tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, February 26th, 6:34PM

Mortgages

Mortgage Rates Daily Commentary
Monday 26 February 2024  Add your comment
[OCR forecasts] RBNZ piloting a plane without knowing how hot the engine is running

Economists are divided on whether the Reserve Bank will lift the OCR or leave it at 5.5% at its review on Wednesday. [READ ON]

rss
Latest Headlines

Loans for people banks won't look at

A Nelson-based mortgage broker and two finance companies are the latest to team up to offer home loans to people the banks won’t look at.

Wednesday, July 18th 2001, 3:28PM

by Jenny Ruth

Eagle-Pacific Home Loans is offering the "non-conforming" product through the 40 Mortgage Link offices with Eagle Finance, also based in Nelson, providing the back-office administration and the Palmerston North-based Speirs Group providing the funding.

The group won’t say how much demand they’re finding, but Eagle Finance managing directorJohn Jannetto says Pacific Home Loans is lending between $400 million and $600 million a year through the Mortgage Link network.

"We think there’s probably market demand, just through that network, of somewhere between $50 million and $70 million a year" for the non-conforming product. Jannetto says.

Under the non-conforming product, Eagle Pacific will lend up to 70% of a property’s value at a fixed interest rate for three years only. It has two classes of borrowers, the B class which is charged 10.5% interest and the more risky C class which is charged 11.5% interest.

The idea is that at the end of the three years, if there are no problems, the borrower will have established a good enough credit record to be able to borrow from the banks again.

The kind of people the product is aimed at are the recently self employed or others who haven’t built up a sufficient track record to satisfy banks, those who were previously bankrupt or who have other "credit issues."

David Smart, funding general manger at Speirs, says the potential borrower is "not necessarily a credit impaired person."

For example, a young professional couple returning from their OE might both have well paying jobs but lack a credit history.

The group would also consider someone bankrupted eight years ago but who has a good credit history over the last four years or so. "But if you were bankrupted last week and you didn’t have a job you wouldn’t apply," Smart says.

Jannetto says banks are becoming more and more restrictive and won’t look at people with even minor credit issues. "In some instances, they’re really telling people, `we don’t want your business.’ There are probably more people who have negative credit records than those who have positive records," he says.

So how did the three companies involved get together? Jannetto says he and Mortgage Link founder Roger Poulter met at the gym. Poulter became acquainted with Smart when the latter was working for the Public Trust and Mortgage Link was marketing Public Trust home loans.

« Home affordability improves againHousing figures a mixed bag »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.45 7.05 6.85
ANZ 8.64 7.99 7.49 7.35
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.39 6.89 6.75
ASB Bank 8.64 7.39 6.89 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼7.29 ▼6.85 ▼6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.89 ▼7.45 ▼7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.15 - -
Co-operative Bank - Owner Occ 8.40 7.35 6.89 6.75
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.85 7.39 7.25
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.85 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.59 7.29
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.35 7.89 7.65
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.35 6.89 6.75
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.90 7.39 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.95 7.45 7.29
SBS Bank Special - 7.45 6.95 6.79
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 7.05 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.19 7.55 7.55
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.39 6.75 6.75
Unity 8.64 6.99 6.85 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.45 7.37 6.77

Last updated: 26 February 2024 9:10am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com