Kiwibank takes all of advisory firm

Kiwibank has bought the remaining 24% of New Zealand Home Loans it doesn't already own.

Monday, July 9th 2012, 9:24AM

by Jenny Ruth

The bank first bought into NZ Home loans, which has 59 franchises and 190 consultants nationwide, in 2006. It accounts for about 30% of Kiwibank's mortgage business.

The company says it will write more than $950 million in mortgages in the year ending June 2013 and expects to exceed $1 billion the following year.

Kiwibank's mortgage book stood at $11.43 billion at March 31.

NZ Home Loans chairman Neil Richardson says the company will continue to operate as a separate entity from its Hamilton head office under its existing management structure – chief executive is Mark Collins – with no change to its franchise business model.

“Both businesses were founded with the vision of putting New Zealanders into a stronger financial position,” Richardson says. “It was important for us to remain in 100% New Zealand ownership and keep millions of dollars of mortgage funding in the New Zealand economy.”

John Erkkila and Murray Ferguson set up NZ Home Loans in 1996.

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