NZ Adviser: non‑banks top banks

A new New Zealand mortgage broker survey found non-bank lenders scored higher than traditional banks on the partnership measures advisers say matter most. The research, conducted by Adaptive Intelligence between April 2 and April 10, drew responses from 224 brokers and ranked lenders across 15 weighted attributes, according to interest.co.nz and NZ Adviser. Pepper Money led all lenders with an 81% weighted score, ahead of ANZ at 75%, while Basecorp Finance and Avanti Finance also outscored every major bank. The findings point to a gap between where brokers place most of their volume and which lenders they rate most highly on day-to-day support. ### Which lenders came out on top? Pepper Money posted the highest weighted performance score at 81%, followed by Basecorp Finance at 77%, Avanti Finance at 75% and Finbase at 65%, the survey results showed. Among the big five mortgage banks, ANZ ranked first at 75%, followed by ASB at 71%, Kiwibank at 70%, Westpac NZ at 67% and BNZ at 58%. Smaller banks sat below ANZ and ASB, with TSB at 63%, SBS Bank at 54% and The Co-operative Bank at 53%. (interest.co.nz) ### What were brokers actually judging? Flexible credit policy ranked as the most important attribute, with 60.1% of respondents calling it “very important,” according to the survey summary. Commitment to the adviser channel followed at 58.9%, then helpful credit assessment staff at 58.3%, fast turnaround times at 57.1% and best product pricing at 55.5%. Lower down the list were digital tools at 38.8%, post-settlement client support at 30.2% and call centre support at 20.5%, suggesting brokers put more weight on credit access and human support than on technology features alone. (interest.co.nz) ### Why did non-banks score better than banks? NZ Adviser said the non-bank sector appeared “better aligned with what brokers want day-to-day,” particularly on credit flexibility and commitment to the adviser channel. That conclusion was tied to the survey’s weighting system, which gave more importance to the factors brokers said mattered most rather than to brand size or market share. interest.co.nz reported the same pattern, with non-banks leading on the attributes advisers ranked highest. (interest.co.nz) ### If brokers rate non-banks higher, why do banks still get most of the business? Cotality estimated broker-originated lending now accounts for about 60% of all new New Zealand home loans, NZ Adviser reported. Yet the same survey found brokers still placed 86% of their business with the main banks, 6% with other banks and 8% with non-banks. Submission data showed ANZ was the most-used lender, with 98% of surveyed brokers saying they had sent it applications in the previous 12 months, followed by ASB at 94%, BNZ and Westpac at 90%, and Kiwibank at 64%. (mpamag.com) Among non-banks, Avanti was at 59%, Basecorp at 29% and Pepper at 21%. ### What else may be helping non-banks compete? New Zealand’s Depositor Compensation Scheme took effect in July 2025, and finance company mortgage lending has since risen more than 30%, according to the Reserve Bank’s May 2026 Financial Stability Report as cited by NZ Adviser. NZ Adviser said that may have narrowed the funding-cost gap with major banks and given non-banks more room to compete on credit policy and pricing. That explanation was attributed by the publication as a possible structural factor behind the stronger non-bank scores. (mpamag.com) ### What should readers watch next? The next data point is whether broker submission and volume shares begin to move closer to the satisfaction rankings. interest.co.nz said ANZ, BNZ and Westpac have all disclosed broker-originated mortgage exposure in recent interim results, with ANZ at 53% of its mortgage portfolio as of March 31, BNZ at 40% at March 2026 and Westpac at 58% at March 2026. Future lender results and any follow-up Adaptive Intelligence survey will show whether non-banks can convert higher broker ratings into a larger share of broker-written home loans. (mpamag.com) (interest.co.nz)