Bank of New Zealand has decided to stop dealing with mortgage brokers and concentrate on direct sales. The bank has told brokers their agreements will be terminated from June 1. Personal financial services general manager Chris Black said brokers had not provided a significant part of the bank's home loan business. This has come through in market share figures which shows that while all the other banks have been increasing sales via mortgage brokers BNZ has gone backwards.
Part of the reason is that the bank won't let brokers use the successful Global Plus loyalty points programme.
"We have made this decision after an extensive strategic review and because the broker channel has not been a significant part of our home loan business," BNZ Personal Financial Services general manager Chris Black says. "While other banks use brokers extensively, only about 5% of BNZ home loans are originated from mortgage brokers."
Currently, BNZ is about number four in the mortgage market with 15% market share.
Eight positions in Auckland and Wellington would disappear because of the move.
