Smaller Banks Gain Ground on Larger Rivals in NZ Home Loan Market
New data from the Reserve Bank Dashboard shows that BNZ and Kiwibank are gaining ground on their larger rivals in New Zealand's home loan market. Despite holding only 16.9% of the existing market, BNZ captured 27.7% of new lending in the June 2026 quarter.
Kiwibank also outperformed its size, winning 10.4% of new business on an 8.0% book share. ANZ and ASB, on the other hand, lost ground, with ANZ winning just 26% of new mortgage business in the quarter and ASB taking only 12.2%. Westpac joined them among the underperformers.
According to Interest.co.nz banking analyst David Chaston, this data helps explain recent pricing behaviour among the larger banks. 'This helps explain why ANZ has been prepared to drive margins lower to recover their share slide,' he said.