The answer really depends on two things: your personal circumstances and the ever changing offerings of the banks.
There are a few components to a bank loan which we consider when advising on the best loan for a client:
- The bank’s credit rules and how suitable they are;
- The suitability of the loan product for helping our client achieve their goals;
- Good pricing;
- A level of service which is effective for our client.
Our work includes getting the best match for a client and bank quickly.
How do we do it?
It’s simple, we keep focused on attaining this perfect match.
By working with many lenders on a regular basis we are knowledgeable about how they work and where they sit currently in terms of their appetite.
Basically if a lender’s books are getting full, their pricing becomes less competitive. Also past lessons from lending can have an effect on the future rules. The banks that lent a lot on apartments, pre 2008 (GFC), nursed their wounds for many future years after, by requiring bigger deposits for apartments.
The Banks we work with
Westpac – First to introduce direct processing from brokers, allowing for quicker response times for simple cases, nice construction loans, good for apartments, first and only to have a 30 year interest only option.
ASB – In my opinion still has one of the best IT systems, able to quickly deliver documents and offers easy re fix solutions – email only. Good construction loans.
BNZ – New to the broker scene, still improving their systems, sharp on pricing currently, good solutions for business owners.
ANZ – Good lending criteria, hungry for growth, good for business lending.
Co-op Bank – interesting concept in that they are a co-operative, every client also becomes a shareholder and is entitled to a cash rebate at the end of the year, usually approx. $100 – $350.
SBS Bank – Have some interesting products as well, came out swinging with pricing lately with a rate of 3.99% for 1 year.
Heartland Bank – Considers deals that fall outside the square, can look at unique solutions for business deals as well, great products for seniors, reverse equity – no repayments and guaranteed occupancy for life.
The Non-Banks we work with
Resimac – Full 30 year term for clients with challenging credit histories, will refinance mortgages in arrears.
Liberty – Also offers a longer term solution for clients with a colourful history and have been around since before the last market crash.
Sovereign – Basically just ASB with a different label, no fees for revolving credit home loans.
DBR – Short term lending against houses with first mortgages of $100,000 to $2,000,000 can be done easily without looking at income or credit issues – must have an exit plan and equity.
Gubb and Hardy – Short term solutions outside the box, quite cost effective for the second tier industry.
Finance point – Flexible funding for smaller lots up to $50k on second mortgage or caveat.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
