An essential resource in the broker toolkit
Labels can be deceiving. Take ‘non-bank’, for instance – a term that might imply a secondary option to traditional banking. In reality, however, non-bank lenders often go beyond what traditional banks can offer, providing flexibility and personalised solutions that address unique needs that banks may not meet.
As the global financial landscape continues to change, private credit is quickly becoming an essential tool to meet growing demand, and New Zealand’s lending landscape is no exception. A recent Commerce Commission report further highlights the need for greater competition and innovation in New Zealand’s lending market, creating significant opportunities for non-bank lenders like First Mortgage Trust (FMT) to step in where traditional banks are constrained by regulatory pressures.
A new era for mortgage advisers
The shifts in private credit markets are creating opportunities for mortgage advisers to expand how they can serve their clients. Advisers who understand the full spectrum of lending options are likely to become increasingly valuable to their clients.
The future of private credit While some non-bank lenders have recently exited the New Zealand market, mainly in the Credit Contracts and Consumer Finance Act lending space, others have strengthened their positions. Overall, the New Zealand non-bank sector continues to grow, aligning with trends seen in international markets.
Private credit is becoming an increasingly important alternative to traditional funding sources for borrowers, offering more flexible terms, quicker access to capital and the ability to cater to customers who may not meet restrictive bank lending criteria. Funders like FMT are positioned to play an ever-more important role in the market.
Bendall says, “As the non-bank lending sector is expected to grow in New Zealand, FMT’s role will expand alongside it.
“With nearly 30 years of experience, a skilled team and the scale to back us, we’re committed to maintaining the trust we’ve built with both borrowers
and investors. Our size, expertise and adaptability position us perfectly to seize the opportunities ahead, and we are actively looking to take market share from the main banks.”
Bridging the gap Smith views non-banks like FMT as collaborators with banks. “We often assist banks in completing transactions that may not fit their criteria but still make sense from a property finance perspective, and we’re also seeing more people choose us over the main banks,” he says.
Bendall adds, “At FMT, we focus on a personal approach and tailored solutions. We assess the entire transaction, considering not just loan servicing but also security and experience, to offer more flexibility.”
This flexibility has become more valuable as traditional banks face mounting regulatory pressures, creating opportunities for nimble alternatives like FMT to step in with innovative solutions.
Spotlight
“By staying informed about the options available in the private credit sector, mortgage advisers can offer more value to their clients, especially those who don’t fit into the rigid criteria set by banks,” says Paul Bendall, chief executive of FMT.
More loans are coming through the third party channel than ever before, mirroring trends that are now well established across the Tasman. While industry data is not tracked in New Zealand, anecdotally, the percentage of mortgage deals brokered by advisers in this country is now well over 50% of the total.
Bruce Smith, strategic partnership manager at FMT, explains that advisers are crucial to the non-bank's success: “At FMT, mortgage advisers are essential to our business, with around 70% of our loans sourced through this channel,” he says. “We highly value our partnership with advisers and deeply appreciate their contribution to our success. More clients are relying on advisers for expertise, and it’s important that advisers include funders like FMT to provide a full range of options.”
Mortgage advisers who take advantage of both traditional and private lending options are better positioned to meet the needs of their clients in a market that is becoming more varied and multidirectional.
First Mortgage Trust (FMT) is an investment fund manager specialising in investments and property finance. For nearly 30 years, FMT has been helping New Zealanders protect and grow their wealth by providing consistent investment returns. Today, the company has over $1.7 billion in funds under management and more than 6,600 investors nationwide. FMT also provides clients with tailored property finance through first mortgages across the residential, commercial, industrial and retail property sectors in New Zealand. FMT has offices in Auckland, Tauranga, Wellington and Christchurch, with over 70 staff members, and is continuing to grow to meet market demand.
Company Profile
70+
Employees in
New Zealand
10
BDM team members
$1.7bn
Funds under management
$1.4bn
Loan book
Bio
Spotlight
Milestones
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Company Profile
“By staying informed about the options available in the private credit sector, mortgage advisers can offer more value to their clients, especially those who don’t fit into the rigid criteria set by banks”
Paul Bendall,
First Mortgage Trust
“Working with private credit providers like FMT offers mortgage advisers more than just funding access – it brings specialised expertise in property finance, including investment and development”
Phil Bennett,
First Mortgage Trust
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Published 18 Nov 2024
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Phil Bennett
Sue Griffiths
Paul Bendall
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As New Zealand’s lending landscape changes, private credit is emerging as a key complement to traditional banking, offering flexible financing solutions for borrowers, investors and advisers alike
IN PARTNERSHIP WITH
Sue Griffiths
Operations manager
40+
Years of experience in banking and finance sector
Phil Bennett
Head of lending
43+
Years of experience in banking and finance sector
Paul Bendall
Chief executive
20+
Years of experience in banking and finance sector
Executive leaders
“Our experienced team collaborates closely with advisers, handling everything from basic investment loans to complex developments”
Sue Griffiths,
First Mortgage Trust
Retaining the personal touch in lending Phil Bennett, a highly experienced professional in property finance lending, recently joined FMT as head of lending. With a background in traditional banking, he explains the firm’s distinct approach: “Working with private credit providers like FMT offers mortgage advisers more than just funding access – it brings specialised expertise in property finance, including investment and development,” he says. “This partnership equips advisers with innovative financing options and market insights to tailor solutions for their clients’ needs.”
This approach translates to a more comprehensive evaluation process, in which human judgement and local expertise play crucial roles.
What sets FMT apart is its deep understanding of the New Zealand market, built over years of direct engagement with local communities and businesses; and its team of 10 BDMs located in the major cities across the country.
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Bruce Smith
Bruce Smith Strategic
partnership manager
35+
Years of experience in banking and finance sector
“We often assist banks in completing transactions that may not fit their criteria but still make sense from a property finance perspective, and we’re also seeing more people choose us over the main banks”
Bruce Smith,
First Mortgage Trust
Its local knowledge allows for more nuanced decision-making, which is particularly valuable in a country where regional differences can significantly impact property values and development opportunities.
Sue Griffiths, operations manager at FMT, highlights its hands-on approach. “FMT holds a unique position in the non-bank space, working directly with developers, builders and mortgage advisers,” she says. “Our experienced team collaborates closely with advisers, handling everything from basic investment loans to complex developments.”
Building trust through a proven track record With nearly three decades of experience in New Zealand, FMT is uniquely positioned to understand and respond to local market needs, maintaining the stability that comes with long-term expertise. For investors seeking consistent and steady returns in an uncertain market environment, FMT offers investment funds and has recently launched a wholesale fund.
“At FMT, our investors’ funds are secured by over 1,600 New Zealand residential and commercial properties, with an average loan-to-value ratio of 46%. Our fund’s consistent performance builds trust and attracts long-term investors,” explains Griffiths.
Another key differentiator for FMT is its trust structure and the support of an experienced board. Unlike some lenders, FMT is not reliant on third-party funders; this allows it to retain full control over pricing and terms, providing greater flexibility and responsiveness, which can significantly benefit borrowers. As FMT continues to grow, the company plans to diversify its funding partners, building multiple funding channels to ensure it’s not reliant on any single source.
FMT’s focus on secured lending, combined with its comprehensive knowledge of the New Zealand property market, appeals to investors seeking alternatives to traditional fixed-income investments and those looking for peace of mind in their investments. This is particularly relevant in a low-interest-rate environment, where investors are increasingly seeking options that offer diversification and reasonable returns.
Balancing technology and human connection FMT maintains its commitment to personal relationships, recognising that technology should enhance rather than replace human interaction.
“With the reduction in bank branches and customer service, borrowers are seeking a relationship manager who can support their financial goals and offer flexibility,” says Griffiths. “While we’re heavily investing in technology to improve service and innovation, our priority remains the personal touch, ensuring clients always have someone to deal with directly.”
Smith adds, “We know advisers need quick decisions. If we know five key details about a transaction, we can quickly determine whether we can proceed. If not, we can suggest alternative options with other funders as we know and understand their offerings, or provide solutions that may allow our participation as long as key milestones are met.”
FMT’s investment in technology focuses on enhancing, rather than replacing, personal service. This allows staff to spend more time gaining an understanding of clients’ needs and developing tailored solutions. This approach has proven particularly valuable in complex lending situations where nuanced understanding and flexibility are essential.
“Private credit is no longer just an alternative – it’s a crucial part of the lending landscape that meets today’s demands for flexibility, speed and tailored solutions,” says Bendall. “We will continue to see its growth accelerate over the coming years as more borrowers, advisers and investors recognise its value.”
To find out how FMT can support you or your clients, connect with the BDM team.
2024
2021
2020
1996
1996
First Mortgage Trust founded; becomes an investment manager specialising in property lending finance
First Mortgage Trust funds under management hit $1 billion
2020
First Mortgage Trust loan book climbs to $1 billion
2021
First Mortgage Trust opens Wellington office, increasing its focus in the region
2024
Milestones
(in 4 key locations)
(with over 620 loans)
1996
2020
2021
2024
1996
First Mortgage Trust founded; becomes an investment manager specialising in property lending finance
First Mortgage Trust funds under management hit $1 billion
2020
First Mortgage Trust loan book climbs to $1 billion
2021
First Mortgage Trust opens Wellington office, increasing its focus in the region
2024
Milestones
Sue Griffiths
Operations manager
40+
Years of experience in banking and finance sector
Phil Bennett
Head of lending
43+
Years of experience in banking and finance sector
Paul Bendall
Chief executive
20+
Years of experience in banking and finance sector
Executive leaders
Sue Griffiths
Sue Griffiths
The future of private credit While some non-bank lenders have recently exited the New Zealand market, mainly in the Credit Contracts and Consumer Finance Act lending space, others have strengthened their positions. Overall, the New Zealand non-bank sector continues to grow, aligning with trends seen in international markets.
Private credit is becoming an increasingly important alternative to traditional funding sources for borrowers, offering more flexible terms, quicker access to capital and the ability to cater to customers who may not meet restrictive bank lending criteria. Funders like FMT are positioned to play an ever-more important role in the market.
Bendall says, “As the non-bank lending sector is expected to grow in New Zealand, FMT’s role will expand alongside it.
“With nearly 30 years of experience, a skilled team and the scale to back us, we’re committed to maintaining the trust we’ve built with both borrowers and investors. Our size, expertise and adaptability position us perfectly to seize the opportunities ahead, and we are actively looking to take market share from the main banks.”