An in-depth analysis of mortgage registration by the NZ Herald’s Insights team has concluded a ‘changing of the guard’ among the banks with ANZ set to take over as Auckland's leading mortgage provider.
Mortgage information in the first five months of 2016 for all of New Zealand's 1.7 million land titles was collected and broken down by neighbourhood and year, to assess which areas of New Zealand are the most and least leveraged.
The Herald’s results show nearly one in three (32.4%) mortgages registered in Auckland this year were in the name of ANZ, significantly ahead of its rivals.
The 2016 market share for ASB
was 22.7%; Westpac
16.5% and the Herald said if the trend continues, ANZ will overtake ASB later in the year as the largest mortgage provider in Auckland.
The Herald article stated the banks they contacted broadly agreed with the Herald's conclusions about the market breakdown.
Between them, the date showed the big four banks have issued nearly 93% of registered mortgages, leaving the rest of the market to regional players such as TSB, Kiwibank and HSBC.
ANZ general manager of banking products Sarah Berry, said, "Our strategy really reflects that we've been underweight, but now we're in line with the market.
Given ANZ is the largest bank in the country, Berry put the improvement in Auckland market share down to being able to take advantage of its scale.
"We've got more branches, more mobile bankers, and also backed up with a strategic focus on customer service," she said.
An ASB spokesperson said in a statement. "ASB's strong competitive position in Auckland comes from its earliest foundation as an Auckland bank in 1847. We have continued to grow since that time by understanding our customers and their needs."
"Competition between lenders in the Auckland housing market has been intense in recent years. ASB's approach has been to focus on quality lending as opposed to chasing market share."
A Kiwibank spokesman said, "Competition amongst banks is healthy, nationwide. Our strength has always been in our competitive pricing."
TSB dominates the New Plymouth market, with 40.2%of mortgage registrations according to the date and is also the biggest player in Stratford (29.8%) and South Taranaki (27.6%).
UK-based bank HSBC has 0.8% of the Auckland market, which accounts for three-quarters of its New Zealand property lending, according to the Herald analysis and revealed the value of its New Zealand mortgage book was around $1.2 billion at the end of 2015.