Loan Market New Zealand has acquired PLAN New Zealand as part of its strategy to provide a broader financial services platform to mortgage brokers and their clients across the country.
PLAN New Zealand and Loan Market’s business will continue to operate as independent entities in the market place.
Loan Market Executive Chairman Sam White said the acquisition gives Loan Market the scale and reach to invest further into its New Zealand operations.
“I am delighted that we are able to bring together two of the most highly regarded mortgage broking groups in NZ under one company.
“This acquisition is good news for all brokers in both PLAN New Zealand and Loan Market, in that it gives certainty of ownership in the groups they belong to.
“It also facilitates our goal to build a broader financial services platform, inclusive of an insurance broking business, for the benefit of Loan Market/PLAN mortgage brokers and their clients.”
Mr White said there would be areas of synergy between the two companies.
“We believe the sharing of processes and information in areas such as technology, commission processing, training, and in the management and implementation of upcoming national regulation will prove beneficial,” he said.
“The combined resources of both companies will bring more value to every broker in the group regardless of which brand and business they trade under.
“The mortgage broking industry has been tested through the global financial crisis and has emerged as an industry that provides real value to its clients. As a consequence I believe that quality mortgage brokers should be expanding their product range to better look after the needs of their clients.”
Mr White said there is no plan to integrate PLAN New Zealand mortgage brokers into the Loan Market brand.
“We will continue to grow the PLAN New Zealand business aggressively,” he said.
“Of course if a broker wishes to change either the Loan Market brand to the PLAN brand or vice versa, from one business model to another, we will be happy to facilitate that.”
Mr White said there will be no changes to the management structure of either Loan Market New Zealand or PLAN New Zealand. The operational leaders of both businesses will report to Mr White.
Loan Market will also honour all commitments that the previous management of PLAN New Zealand has made to their brokers in moving to a flat fee model.
Mr White also anticipates that both PLAN and Loan Market mortgage brokers will reap the rewards of shared knowledge and processes to better facilitate existing and pending legislation that aims to regulate the mortgage broking industry.
PLAN New Zealand is part of the PLAN mortgage broking group which operates in both Australia and New Zealand, and was previously owned by Challenger.
In October 2009 Challenger sold its Australian mortgage management and broking business to the National Australia Bank and it was at that time that Loan Market began exploring the opportunity of taking the 100 per cent stake in PLAN New Zealand.
Loan Market currently has approximately 50 mortgage brokers and staff in New Zealand and over 400 mortgage brokers across every state in Australia; securing in excess of $600 million in home, commercial and business finance each month.
For further information:
Loan Market Executive Chairman