Squirrel Mortgages’ finds a nut, acquiring Christchurch rival

Friday, 20 September 2024

Squirrel Mortgages chief executive David Cunningham says the acquisition of NZ Mortgages was a natural opportunity for growth.

One of New Zealand’s best known mortgage advice companies will become a bigger force in the industry with the acquisition of a South Island counterpart.

Squirrel Mortgages has announced it’s picked up a majority stake in Christchurch-based mortgage brokerage, NZ Mortgages, and the businesses will merge under the Squirrel brand.

NZ Mortgages was founded by Nathan Miglani in 2017, and has grown from a solo operation to a business with over 20 staff.

It is Squirrel’s second big acquisition in recent years, after it acquired Wellington-based The Home Loan Shop in 2022.

Squirrel chief executive David Cunningham said it marked an important next step on the company’s mission to become an iconic New Zealand brand with a nationwide presence.

“With our roots in Auckland, and now a strong presence in Wellington, the South Island was the natural next opportunity for growth.

“And when you’re looking to establish a brand presence in any new market, you can’t beat having an established team on the ground who already has all the local knowledge.”

Nathan Miglani will join the Squirrel Mortgages leadership team, and will be responsible for growing the brand’s market share throughout the South Island.

Miglani will join the Squirrel Mortgages leadership team, and will be responsible for growing the brand’s presence and market share in Christchurch and throughout the South Island.

He said the partnership was a chance to create something bigger and better for New Zealand’s mortgage industry.

“Together, we’ll be able to offer new and innovative mortgage and funding solutions that otherwise wouldn’t be possible, better serving clients both in Christchurch, and across the South Island.”

Squirrel Mortgages was founded by John Bolton 16 years ago, and the company is now the country’s largest independent mortgage broker.

Founded by John Bolton 16 years ago, Squirrel has grown into the country’s largest independent mortgage broker.

Other big brokers, such as Loan Market and Mike Pero Mortgages, are owned by banks or financial companies, while NZ Home Loans is a network of advisers that are part of the 100% government owned Kiwi Group Capital Ltd.

The company helps people secure over $3 billion in mortgages each year, which is one in every 20 new mortgages by value.

The Commerce Commission’s report slams NZ's banking sector for poor competition. It calls for more capital for Kiwibank, faster open banking, and better consumer choice. Finance Minister Nicola Willis promises action to address these issues.

It is also a non-bank lender, and over the last year its loan book grew by 50% to over $200m.

Squirrel’s acquisition of NZ Mortgages was its second big acquisition in recent years, as it acquired Wellington-based The Home Loan Shop in 2022.

Its merger with NZ Mortgages would grow Squirrel’s advisory team to over 50 people, but the two companies would operate as separate brands until early 2025.

Mortgage advisers have become a powerful force in New Zealand, and now arranged 66% of new home loans for homebuyers through banks and other lenders.

But the industry recently came under the Commerce Commission’s radar, as it is concerned advisers are not doing enough to drive bank competition on mortgage rates.

In its final report into the banking sector, the Commission said that where possible advisers should present clients with at least three actual offers from lenders.

Mortgage advisers were not supportive of the suggestion, and have been vocal about banks’ failure to invest in technology that would speed up processes.