Home loan sector too hot for Public Trust

Last updated 16:25 19/12/2012

Relevant offers

National business

Apple iPhone sales in China soar, revenue jumps Petrol prices rise 3c a litre, diesel up 2c Papatoetoe shop owner fed up with council indecision Auckland officials face corruption charges Hospitality body may sue Christchurch City Council over alcohol rules Ports of Auckland wharf expansion challenge to Court of Appeal New Zealand’s ASEAN trade ties could double in next decade Training the midas touch Hundreds may lose in LeftBrain liquidation The Colombo gears up for development

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