The latest property market data shows steady increases in sales volumes and prices nationwide. And that’s despite the lockdown restrictions in Auckland and the rest of the country.
Also since the start of the Covid crisis, there’s been a sharp rise in demand for home loans from nonbank
lenders.Roughly 3% of home loans in New Zealand are from non-bank lenders. However, many are reporting significant increases in enquiries since the start of the pandemic. Resimac and Select, for example, has seen enquiries grow by 30% since Easter.
A buoyant property market and record-low interest rates are undoubtedly fueling the increased demand. Plus, there’s no doubt the big banks have become more risk-averse. Many have tightened their lending criteria as the economic fallout from Covid-19 continues to bite. In addition, the Reserve Bank has put pressure on banks to hold onto capital.
However, it’s the flexibility of second-tier lenders that makes them an attractive option, especially for those who have been turned down by the banks. People who have had a “credit issue”, or who are self-employed and find it difficult to prove their income are increasingly looking to non-bank lenders.
And contrary to popular belief, the banks don’t have a monopoly on the best mortgage rates. Nonbank lenders can be just as competitive, particularly in the variable interest rate space. And because they are smaller, there’s often less paperwork to complete, which means they offer a faster, more responsive service.
Now is undoubtedly a good time to buy property in New Zealand. And thanks to the increased popularity of non-bank lenders, the options open to borrowers are more flexible than ever.If you’re thinking about a non-bank loan, then let’s talk.
Get in touch with our LOAN MARKET team Member Sifa Sifakula call or email
To learn more https://www.loanmarket.co.nz
Strong results continue
As we enter the final full week of October our results reflect the continued momentum of the real estate market.
The economists are citing price increases for 2021 based on three main factors; firstly, the low cost of money borrowing at historic low interest rates which is aiding affordability. Secondly, the increased migration numbers of people resettling back to New Zealand and the growing confidence that New Zealand has curbed the recent pandemic crisis. Are these factors correct? Should there be other factors that are just as important? Only time will tell.
If you are considering selling, then clearly there is significant momentum in the market that is in favour of sellers. Well marketed properties that have transparency around pricing for buyers give a higher response rate and with the current pre-approval levels there is a deep buyer pool.
Interest-only home loans: smart or silly?
As you hunt down houses and chat to lenders, you could bump into interest-only (IO) home loans. They sound nifty and are certainly an alternative to regular mortgages. But are these loans the way to go for you? Content originally appeared on The Real Estate Voice Interest-only home loans: smart or silly?