BNZ returns to mortgage broker market

National Australia Bank's Bank of New Zealand has announced it is returning to offer mortgages through brokers for the first time in more than ten years.

BNZ's strategy of not using mortgage brokers has made it an outlier among the big banks and has been a factor dragging on its market share in residential lending, which makes up 60 per cent of New Zealand lending.

BNZ's new Chief Executive Anthony Healy, who took over from now-NAB CEO Andrew Thorburn, announced the highly anticipated move after a review lasting months.

Healy said BNZ would offer mortgages through the New Zealand Financial Services Group (NZFSG) network of brokers.

About 25 per cent of home buyers use brokers in New Zealand, with investors being the most aggressive users and the fastest growing category of borrowers.

"In an environment where home ownership is becoming increasingly complex we think that NZFSG brings expertise and customer focus to the table which aligns with our goal to help New Zealanders be good with money," Healy said.

NZFSG CEO Brendon Smith said BNZ mortgages would be available through its brokers from mid-2015 in Auckland and Christchurch, which are the two biggest markets in New Zealand.