Otago Property Investors Association Inc

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08-10-2007

BNZ denies it's re-entering broker market

Speculation has been rife recently that the Bank of New Zealand plans to re-enter the mortgage broking market.

The bank formally stopped using brokers a number of years ago. The exit came after brokers reduced the amount of business it put BNZ's way as brokers couldn't offer the popular Global Plus product to clients.

Since BNZ exited the market it has strongly pushed the line it doesn't use brokers – earning the tag of being "anti-broker".

However, there has been recent speculation that BNZ would change its position. One of those is the recent appointment of a new managing director, Cameron Clyne.

It is firmly believed by m any that BNZ's "anti-broker" position was driven by former managing director Peter Thoedy.

The second factor is that other banks are cutting the level of upfront commissions they pay brokers, thus making it more economic for BNZ to re-enter the market.

BNZ external relations manager Diane Maxwell told Good Returns there was no change to the anti-broker position.

She said that the bank was not recruiting business development managers for re-entry to the broker market and no new broker unit had been set up.

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