Who has the best bank mortgage?
Who has the best bank mortgage is an important question when you are looking to buy a home or refinance a current home, but it may not be a bank at all, but rather a Non-Bank lender who are who are not banks, more defined, not a registered trading bank.
The leading trading banks have the majority of mortgage lending in New Zealand, and also they give us a sense of security when it comes to lending. We can walk into their offices, talk face to face with staff, see their fleet vehicles driving around and of course we see all the warm fuzzy ads that make us feel like we’re part of the family.
We need banks because they provide us with the services we need in our daily lives, but my point is that doesn’t rule out a non-bank just because they don’t give you the warm fuzzies.
Do they offer the best bank mortgage?
Depends on what you are looking for, but non-banks give consumers more choices. I would go so far to say they have made banks more flexible in some areas of lending.
They offer advantages such as they don’t have to adhere to the strict Reserve Bank rules such as limiting the Loan to Valuation Ratios, especially if you’re a property investor, or maximum exposure to a particular type of lending category such as property investors.
Non-bank lenders don’t require you to move your banking, which involves automatic payments, direct debits, cards etc. It’s a pain, no matter how they dress it. They can also be competitive on some rates (not all), but some of them have niche lending that you may need.
Who are the non-bank lenders?
Non-banks are mortgage trusts, credit unions and finance companies and they have made substantial inroads into the New Zealand mortgage market.
Non-bank mortgage lending jumped from $1.61 Billion in 2016 to $2.5 Billion in 2017, so they are serious players and alternatives to bank lending.
How do I get access to non-bank lending?
Non-bank mortgage lenders work mostly via the mortgage adviser channel where mortgage recommendations are made based on merit, and not one lender fits all. Contact us to talk about your bank and non-bank options.