Is he a first home buyer? Did have a track record of being a good punctual borrower with the bank?
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Blackcap it is simply not true it is easy to get a mortgage currently . Sure the LVR's have gone but lending with a 10 % deposit is limited. Also the customer will not have access to the "special " rates or will be subject to a LEM or LEI on the loan .
I have put up an article on a reply to SBQ that has pointed out why the banks are tightening up . Here is another.
https://tmmonline.nz/article/9765171...high-lvr-loans
Which goes to show the confidence that the banks have on issuing mortgages.
I'll reiterate, there are SOME major banks that DO NOT deal with mortgage brokers. I know this 1st hand experience and had been confirmed at both ends (by the broker stating so and so bank and approaching said bank directly).
If i'm not mistaken, it was Kiwi Bank that does not deal with brokers and asks the client to deal direct with them.
Why pay a mortgage broker to go around when the customer can visit each bank to get the best rate?
It's Ok if you have the time to visit each bank but do they have a branch in your neighbourhood/ town ? Banks are closing branches down at a fast rate . Brokers/advisors apparently do circa 40 % of the loans for ANZ ( and climbing) so someone must be doing something right ...
How do you know it’s the best rate ? It might be a good rate but how do you know if it's absolutely the best rate .
If you dealt with a specialist that had access to most of the providers and was doing regular business I'm sure they would have a better idea than you.
SBQ , you said Some major banks , Kiwibank is arguably not major ( less than 5 % marketshare) so name another one .
By the way Kiwibank do deal with brokers ,in particular NZHL , apart from that group they have been limited as they couldn’t possibly process the volume . Started to roll out in a bigger way now.https://www.goodreturns.co.nz/articl...er-market.html
I stand by my comment lending conditions have tightened .
https://www.nzadviseronline.co.nz/ne...rs-271967.aspx
Further evidence lending conditions have tightened -https://croakingcassandra.com/
"For households, the only material changes were (tighter) serviceability requirements. That is interesting – if not too surprising – given (a) slightly lower interest rates, and (b) some temporary easing in the Bank’s LVR restrictions."
SBQ - still waiting to hear about the banks that don't deal with brokers ?????
I got an approval for 15% deposit, no hassle. Arguably my finances are okay and job is with emergency services. Using Mortgage broker because I couldn't spend time to go around asking each bank. Funnily enough he did tell me he doesn't deal with Kiwibank which is my main bank.
ANZ today becoming the first bank to change its deposit rules on apartments of less than 45 square metres from 50% to 20% equity.
Gee less than 45m2 dwelling? Just right for the Kiwi family with 2 children to live in. :laugh:
Bernard Hickey has something to say in his article here about the banks adverse lending behaviour on apartments, describing it as a market failure:
https://thespinoff.co.nz/business/18...cold-and-mould
Quote:
Banks love discrete parcels of land with simple structures that are already built, that already have a certificate of code compliance and a residential resource consent embedded in the value of this ever-appreciating asset. It is money for jam with a very, very low capital requirement and an even lower risk of default.
Most banks loathe medium density housing developments with a cold, hard passion that has turned into to the phrase “bank-friendly” in the real estate ads for the exceptional apartment or townhouse that has slipped through the cracks into the mortgage book.
Anything else we need Bernard Hickey's opinion on?
This is great change. There's more than ever single people due to progressive destruction of family in our current society. There was a need for singles to be able to buy property and studio apartment is ideal for just 1 person.
exactly not a property fix for all .. but helps those singles or couples , investors that what to buy entry level shelter ...would be good if Govt would back this up with laws around Quality and lease increase limiteds etc .... as I've come across a few in Auckland with stupidly high land lease rates...
If kiwis want to live in new shoe box apartments then they should at least have protection against these predator developers poor construction methods + lease rates that skyrocket after only a few years ..land lease rates shouldn't be allowed to increase higher than the CPI
No different than house price rises, and buyers know what they are getting in to in a general way at least. Plus they buy in more cheaply than a freehold property.
Leasehold places may be even more favoured for rentals now, with smaller borrowing and ground lease payments still deductible for tax. The latter has always been the case for rentals and tends to make the sums look pretty good. Until the next ground rent review anyway!
Doubled post
I remember some 5 years ago a baby boomer commentator saying that FHBs should not expect to buy the type of property their parents bought as a first home. They should settle for a small flat. The trouble is that these days FHBs are older and often with families. So yep they often do have to settle for a small flat while the grandparents remain in their house and garden….
I would be very cautious taking on a high proportion loan buying into a market in which interest rates are possibly at their lowest point.
Ground rent increases merely reflect the increase in residential land values. In a period of rocketing house prices, it is the land component that is inflating far faster than the improvements.
FHB absolutely in general think that the first home should be what our parents would have considered 2nd or 3rd homes. Image is everything and there’s no common sense. A lot of the FHB I’m selling to don’t have kids but still want 3-4 beds not two beds. It’s great news about the apartments now needing only 20% because now the sensible ones will atleast have more choice.
The market is still massively under supplied. Multi offers are still happening 80% of the time and auctions are still getting brought forward. The only change I’ve noticed is that we are getting asked the question now about the market slowing which was never happening but this is quickly rebutted when we have 10 groups looking at the house per day in the weekend and end up presenting multiple offers by the Tuesday.
Whether it is a good time to buy a flat with only a 20% deposit when interests are at their lowest point for years and after so much price growth, remains to be seen.
Is NZ a low wage, low productivity economy where housing is a commodity for investors?
https://www.stuff.co.nz/national/pol...is-a-commodity
Whether it is a good time to buy a flat with only a 20% deposit when interests are at their lowest point for years and after so much price growth, remains to be seen.
Is NZ a low wage, low productivity economy where housing is a commodity for investors?
https://www.stuff.co.nz/national/pol...is-a-commodity