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Frustration over home loan processing

Mortgage advisers say their turnaround times continue to be much slower than direct home loan applications, leading to frustration across the industry.

Monday, October 5th 2020, 9:35AM 2 Comments

Several advisers told TMM Online that direct customers were getting preferential treatment. 

Krish Krishna of Mortgage Suite said there were "major hold ups" in getting home loans approved. 

He said banks were processing direct loans more quickly: "I am also aware of one case where someone got approved within three days by going direct to the branch.

"The problem to some extent is the banks' own doing. The broker hubs have taken control over all business applications as well in the case of ANZ, ASB and Westpac," Krishna added. 

Andy Phillipson of The Mortgage Shop also said there was a big discrepancy in processing times.

"I know of instances where a client got a home loan approved and the contract confirmed before we even got a response from the broker unit. I presented a loan application to one bank, and without a response within a week, the clients went direct to their own bank. They got a full approval within days and the loan was settled within a couple of weeks."

Phillipson is concerned that banks are staying away from non-standard deals.

"Either there is a concerted effort by the banks to reduce the broker-led business, or the lending decisions are governed so much now by a "paint-by-numbers" system that logical deals from advisers that do not fit the pigeon-holes are immediately tossed out."

Tags: home loans Lending mortgages

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Comments from our readers

On 5 October 2020 at 10:47 am perryb said:
Totally agree, just enquired about a loan sent to ANZ 14 days ago, no response as yet. Interesting that a client who didnt meet servicing by the bank calculator calculator(by a long way) went to local bank, approved in 40 minutes, beat that one.
One rule for them and one rule for brokers.
On 12 October 2020 at 10:43 pm two cents said:
Very few banks have mortgage advisors these days...or branches for that matter! Online preapproval may be fast but settling can be a harrowing experience with whoever answers the 0800 number that day.

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Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.19 2.59 2.99
ANZ 4.44 2.79 3.19 3.59
ANZ Special - 2.19 2.59 2.99
ASB Back My Build 1.79 - - -
ASB Bank 4.45 2.19 2.59 2.99
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▼2.19 2.55 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼2.79 3.15 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 1.95 1.85 2.35 2.45
Heretaunga Building Society 4.99 3.80 3.90 -
HSBC Premier 4.49 2.19 2.45 2.69
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 ▼2.15 2.35 ▲2.75
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.04 3.40 3.84
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.19 2.55 2.99
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.69 2.99 3.29
SBS Bank Special - 2.19 2.49 2.79
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▼1.99 - -
The Co-operative Bank - Owner Occ 4.40 ▼2.19 2.59 ▲2.99
The Co-operative Bank - Standard 4.40 ▼2.69 3.09 ▲3.49
TSB Bank 5.34 2.99 3.35 3.79
TSB Special 4.54 2.19 2.55 2.99
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼2.79 3.19 3.59
Lender Flt 1yr 2yr 3yr
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.19 2.59 2.99
Median 4.55 2.68 2.99 2.99

Last updated: 22 June 2021 9:57am

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