Home loan sector too hot for Public Trust

RICHARD MEADOWS
Last updated 16:25 19/12/2012

Relevant offers

National business

Construction site injuries spike The Kiwi running Walmart Work for change, change for work Economic activity settles in south Firms must prepare vulnerable staff for robberies Canterbury buzzing but must look to future Airport runway to extend into Lyall Bay New freedom for credit unions Mainfreight fraudster jailed NZ wine favoured by British

The Public Trust has closed its mortgage books after struggling to keep up with heated competition in the residential lending sector.

The state-owned wills and estate provider has stopped accepting new home loans, instead deciding to stick to its core business.

Spokesman Brent Woodhead said the Public Trust had become well-known for estate planning over its 140-year history, but was not well-known to New Zealanders thinking about home loans.

Diversifying to offer mortgages had been a stretch, he said, especially given the highly competitive interest rate environment with incentives offered by the major banks.

Woodhead said it was too early to tell whether the loan book, which was worth $172 million as at June 30, would be kept or onsold.

However, the trust will continue to provide service to its existing customers, and any current applications in the pipeline would be processed as per normal.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content