Category: Public Media

Source: Radio New Zealand

Home loan borrowers are switching banks in record numbers, chasing cash back incentives.

But who’s paying the price?

Reserve Bank data shows there was $14.1 billion of home loan lending in December, $3.6b more than the previous strongest month, which was March 2021.

Cotality chief property economist Kelvin Davidson said it was a “large spike” in lending activity, for both owner-occupiers and investors.

He said some of it was for people buying houses but the bulk of the activity came from people switching banks.

There was $5.8b in home loan lending refinanced in the month, more than double the previous high. Switches made up 41 percent of the total movement of lending, compared to the previous highest level of 30 percent in June.

Davidson said it was all driven by increased “cashback” activity – where banks try to tempt borrowers in by offering them a percentage of their loan total, in cash.

“Remember that the banks were all offering 1.5 percent cash for lending for a period of time in November, which then fed into December’s strength once the loans had actually been drawn down.”

Davidson said it seemed that borrowers with large loans and large incomes were playing a key role in the activity.

“The share of lending being done at a high debt-to-income lending (DTI) actually dropped fairly sharply in December; or in other words, a lot of lending or switching was done at lower DTIs. For example, in relation to investment collateral, high DTI loans fell from nearly 17 percent of the total in November before exemptions to around 12 percent in December.”

He said December’s data was a story of “huge gross churn”.

“Borrowers will have been the winners, although some banks may have gained market share.”

Not every borrower benefits?

But chief executive at mortgage broking firm Squirrel, David Cunningham, said not every borrower would benefit.

Those who could move banks would get the extra cash, but those who were not able to could end up paying a higher price.

People usually cannot move without paying break fees if some of their lending is on a fixed term, or for a number of years after they accept a cash back offer.

“What you end up with is your new customers get their 1.5 percent cashback, but existing customers go well, hold on, why are they getting this deal?”

People who could move might have decided to take up the offer at another bank instead, he said, creating a giant “pass the parcel” scenario of borrowers.

He said it left the question of what fixed rates the banks would be offering if they were not funding cash backs.

“I’d argue we would have got the one-year down at four percent, but cash backs have become the new battleground.”

He said banks no longer tried to compete with lower interest rates to get new business.

Those lower interest rates would also benefit existing borrowers who would be able to claim them when they came to refix even part of their mortgage, and they would not have to change banks to do so.

But Claire Matthews, a banking expert at Massey University, was not so sure that existing borrowers were losing out.

“I’m not convinced that cashbacks would be having a significant impact on interest rates because they are only generally available to a subset of customers, and they are a standard time of marketing tool to attract new customers.

“Despite cashbacks, I think banks do still compete on interest rates, because that is still a key driver for borrowers given the longer impact and they will be important to a large portion of customers. And if they don’t qualify for the cashback, borrowers can negotiate with their bank for a better deal.”

ANZ, which initiated the 1.5 percent cashback offer, said it was committed to offering competitive home loan rates, too, for existing borrowers and new customers.

“Customers consider a number of things when choosing who to get a home loan from – pricing, approval times and other incentives on offer. Cash contributions give customers extra support upfront, helping with the cost of moving, refinancing or other expenses.

“Our recent cash contribution campaign was distinct from our choices on interest rate settings. We saw strong demand for the cash contribution campaign but for commercial reasons we cannot release details of specific amounts.”

BNZ said it would look at each customer’s situation individually to ensure it was meeting their needs and giving them the best overall value.

“Cashbacks are one tool that can help customers with costs when purchasing their first home, moving house, or switching banks,” general manager of home lending product James Leydon said.

“We currently have a cashback offer for first home buyers, offering at least $5000 cash back on new home loans of $250,000 or more, even with a deposit as low as 5 percent.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The Auckland Anniversary floods of January 2023 devastated much of the North Shore’s Wairau Valley. Particularly badly hit were the suburbs of Milford, Sunnynook, Forrest Hill, and Totara Vale. In Milford alone, 150 houses were classified as Category 3, land now considered to be too dangerous to live on.

Three years later, the community is working together to redesign the increasingly empty streets, and to turn the Wairau creek catchment into something that locals will treasure rather than fear.

Before the 1960s, flooding was common along Milford’s Nile Road. Two major floods, in 1928 and 1953, prompted the former Takapuna City Council to seek ways to tame the creek that drains the Wairau Valley.

Longtime resident Sean D’Souza, who lives near Nile Road, said he understood much of the area “was always muddy, always filled with water”, before modern development.

In the mid-1960s, a network of concrete stormwater culverts was built to channel water parallel to Wairau Road. The system begins near the Northern Motorway north of Tristram Avenue and winds down through the valley toward Milford, where Wairau Creek meets its outlet near the shops two kilometres away. The construction appeared to solve flooding problems and opened the area to commercial and residential expansion.

On Auckland Anniversary Day 2023, the city endured a record deluge of around 245 millimetres in 24 hours. The Wairau culvert system from Target Road through to Milford was overwhelmed. Floodwaters surged through homes, businesses, and properties. Two men lost their lives, and more than 250 homes across the Wairau Valley and nearby suburbs were red or yellow stickered as unsafe.

By late 2025, over 150 properties in Milford had been purchased by Auckland Council. Roughly 45 Category 3 houses had already been removed or demolished, leaving wide stretches of cleared land where neighbourhoods once stood.

The Milford Residents Association, led by co-chair Debbie Dunsford, consulted locals about the future of the cleared areas.

“We’ve probably spoken to or engaged with about 500 people over some months last year, and quite a few themes have come out, and the big one is the idea of a blue-green network with paths and cycleway and little bits of park and community activities running alongside or close to the stream,” Dunsford said.

Locals envisioned an interconnected corridor that improved safety while enhancing the area’s liveability.

In a statement to First Up, Auckland Council’s group recovery manager, Mace Ward, said the approach was about recovery and redesign, not merely repair.

“What we’re doing in Milford is about making the area safer from future flooding and creating a place the community can enjoy and feel proud of,” he said.

Some of the Category 3 land was expected to become part of a blue-green network to allow water to flow more naturally during heavy rain, framed by public green spaces.

The Ngā Wairau Flood Resilience Project, the council’s long-term plan, would be delivered in phases. The first stage involves reshaping nearby parkland, which is currently the home to the Takapuna Golf Course, to store floodwaters diverted from the Wairau culvert system, reducing pressure on the main channel.

Work is due to begin in 2027, with funding in place both for phase one of the project and for the property removals in the Wairau catchment.

Uncertainty over future

For residents still living near the creek, uncertainty remained. Large tracts of bare land were now scattered through Milford and the valley. Some wondered if rebuilding could occur on higher ground once flood mitigation was complete, while others urged caution.

“Well, I hope there’s no building there, because if flooding happens again, something has to go higher. But if replacements are built at higher elevations, that makes sense,” said D’Souza.

He believed significant engineering work was needed to widen and strengthen the waterway. “If they don’t open it up or find more room for water to get through, it’s going to come onto properties. Water is unstoppable.”

Still, he favoured patience over haste. “It’s not going to flood every day, it’s not going to flood every year, I don’t see the need to rush through the decision making. But there needs to be clarity.”

The council still seemed to be figuring out what to do, he added.

Neighbouring resident Graeme Treeby agreed the future vision was promising, though funding remained uncertain. “I’m kind of more excited about perhaps the bolder plan of widening the creek, of having walkways and cycleways along there as far as it will go,” he said.

Despite some frustration about slow progress, optimism persisted that something positive could emerge from the devastation. Dunsford, representing the Milford Residents Association, believed the transformation could ultimately enhance local life.

“There will be an opportunity to have open space that the public can use on a daily basis and the sort of recreation of that stream, a naturalised stream we are hoping for and something that does become a local treasure.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The mayor of Tauranga says they’ll start opening up the area around Mount Maunganui when it’s safe to do so, as police finish their recovery efforts following the deadly landslide.

All six victims of the slip that hit the Mount have been recovered and identified.

Police on Sunday stood down their operation at the mount, and the scene is expected to be handed back to local council in the coming days.

Tauranga Mayor Mahé Drysdale told RNZ the area was still dangerous.

“We need to understand how we can make that as safe as possible, what that impacts, what we can and can’t open, and as soon as we’ve done that we’ll get to work to do what we need to, to get as much of the area open as we can,” he said.

Drysdale said he was hopeful streets could be reopened in a number of days.

As for Mauao itself, Drysdale said it could be a matter of months before it could be reopened.

He said they would work with local Iwi to assess the situation.

“We’ll be working closely with them to come up with a plan to firstly assess the damage, understand what we’re dealing with, and then put in a plan in place to get that opened up,” he said.

“But, looking at the significant damage, I think we are talking months at least until we can open that up safely.”

Drysdale said the community was still reeling from what happened.

“We’re going to be feeling this for months, if not years to come,” he said.

“However, knowing that all the bodies have been recovered, and now also identified, it does make things slightly easier knowing that the families can have some peace, knowing that their loved ones are returned.”

Mayor offers condolences, thanks community

The mayor released a statement late on Sunday, sharing his and other councillors’ condolences to the families of those who lost their lives in the slip.

“While loved ones lost in this terrible tragedy have now been returned, we will continue to offer support to the families in the years to come and have been blown away by the care they have been provided by the police family liaison team,” he said.

“We extend our profound gratitude to all the emergency workers and volunteers who have worked tirelessly and with immense care to bring the missing loved one’s home to their families.”

Drysdale said it had been humbling to see how hard everyone worked and came together to give the families with closure.

He also acknowledged and thanked the community response to the disaster.

“In times of tragedy, the true strength of Tauranga is revealed in our unity and compassion. We will continue to support one another in the time ahead as the recovery of this tragedy and Mauao continues.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

In less than 10 years, nearly 100 Chemist Warehouses and Bargain Chemists have opened across the country – so where does that leave local pharmacies?

New 12-month prescription rules came into force this weekend, saving time and cutting GP visits for patients – but community pharmacists warn they are the latest in a raft of changes in a sector that is struggling to survive.

The rules mean that people with long-term, stable conditions can now get prescriptions of up to a year from their prescriber, which the government says could save up to $105 in GP fees annually.

Pakuranga pharmacist Vicky Chan says the change has no financial impact on her business but it adds to the hours of unseen, unpaid work she and other community pharmacists do.

“There will be more clinical responsibilities to make sure their health circumstances haven’t changed and that’s almost on us, the community pharmacist,” she says.

Chan, a member of the Independent Community Pharmacy Group, says government funding has not kept pace with other costs and she has to work harder to keep her business viable by offering extra government-funded services such as sleep clinics.

She is looking at buying a $100,000 pill-counting robot for her Auckland pharmacy but she worries that her business may not be able to support the investment in the future, given the threat of increased competition from discount pharmacy chains.

“In east Auckland we have seen another local pharmacy closed three months ago and there will be another closing at the end of the month. If you look at the numbers of pharmacy closures, I think we’re almost 100 community pharmacies down from 2020.

“There are a lot of workforce pressures, smaller operators are finding it harder to recruit and retain, there’s the burnout after the covid response, we did see a lot of people leave the profession.

“The funding hasn’t been recalibrated in a way that fits the model now.”

Chan says she spends a lot of time on tasks that make no money because she wants to do the best for her customers, some of whom are third generation.

A study by University of Otago in 2021 found that unfunded customer services comprise a significant share – between 15 and 50 percent – of a pharmacist’s daily activities, requiring cross-subsidisation using revenue from other activities like dispensing or retail sales.

https://ourarchive.otago.ac.nz/esploro/outputs/doctoral/Investigating-pharmacy-provision-patient-utilisation-and/9926478231001891

“I think a lot of work we do is invisible, that has helped reduce pressures on the GP, but also reduced ED (emergency department) admissions because we were able to pick those things up early, because we have that relationship with our patients,” Chan says.

Wainuiomata pharmacist Clive Cannons says people can come in to ask for a free diagnosis on an ailment or treatment, but there is nothing to stop them going elsewhere to buy the medicine if they think they can get it cheaper online or at a discount pharmacy.

He gets emotional when he talks about the threat to the 1000-odd community pharmacies around the country.

“I’m very worried,” says Cannons, chair of the community pharmacy group.

“We’ve lost our local GPs, we’ve lost those things that hold communities together and the last bastion is the local pharmacy.”

He admits that not all local pharmacies offer a top quality service and the sector needs to help itself to adjust to the growing competition from Chemist Warehouse and Bargain Chemist.

“However, there is a need for that high-service model where the owner knows their community,” he says.

Cannons’ group is calling for country-wide consistency in the way Health NZ grants contracts under the National Pharmacy Agreement.

In his Hutt Valley region he says new pharmacies can only get an agreement if the local funders consider there is a need. In other regions agreements are more accessible but that leads to oversupply.

He calls Pukekohe, on the southern edge of Auckland, “ground zero”. With a population of around 28,000, it has 13 pharmacies clustered in a high-volume area. Other parts of Auckland are also oversupplied, and many community pharmacies are struggling to break even.

Cannons’ group is also fighting industry deregulation proposals that would open up the pharmacies to non-pharmacists by removing the Effective Control Principles. Under those rules, pharmacies have to be more than 50 percent owned by pharmacists.

The associate health minister Casey Costello says deregulation will enable different models for pharmacy ownership, “allowing for more innovative and integrated healthcare that will improve safe access to medicines”.

A supporter of deregulation, Dr Eric Crampton of the think tank NZ Initiative, wrote last year that the existing ownership rules protect pharmacies, calling it an “odd little regulatory cartel”.

He cited a Ministry of Health report that it has not seen any clear evidence that the ownership restrictions contribute to patient safety or service quality.

Cannons disagrees.

“The questions is, what do the people of New Zealand want? What sort of pharmacy industry does the man on the street want. If they want us to go like America then that’s exactly what’s going to happen.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Heavy rain and strong winds are forecast to affect parts of the South Island from early Monday through to late Tuesday, with MetService issuing a series of severe weather watches.

MetService says a front will bring a period of heavy rain to Fiordland and southern Westland from early Monday, before a low-pressure system moves across the South Island on Tuesday, spreading heavy rain to parts of Canterbury and Marlborough and bringing the risk of southeast gales to the West Coast and Fiordland.

A heavy rain watch is in place for Fiordland from 12am to 3pm Monday. A period of heavy rain is expected that may approach warning levels.

The ranges of Westland south of Fox Glacier, including parts of Mt Aspiring National Park, are also under a heavy rain watch from 6am to 9pm Monday. There is a moderate chance the watch could be upgraded.

Further east, a heavy rain watch has been issued for Marlborough, south of Seddon, and Canterbury, north of the Rangitata River, from 2am to 10pm on Tuesday. Periods of heavy rain are expected, with totals that may approach warning levels.

Strong winds are also forecast on Tuesday, with a strong wind watch in place for the Westland and Grey Districts from 3am to 7pm. Southeast winds may approach severe gale strength in exposed places, with a moderate chance that the watch could be upgraded.

A separate strong wind watch covers Fiordland from 2am to 11am Tuesday, where southeast winds may also approach severe gale force in exposed areas.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand