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: Sunday, April 14th, 8:46PM

Mortgages

rss
Latest Headlines

Non-banks see surge in demand

Non-bank lenders have noted a sharp increase in demand for home loan products as banks maintain tight restrictions during the Covid-19 outbreak. 

Wednesday, April 29th 2020, 8:39AM

Luke Jackson, Resimac

Second tier lenders say home loan customers are searching for alternatives as banks avoid taking on new borrowers or re-financings during the global pandemic.

It comes as non-banks reduce their interest rates closer in line with traditional banks. Non-banks see an opportunity to take further market share in the current crisis. 

Resimac claims a 30% increase in enquiry levels since Easter.

Resimac head of New Zealand Luke Jackson said banks were focused on processing hardship requests and had reneged on customer pre-approvals. 

"We are hearing from our mortgage adviser network that banks are not focussing on new business and are preoccupied with processing Covid-19 hardship applications. As a result more borrowers and advisers are turning to non-banks," he said in a statement. 

Jackson believes non-banks, with ever-lower rates, are becoming "a true alternative to trading banks". 

Aaron Milburn, head of New Zealand at Pepper Money, said enquiries held up well in the first weeks of the lockdown, before they slowed in line with market conditions. He told TMM Online that the firm has noted an increase in demand since the lifting of level four restrictions, and they "expect that to continue".

Milburn added: "An interesting change we noted during the lockdown was that customers seeking solutions engaged directly with us, which we referred on to accredited advisers in their local area."

Stephen Massey, head of sales at Avanti, also noted a "very steady" period of demand through the level four lockdown.

Massey added: "Avanti has been pleased with the positive support and desire of advisers to assist both new and existing customers during this period. Our team have remained very busy while working from home and we are hopeful of further market demand now as we enter level three. It seems evident that there will be strong demand for the non-bank sector and advisers to help more NZ families in the coming months."

Meanwhile, peer-to-peer lenders, including Southern Cross Partners, have also noted an uptick in in-bound enquiries in recent weeks, as borrowers seek non-traditional financing. 

The Covid-crisis could accelerate the trend towards non-bank lenders. According to advisory firm KPMG, non-banks recorded a 9.32% increase in gross lending last year.

 

 

Tags: Avanti Lending non-bank lenders Pepper Money RESIMAC Southern Cross Southern Cross Partners

« NZFSG CEO's predictions for a post-Covid-19 marketLending strong – before lockdown »

Special Offers

Comments from our readers

No comments yet

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
Most Commented On
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 7.24 ▼6.75 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 ▼6.75 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 - 7.24 6.79 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 7.84 7.39 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 - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
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 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 8 April 2024 9:21am

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