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: Thursday, March 28th, 10:13PM

Mortgages

rss
Latest Headlines

CCCFA cuts mortgage acceptances by 23%

New information suggests the Credit Contracts and Consumer Finance Act (CCCFA) is already biting sharply into people's ability to get a mortgage.

Friday, January 14th 2022, 2:15PM 2 Comments

by Eric Frykberg

It suggests a 23% drop in the number of people getting a mortgage after the Act came into force. Consumer finance applications such as credit cards were also hit.

The figures come from the credit reporting company Centrix.

They show, in summary, one in five mortgage loan approvals have been hit by the new CCCFA regulations.

In other words, many consumers who were previously approved are no longer eligible under the CCCFA changes.

Centrix stresses it is early days, and further information will come in as the subject is researched deeper.

But it says in the pre CCCFA-era, monthly mortgage commitments were on average, $8.3 billion per month.

Post-CCCFA, the number was down to $6.4 billion, which is a 23% drop.

Centrix stresses that these figures are indicative at this stage and might change slightly in the coming weeks as more data is received.

But it says a clear picture of thwarted customers is starting to reveal itself.

The CCCFA has been widely criticised as a broad brush approach to specific and often quite rare problems, and the managing director of Centrix, Keith McLaughlin agrees.

“Back in January 2020, arrears on mortgages were 1/5% of the portfolio. They are now down to about 0.9%,” he said.

“I think responsible lending and comprehensive credit reporting have played a major role in dropping the arrears across major mortgage portfolios, to the extent that I don't think it is a major issue.

“The introduction of this legislation is affecting more people than just the vulnerable.”

As a credit reporting agency, Centrix might normally be expected to support legislation that led to fewer bad debts.

McLaughlin said even the 0.9% of arrears needed to be dealt with, but a sledgehammer approach that covered the entire market was not the right solution.

« Non-bank deposit takers fail to elude latest Govt crackdownMinister orders enquiry into CCCFA »

Special Offers

Comments from our readers

On 14 January 2022 at 2:44 pm Tang Shing-bor said:
What a joke. I work off the principal the government is fundamentally incompetent and screw up everything they touch. I'm not usually disappointed. Let's see how this plays out.
On 14 January 2022 at 8:48 pm w k said:
will any heads roll for the stuffed up?

advisers got no mercy, named and punished including being struck off.

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 6.79 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 6.79 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 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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