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Turnaround times deteriorate: survey

Turnaround times "seem to have got worse" following Covid-19, according to a new survey conducted by economist Tony Alexander.

Thursday, July 23rd 2020, 1:59PM

Alexander's monthly review of the mortgage adviser market finds advisers remain frustrated by processing at the major lenders, with banks under staffing strain. 

"Banks are extremely slow to process requests and turnaround times seem to have got worse," Alexander notes, echoing reports from the industry to TMM Online in recent months.

The issue seems to be persistent. One adviser told TMM Online that turnarounds with ANZ were taking "ten days", leading to frustration among clients.

The survey notes a concern over tightening lending criteria, but hopes from the industry that "very mild easing" may be appearing. 

ASB was the first big four bank in months to ease servicing criteria last week, as it announced a series of rate cuts for high LVR borrowers

Elsewhere in the survey, a net 45% of advisers said first home buyers were more active. That was down from a net 79% in June, but still a high figure, Alexander said, "suggesting that the rush of first home buyers hoping to take advantage of low interest rates (and perhaps some stressed vendors) is still quite strong".

Meanwhile, a net 23% of mortgage advisers saw more investors in the market looking for advice, down from a net 51% in June. Alexander attributed this to a "complete absence of any story of properties selling at heavily discounted prices".

The fall in mortgage rates has not led to a wave of refinancings, as banks remain conservative on their internal limits. 

According to the survey, only a net 12% of advisers saw more refinancing enquiries, compared with a net 29% last month. 

A net 53% of advisers said finance availability had tightened up, compared to a net 60% in June. 

The Reserve Bank's biannual credit conditions survey revealed banks were hesitant to lend and concerned about "income security" following the pandemic.

Tags: Lending mortgages Tony Alexander

« OCR hold call is straightforward: BNZHome lending jumps in June »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 ▼2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼3.15 3.29 ▼3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 5.50 - - -
Lender Flt 1yr 2yr 3yr
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 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
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 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.55 2.65 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac ▼3.39 3.45 ▼2.99 ▼3.35
SBS Bank 4.54 3.09 3.19 3.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.59 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.99
The Co-operative Bank - Standard 4.40 3.05 3.19 3.49
TSB Bank 5.34 3.35 3.49 3.79
TSB Special 4.54 2.55 2.69 2.99
Wairarapa Building Society 4.99 3.65 3.69 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.12 3.19 3.17

Last updated: 4 August 2020 11:33am

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