Business

Turnaround time takes time to improve

According to advisors, the slight decline in mortgage lending activity in recent months has not yet led to a significant improvement in turnaround time.

Monday, June 14, 2021 9:44 AM

Bruce Patten

Government reforms to curb investor lending, such as extended emission tests and the elimination of planned interest deductions, have begun to slow down the mortgage market. Lending $ 2 billion from March to April, According to RBNZ data.

However, although activity has eased, brokers say that time is still a major issue for clients.

Bruce Patten of NZFSG said the ASB turnaround was shortened to “about a week”, but the turnaround of the new build product was “delayed”. He said the BNZ has “returned control” of its turnaround time in recent weeks.

“It makes life easier because it shows you that their volume is declining,” Patten said. “We are now in a more equal competition with those who go directly to the bank.

“To be honest, everyone is relieved that the volume is down,” he added. “But the market is still much higher than last year in terms of reconciliation.”

Sarah Bloxham of Lets Talk Mortgages deals with many first homebuyers and new homes, and the ASB era was one of the best on the market in about 4-5 days, with BNZ not too late. I said there is.

Bloxham said the corner of the market was still “busy” and reported that it was having a “long, long day.”

However, not all advisors feel a slight improvement.

Glen McLeod of Edge Mortgages said nine days remained standard and the downturn in new applications didn’t result in better turnarounds.

“It’s sad that we don’t get better service from our lenders,” he said. “I know some of the reasons are that some advisors are sending multiple applications to the lender. This is probably a cause and effect issue. It’s a bit of a wait for nine days to get a response. It’s frustrating. “

tag: lending Housing loan Time required

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Turnaround time takes time to improve

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