Simply Mortgages

Over the past year I have been discussing the decline of the Non-Bank sector and what it means to borrowers.

O have always been outspoken about the fact that there is not enough competition in the NZ market as it was.

The non-bank sector was active in product innovation, competitive pricing and providing real choices.

It also allowed those with more than one property to be able to diversify their funding sources. If you had say, six rental properties you could have six individual funders.

This is no longer the case – borrowers are now dependent on a small number of bank funders, which does not allow them to truly diversify their borrowing sources.

The biggest area that the non-bank lenders really helped though was in the area where the banks are too harsh when it comes to lending criteria. The non-bank lenders provided options to people who had been declined by the big banks.

We Have Funds to Lend

The finance company sector has been considerable reduced over the past 24 months but we still have lenders who can help.

Our funders are happy to look at bridging and short term first mortgage residential proposals and they will go up to a loan to valuation ratio of 70%.

They are also still looking at “Lo Doc” proposals.

So if you have been knocked back by the big banks why not drop us a line and let us see what we can do.

Recently we met a couple purchasing their first home together at an advantageous purchase price from family.

They required 100% funding of the purchase price, which was possible due to the equity in the property being gifted.

Both husband and wife were self employed and had a few defaults on their credit report.

Debt servicing appeared fine based upon self-declared incomes although financials provided indicated the income declaration was reasonable.

The successful loan was approved of just over  $190,000 at 10.35% pa for a 30 year term.

Do you know anyone in a similar situation?

Let us know, we might be able to help.