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Three second tier lenders have quit New Zealand in the last year - and those in the sector say it means less competition for the big banks.
Non-bank mortgage lender Bluestone Home Loans announced last week it would exit New Zealand, and will stop accepting new home loan applications from this Friday.
Another large provider, Resimac, pulled out on July 1, while last year HSBC ceased second tier lending here.
Non-bank mortgage lenders give loans to higher risk borrowers, unable to meet regular bank criteria because, for example, they are they are self employed, or don't have a big enough deposit.
Last week the Commerce Commission released a report about the need for more competition for the big four banks, recommending the government-owned Kiwibank be strengthened and more progress be made on so-called open banking.
So what does the exit of these second tier lenders mean for that competition?
Kathryn speaks with David Cunningham Chief Executive of mortgage broker Squirrel and Massey University Associate Professor of Banking, Dr Claire Matthews.