Non-bank lending soars
Bank restrictions have led to a flow of prime customers to non-bank lenders, which are offering lower rates than ever.
Resimac's head of New Zealand Luke Jackson said the company "was perfectly placed to service the market", and had grown its book by nearly 30%.
"We haven’t had to slow down on lending volume or make any changes to credit policies this year," he said. "On an annualised basis, we’re running close to a 30% book growth, and we announced earlier this month that we’ve had a record number of settlements over the last six months."
"With banks being obligated to raise capital buffers, they’re continuing to focus on simple, low-risk transactions," Jackson added. "Advisers have realised that in order to get transactions happening, they need to use a wider range of funders, and thus they’re submitting more deals to non-banks. Any clients that need a bit of pragmatic thinking, or who don’t fit the automatic decision box of banks, are coming to non-banks."
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