CCCFA changes not a complete panacea

He says the government’s changes could be seen as restoring the situation to how it was before, with the banks as experts in managing risk appropriately and ensuring customers get the right outcomes.

“Of course, unwinding everything that's been put in place probably isn't going to happen, ironically. Banks are still going to ask for more information than they used to from people applying for mortgages because they have invested in processes to do that, but the validation of the information will be more self-declared as opposed to intrusive spending questions and fine tooth-combing of bank statements. Banks will be a lot less anal, so process times should shorten,” Cunningham says. “The process of information gathering will continue but in a far more informal way.”

NZ Mortgages founder Nathan Miglani says it is great the government has made this move especially as it has only been in power for about six months.

“Changes were made by the previous government, which were appreciated, but the general rules and fundamentals stayed the same.”