by The Landlord
A few years ago, Auckland-based mortgage broking firm Financial Pictures had a number of clients involved in selling wrap mortgages, a type of rent-to-buy scheme. But in the last few years, more and more of the banks have become less and less willing to lend on such schemes and Financial Pictures has been losing clients, says the firm’s Daniel Feller. "It’s almost impossible to do wraps now," Feller says. He says he doesn’t know why, but it’s probably because of some negative publicity. "Two or three years ago, no bank would have had an issue with it." But Feller says there’s little difference between a wrap mortgage and getting near 100% finance to buy a car, which is commonly available. In fact, lending on a car is more risky because cars depreciate in ways that houses don’t.« Kiwis teeter atop debt mountain | Lianne Dalziel: Address to Master Builders » |
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