Wizard sees opening

WELLINGTON - Wizard Financial Services Group, one of the non-bank discount lenders that have claimed a significant share of the Australian home mortgage market, will use lower interest charges as the spell to break into the Auckland market.

It will launch in New Zealand in a fortnight when two Auckland branches will start selling mortgages at rates that Wizard says will be more than a quarter of a percentage point less than those offered by the banks.

The company is targeting business worth $20 million a month within four months.

Established in 1996, Wizard is now 25 per cent owned by Australian media magnate Kerry Packer's Publishing and Broadcasting.

In December, its Australian loan portfolio stood at about $A1.5 billion.

Wizard says it is now issuing home loans worth $A200 million a month, or about 3 per cent of the Australian market's new business, and is getting about 8 per cent of refinancing.