News

Media release

For immediate release

Wednesday, 5^th 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 1^st, 2012 New Zealand Home Loans became 100 per cent owned by Kiwi Group Holdings (who also own Kiwibank).

ENDS

For further information please contact:

Mark Collin, CEO New Zealand Home Loans

Tel: 027 501 8870

E: mark.collins@nzhomeloans.co.nz

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.

KiwiSaver is providing opportunities for more first home buyers to get a foot on the property ladder. Find out more about how KiwiSaver could help you in our latest YouTube video.

Are you thinking about making the move from renting to buying your own home? Not sure if now is the right time? New Zealand Home Loans CEO, Mark Collins, gives an overview of things you should consider.

Watch on YouTube

Media release

Friday 26 October 2012

New Zealand Home Loans wins Deloitte Fast 50 Award

The increasing popularity of New Zealand Home Loans as a home loan provider has been recognised in this year's Deloitte Fast 50 Awards, announced this week.

The franchise company, which is headquartered in Hamilton, was declared the Fastest Growing Mature Business in the Central North Island and was the only home loan provider to get an award.

New Zealand Home Loans CEO Mark Collins says "this award is great recognition of the efforts of our team nationwide and also our clients who have been spreading the word to others about how New Zealand Home Loans has helped them to become debt free faster."

The award is a testament to the company's unique proposition says Mark. "We prioritise getting clients out of debt, not into it. This has enabled us to stand out in the market, and grow our business substantially in a tough economic climate."

In the last two years alone, the number of New Zealand Home Loans branches nationwide has increased from 47 to 60, and this financial year is on track to lend a new record of more than $1 billion to New Zealanders.

"Our model seems to be striking a chord with Kiwis who are treading carefully in today's economic conditions and housing market, and making every penny count," says Mark Collins.

"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."

The wholly New Zealand owned and operated franchise company was set up in Hamilton in 1996 and now has branches throughout New Zealand. Mark Collins says the company's increasing popularity as a solid franchise opportunity has been a big factor in its growth. New Zealand Home Loans has a steadily growing nationwide network of 60 branches. Twelve 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

On July 1 New Zealand Home Loans became 100 per cent owned by Kiwi Group Holdings (who also own Kiwibank)

ENDS

For further information please contact:

Sherryl Arneil

T: 021 445093

E: sherryl@sda.net.nz

New Zealand Home Loans is delighted to announce its sponsorship of parkrun New Zealand. As a sponsor New Zealand Home Loans is supporting the existing parkruns in Lower Hutt and Cornwall Park and the establishment of new events throughout the country.

"We're thrilled to be supporting the growth of parkrun in New Zealand," said CEO and sometimes runner Mark Collins. "We've been interested in a community based sponsorship opportunity for a while so when our Wellington North Business Owner Allan Hartley told us about parkrun we knew it was exactly what we'd been looking for."

New Zealand Home Loans is a dedicated home loan provider, committed to helping New Zealand families become debt free, faster. A nationwide Franchise network established in 1996, it has 60 franchises throughout New Zealand and has helped its clients save over $20 million in interest costs. Wellington was the location of the very first Franchise and in the past 15 years has helped hundreds of Wellington families into a better financial position.
"We show our clients how to make genuine interest savings, taking years off their mortgage and it's not from interest rate reductions!" states Mark. "Using our unique personalized planning software, debtnav, clients learn how to set financial goals with a plan that they can monitor daily to track their progress." A regular review program helps clients remain focused on their goals.

"The process our clients go through with their finances is very similar to the process of participating in parkrun. You set your goal, you plan how you're going to achieve it and then you make it happen. And just as the wonderful parkrun volunteers are there every week, giving you encouragement and keeping track of your times so you can see yourself improve, our New Zealand Home Loans consultants are there to encourage our clients to achieve their financial goals."

Look out for Allan Hartley at parkrun Lower Hutt and Dave Cutler at parkrun Cornwall Park as they set about achieving their parkrun goals.

Recent research has identified that many kiwi families are worried about their finances. New Zealand Home Loans can help ease this stress. Through our debt management system we will help you define your goals, create a plan and track your progress. We also provide free on-going consultations to make sure everything is still going to plan and to help you adjust your plan for any changes that may come along.

If you are currently a New Zealand Home Loans client, remember that you can have a free consultation with your consultant at any time. Simply phone your branch to make an appointment. Peace of mind is just a phone call away.

Click here to view our latest youtube video.

The economic climate continues to challenge New Zealand businesses but our teams have risen to the challenge and we were able to celebrate another year of helping our clients achieve their milestones.

A big part of the New Zealand Home Loans culture is celebrating the success of our Consultants, Business Owners and Franchises. We do this every year at our annual conference. This year our conference was held in Auckland and we were pleased to be able to acknowledge the following people for their success during the last 12 months;

#1 Client Servicing Consultant – Emm Langridge, Canterbury Metro
#1 New Business Consultant and Rookie of the Year – Ross Whitmore, Takapuna
#1 Business Owner – Jo McRae, North Harbour

Branches of the Year:
- Mana – Chris Porter and Tracey Hayston
- Christchurch – Allan and Rachel Sexton
- Paraparaumu – Glen Mattingley
- Northcote – Rex and Joan Yap
- Rotorua City – Mark and Claire Sims
- North Harbour – Bob and Jo McRae
- Takapuna – Brett and Chandy Haeger

Media release
9th July 2012

PURCHASE OF NEW ZEALAND HOME LOANS COMPLETE
New Zealand Home Loans Ltd, based in Hamilton, is now totally owned by Kiwi Group Holdings Limited, the parent company of Kiwibank. Kiwi Group Holdings bought a 51 per cent shareholding in New Zealand Home Loans in 2006 and has progressively increased its shareholding since then. It has now completed the purchase of the remaining 24 per cent of the shares.
New Zealand Home Loans has a nationwide network of 59 franchises and 190 consultants and accounts for 30 per cent of Kiwibank’s mortgage business. This year the company will write more than $950 million and is expected to make the billion mark in the next financial year.

Neil Richardson, chair of NZHL, said the company will continue to operate as a separate entity and  there will be no change to the franchise’s successful business model.

“Kiwibank and New Zealand Home Loans will operate as separate but complementary businesses. Both businesses were founded with the vision of putting New Zealanders into a stronger financial position. It was important for us to remain in 100 per cent New Zealand ownership and keep millions of dollars of mortgage funding in the New Zealand economy, so we’re delighted with this move.

The buyout further augments the security and stability of New Zealand Home Loans financial position, providing a solid base for its goals to double its turnover by 2017,” Mr Richardson said.

New Zealand Home Loans will continue to operate under its existing management structure from its Hamilton headquarters, with Mr Richardson remaining as chair and Mark Collins as CEO.
New Zealand Home Loans was set up in 1996 by John Erkkila and Murray Ferguson.

How New Zealand Home Loans works
New Zealand Home Loans 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 household debt. 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 salaries 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.

The truth about Interest Rate Discounts

The world of interest rates has changed dramatically over the last few years with the OCR still at an all time low and banks offering discounted interest rates to woo clients. Securing the best rate you can at the time is good but as we’ve always maintained “it’s not the rate you pay but the rate you pay it off” that will make the biggest difference overall.

Consider this example:

·       $250,000 mortgage

·       30 year term

·       Interest rate - current floating rate of 5.85%

·       Repayments $1,474.85 per month

·       Total repaid over 30 years = $530,946

·       Total interest paid $280,946 ($30k more than the original loan amount)!

Interest rate reduction

Now let’s look at the same scenario but with a reduction of 0.5% in the interest rate, bringing the rate to 5.35%.

·       $250,000 mortgage

·       30 year term

·       Interest rate – discounted rate of 5.35%

·       Repayments $1,396.03 per month ($78.82 per month or $945.84 per year less than above example)

·       Total repaid over 30 years = $502,570.80

·       Total interest paid $252,570.80 (almost the same as the original loan amount)!

In this scenario over the lifetime of the loan you’ll have saved yourself $28k in interest costs compared to our first example.  It’s important to remember though, that it’s unlikely that you’ll be on this rate for the entire 30 years of your loan.

$28k’s pretty good you say? Let’s look at another example

Channelling

Channelling is when you leave any surplus funds you have in your home loan account. These funds are then off set against your home loan so you only pay interest on the “net balance” owing.

If you had a surplus of just $100 a month (over the life of the loan), making no extra repayments at all, the total amount you’d pay to the bank is $478,036 of which $228,036 is interest costs. This is a whopping $53k less than in our original example.

·       $250,000 mortgage

·       30 year term

·       Interest rate - current floating rate of 5.85%

·       Repayments $1,474.85 per month

·       Total repaid over 30 years = $478,036

·       Total interest paid $228,036

A summary of these examples is to the right:

So as you can see, there are significant savings that can be made from interest rate reductions, and channelling your income. The point to note is that the factor that has the biggest impact and generates the most savings, channelling, you have full control over and can implement regardless of the current interest rate. Interest rates, on the other hand, which have the least impact, you have little or no control over.

Economists don’t agree on much, but one thing they do agree on is that, at some point in time (they can’t agree on when) interest rates will go back up. While interest rates are at an all time low, now is an excellent opportunity to make extra repayments on your home loan and reduce how much you owe the bank, so that when interest rates do go up you will be in a stronger financial position to cope with this. By using a combination of channelling and the best available interest rate you can save tens or hundreds of thousands in interest payments and be debt free years earlier.

Choose Precious

There’s nothing more precious in the world

$10,000 FREE life insurance for new parents.

As a parent you are your baby’s entire world, but it’s not just your baby’s life that is precious, it’s yours as well. New Zealand Home Loans has partnered with Sovereign to help you protect your precious bundle of joy with $10,000 FREE life insurance for you during your baby’s first year.

It’s quick and easy to register; you’ll get automatic cover, without having to answer a bunch of questions.

Simply go to www.chooseprecious.co.nz, before your newborn is six months old to register.

During registration you’ll be asked to enter this unique code: CP303

This offer is not just available to you, as a New Zealand Home Loans client, but also to your friends, family, colleagues or neighbours. Just pass this on to them and make sure they enter the unique code above when they register.