Turnaround times slow to improve

Bruce Patten

The Government's reforms to curb investor lending, such as an extended bright-line test and the planned removal of interest deductibility, have begun to slow the mortgage market, with lending down $2 billion from March to April, according to RBNZ data.

But while activity has eased, brokers say the turnaround times remain a major problem for the clients.

NZFSG's Bruce Patten said ASB's turnarounds were down to "about a week", though turnarounds for its new builds product "had slipped". He said BNZ had brought its turnaround times "back under control" in recent weeks.

"It shows you that their volumes are down, so it's making life easier," Patten said. "We're now on a more level playing field with those going direct to their bank.