Mike Pero hits back at BNZ over mortgage ads

1.00pm

Mortgage broker Mike Pero Mortgages has hit back at the BNZ over its recent advertising campaign promoting mortgage products with "broker-free" interest rates.

Mike Pero said his company "can also offer the same rate as the advertised BNZ rate, despite their claims that their rate is possible only by excluding broker commission".

The BNZ ceased working with mortgage brokers a year ago but launched the campaign last week "to put some emphasis on it", BNZ communications manager Owen Gill told the National Business Review (NBR) last week.

The bank's advertising says "We've cut out brokers to give you this great rate". As well as eliminating brokers' fees from mortgage costs, Mr Gill said the bank had felt it could provide better service to customers directly.

Mr Pero was "very disappointed" by the comments made by the BNZ in the NBR "and their aggressive negative attitude towards the mortgage broking industry in New Zealand", he said in a statement today.

Mr Pero said it was "incorrect to imply that brokers' fees are factored into an increased interest rate that is passed on to clients".

"Brokers offer the lender an excellent means to market their home loan products and the opportunity to take on new clients without the added marketing and staffing costs. These savings can be passed to consumers in the form of a better rate."

Mr Pero whose company is about to list on the stock exchange next week said: "the timing of the BNZ advertising and PR campaign seems to be a very cynical smear campaign and attempt to undermine Mike Pero Mortgage's share offering".

Mike Pero Mortgages is looking to raise between $7 million and $10 million in a float on the stock market this month.

Earlier this month, Christchurch businessman George Gould bought into the business, taking a 90 per cent stake for a confidential price.

Mr Pero maintained a 10 per cent share, and has continued to work as the front man for the company.

- NZPA