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, July 6th, 10:28AM

Mortgages

rss
Latest Headlines

Pre-approvals hit by Covid-19

Banks are withdrawing pre-approvals for home loans amid the Covid-19 outbreak, as credit conditions continue to tighten. 

Monday, April 20th 2020, 8:11AM 1 Comment

Advisers across the industry have reported that major banks are taking a hardline stance on pre-approved home loans as the Covid-19 outbreak continues. 

Banks have started to reject pre-approvals for new loans, leaving some home buyers in limbo as they attempt to complete property purchases. 

One adviser, who asked not to be named, said borrowers were being left "high and dry" by banks. He said the clampdown on new loans was "not in the spirit of what we think the RBNZ is trying to manage".

The adviser added: "Lenders realise they have a tiger by the tail in terms of existing business but seem to be closing the shutters wherever they can in terms of new risk, which the RBNZ clearly doesn’t want. Such behaviour is to going to be yet another head wind for the economy."

TMM Online has viewed several examples of pre-approvals being cancelled by the major banks. One customer with an LVR of less than 75% and confirmation their employment status had not been affected by Covid-19 was rejected by BNZ. 

Meanwhile, some ANZ borrowers have not been able to proceed with their settlements as approvals have expired during the lockdown. 

To extend pre-approvals, ANZ has asked customers for written confirmation they have not been impacted by Covid-19, verification of their income from the current month, and confirmation their deposit has not been reduced.

The pre-approval headaches come as banks tighten up credit availability for new borrowers. Advisers report the banks have also cut down on cash-back offers for new customers in recent weeks. 

 

Tags: ANZ BNZ Lending

« Cuts to cash-back offersLong lockdown for advisers »

Special Offers

Comments from our readers

On 20 April 2020 at 9:44 am Veteran Charles said:
There may be a bit more work handling things case by case but I haven't found that banks are going butternuts across the board. We are still seeing good cash contributions from ANZ and no-one on our books has been left high and dry, so to speak. However we have only a small sample, mostly ANZ, and I am not saying that the article is misleading or incorrect as such.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 3.85
ANZ Special - 2.65 2.75 3.35
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 ▼3.19 ▼3.49
SBS Bank Special - 2.79 ▼2.69 ▼2.99
The Co-operative Bank - Owner Occ 4.40 2.79 2.79 3.39
The Co-operative Bank - Standard 4.40 3.29 3.29 3.89
TSB Bank 5.34 3.59 3.49 3.79
TSB Special 4.54 ▼2.65 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.65 2.69 2.79
Median 4.55 3.22 3.22 3.44

Last updated: 3 July 2020 8:15am

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