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  1. #14531
    Guru Rawz's Avatar
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    Cyclical, as a customer I would be frustrated with your experience but as a shareholder I wouldn't worry.

    HGH are great at reverse mortgages, vehicle, construction, forestry, agri and transport finance.
    Banks (the real banks) are great at home loans and credit cards. Let them both do what they do best I say.
    And let them allocate precious capital to those areas they excel in.

    This offer is all about them testing the market and their online systems to see if they can write loans with as little employee involvement as possible. That is why the customer service rep told you there isn't a mortgage team to talk to, because there literally isn't by design. If you cant tick all the boxes and get the computer to say yes then they don't want to know ya. If you can then great, you get the good rate and HGH spend only a few FTE hours on closing out the deal.

    The banks have personal bankers spending hours with customers sitting in expensive branches. HGH trying to avoid this model.

    HGH Fintech soonish maybe

  2. #14532
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    Quote Originally Posted by Rawz View Post
    Cyclical, as a customer I would be frustrated with your experience but as a shareholder I wouldn't worry.

    HGH are great at reverse mortgages, vehicle, construction, forestry, agri and transport finance.
    Banks (the real banks) are great at home loans and credit cards. Let them both do what they do best I say.
    And let them allocate precious capital to those areas they excel in.

    This offer is all about them testing the market and their online systems to see if they can write loans with as little employee involvement as possible. That is why the customer service rep told you there isn't a mortgage team to talk to, because there literally isn't by design. If you cant tick all the boxes and get the computer to say yes then they don't want to know ya. If you can then great, you get the good rate and HGH spend only a few FTE hours on closing out the deal.

    The banks have personal bankers spending hours with customers sitting in expensive branches. HGH trying to avoid this model.

    HGH Fintech soonish maybe
    Yep, good post and good points, Rawz. I found an email in my junk off the back of the failed application, so have replied to that and will see where it goes. I'm probably stuck with Kiwibank for another year anyway due to the cash contribution effectively tying is in for 3 years, but regardless, will be interesting to go down the rabbit hole and see what the process looks like for potential Heartland customers.

    I suppose from my perspective, if they're going to make a play at the mortgage market (pretty high profile one at that due to the sharp rate), then they should either do it right from the get go, or just not bother, as a failed foray can be quite damaging. That said, the issue with my app may well have been something as simple as checking the wrong box. If revisited the criteria and fail to see any that we'd fail on, so may have been a mistake, or the system doesn't like our address.

  3. #14533
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    Quote Originally Posted by winner69 View Post
    Was thinking the same peat

    Also hard to maintain that huge 4.4% NIM when lending sub 2%
    I imagine you know how it works, w69, but if not, Snoopy explained it well a few months back. He'll be along shortly to put me straight, but something like 15% of Heartland's / depositor's money at whatever cost that may be, then the other 85% from the RBNZ printing machine at the OCR. All adds up to a ~4% NIM. The caveat here is that I may have all that wrong!

  4. #14534
    percy
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  5. #14535
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    Thanks for sharing Percy great to see everything on track with reverse mortgages.

  6. #14536
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    Quote Originally Posted by Cyclical View Post
    I imagine you know how it works, w69, but if not, Snoopy explained it well a few months back. He'll be along shortly to put me straight, but something like 15% of Heartland's / depositor's money at whatever cost that may be, then the other 85% from the RBNZ printing machine at the OCR. All adds up to a ~4% NIM. The caveat here is that I may have all that wrong!
    The 15 / 85 is how a 4% net margin becomes a good return on equity.

  7. #14537
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    Excellent news (heartland reverse mortgage enquiries increased 39% in 1st quarter) - although I find it strange this sort of material information wasn't released via NZX market announcement and instead is in an interview to a relatively small website.

  8. #14538
    Speedy Az winner69's Avatar
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    Quote Originally Posted by LaserEyeKiwi View Post
    Excellent news (heartland reverse mortgage enquiries increased 39% in 1st quarter) - although I find it strange this sort of material information wasn't released via NZX market announcement and instead is in an interview to a relatively small website.
    Overall profit expectations still within guidance so no need to disclose anything.

    Good sign though ...where would you draw the line as to what stuff you tell the market?

    Anyway the increase was probably expected / forecasted to make up for poor H1 - NZ Reverse Mortgages: Net operating income decreased -13.8% compared with 1H2020 to $11.2m.
    Last edited by winner69; 09-04-2021 at 09:42 AM.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  9. #14539
    Reincarnated Panthera Snow Leopard's Avatar
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    Quote Originally Posted by LaserEyeKiwi View Post
    .... a relatively small website.
    That relatively small website is part of the same empire as this forum.
    You are expected as a poster here to read it avidly (thus getting the inside line on the great companies on the NZX) and click at least 33% of the adverts to help pay for hosting your posts.

    Disc:
    om mani peme hum

  10. #14540
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    The on-line mortgage application doesn't seem to ask for the purpose of a loan like most banks do these days.... So, can I shift my floating loan on my standalone property to HGH and use the funds to buy more HGH shares? ...or would they regard that as a risky/poor investment?

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