Non-banks winners as mainstream lenders tighten rules
Data from NZFSG shows that main bank mortgage volumes are down 16% from thier 2016 monthly average, second-tier banks such as The Co-Operative Bank, SBS and Sovereign are down 17% but non-bank volumes are up 21%.
Broker Bruce Patten, who is also deputy chairman of NZFSG, said banks were making it difficult to get deals across the line, particularly for lending to fund property developments. He said they were now only dealing with existing clients or those with perfect track records.
Non-bank lenders such as DBR and Cressida were stepping in to pick up a lot of that slack, he said. "But a lot of the time it's touch and go whether they've got the money for it."
Glen McLeod, of Edge Mortgages, said he would only put deals with non-bank lenders as a last resort because it was more expensive.
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