News in brief: Auckland house price correction risks in fundraising warns Squirrel

by NZ Adviser16 Mar 2016
Auckland house price correction risks in fundraising: Squirrel
Mortgage broker and P2P lender Squirrel Group warns an Auckland housing market correction could significantly slow sales, posing a risk to its $4.97 million private equity crowdfunding offer in progress, BusinessDesk reports.   

Squirrel Mortgages is aiming to arrange more than $1 billion of residential mortgages annually by 2017, up from the $800 million forecast for the March 2016 financial year. 

But if there is a housing correction, it has modelled a 40% reduction ($400 million) in forecast volumes and a 25% drop in settlements per adviser for the 2017 financial year.

SBS Bank rate changes 
SBS Bank announced it has changed its standard floating home loan rate to 5.59% and its 5 year special rate to 4.99%, effective 16 March 2016.

Conditions apply to the standard rate including being available only for Welcome Home Loans and Residential lending with either a minimum of 20% equity or where QBE lenders mortgage insurance is already in place. Rates are available on request for Residential Lending where equity is below 20%.

SBS Bank will also reduce its Rural and Commercial floating lending rates by 15bps, effective 16 March 2016.

Global Financial Services celebrates its 17th Anniversary
Auckland brokerage Global Financial Services (GFS) celebrated its 17th year in operation this month, being founded in March 1999. The award-winning team has won over 29 accolades including top and best financial adviser awards in the last 8 years. 

GFS has arranged approx. $3.8 billion in mortgages and $2.5 billion in insurance cover and the team is now 19 strong and plans to continue to grow. 

GFS awards include Westpac’s Auckland Business Award for Excellence in Customer Service Delivery – Auckland South 2015; being ranked as New Zealand’s top mortgage adviser for ANZ Bank for four years running; and ASB Bank’s Number One Broker for New Money Advanced Award for two years running.

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