Co-operative exploits temporary window to grow low equity mortgages
The former PSIS' June quarter disclosure statement shows it grew its mortgage book by $14.9 million to $1.12 billion in the three months ended June with mortgages with loan-to-valuation ratios (LVRs) above 90% accounting for $8.85 million of that growth.
The bulk of the rest of the growth, $5.77 million, came from mortgages with LVRs below 80%.
If the Reserve Bank figures prove to be a reliable proxy for the numbers in banks' quarterly disclosure statements, that kept Co-operative's market share steady at 0.64%.
Chief executive Bruce McLachlan says his bank saw a temporary "window of opportunity" in the low equity space. "There was a part of the market that wasn't being serviced very well because everyone had cranked down over the last couple of years on high LVR lending," McLachlan says.
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