER
AGRICULTURE
PROPERTY
OTHER BUSINESS
HOUSING
2010
2012
2014
2016
2018
2020
2022
0
5
10
15
20
25
$bn
Value of non-bank lending by sector,
Mar 2010–Mar 2022
Source: Reserve Bank of New Zealand
CONSUMER
AGRICULTURE
PROPERTY
OTHER BUSINESS
HOUSING
2010
2012
2014
2016
2018
2020
2022
0
5
10
15
20
25
$bn
Value of non-bank lending by sector,
Mar 2010–Mar 2022
Source: Reserve Bank of New Zealand
Source: Bank of New Zealand, April 2022
Banks - $277.47bn (98.8%)
Non-banks - $3.29bn (1.17%)
April 2020
Total loans - $280.77bn
Banks - $307.87bn (98.7%)
Non-banks - $3.94bn (1.26%)
April 2021
Total loans - $311.81bn
Banks - $331.40bn (98.3%)
Non-banks - $5.66bn (1.68%)
April 2022
Total loans - $337.06bn
Non-banks vs banks: VALUE / market share
of housing loans
Source: Reserve Bank of New Zealand, April 2022
Banks - $331.40bn (98.3%)
Non-banks - $5.66bn (1.68%)
April 2022
Total loans - $337.06bn
Non-banks vs banks: VALUE / market share of housing loans
Banks - $277.47bn (98.8%)
Non-banks - $3.29bn (1.17%)
April 2020
Total loans - $280.77bn
Banks - $307.87bn (98.7%)
Non-banks - $3.94bn (1.26%)
April 2021
Total loans - $311.81bn
NZ Adviser caught up with Resimac New Zealand general manager Luke Jackson, Avanti Finance head of distribution Stephen Massey, First Mortgage Trust (FMT) head of lending Sam Burgess, Bluestone managing director New Zealand Peter Wood and Pepper Money country head Campbell Smith to find out more.
The non-bank alternative
Massey at Avanti Finance says the fact that non-banks represent only a small portion of total housing lending highlights the opportunities ahead for them.
“It’s important to note that in the 12 months to March, non-bank housing lending grew by over 35% versus the banks’ growth rate of 7% for the same period,” he says. “All of the non-banks are focused on providing an alternative option to a broad and growing number of customers.”