They do not expect much difference between alerts level 2 and 1
As New Zealand moves to alert level 1 due to zero active COVID-19 cases, businesses return to normality – making mortgage advisers “cautiously optimistic.”
Advisers believe that alert level 1 and the lack of active cases will be beneficial for businesses across the country, with many workers already back in the office since alert level 2 lockdown.
Geoff Bawden, the director of Q Group, expects a slowdown over the next two months as businesses and workers continue to adjust post-lockdown.
“Obviously, everyone is starting from a low base because very little happened during the lockdown. That means it will take time for advisers' cash flow to kick in. [It will be] probably another six to eight weeks for most advisers to get upfront rolling,” Bawden said, as reported by Good Returns.
Read more: Advisers call for relaxed LVR limits
Craig Pope, the director and owner of Pope & Co Mortgages, does not expect much difference between alerts level 2 and 1. However, the biggest hurdle in alert level 1 would be managing client expectations as banks tighten credit conditions and servicing tests.
“We have already been extremely busy since alert level three. Expectations are a little higher than the reality on a few fronts,” Pope told Good Returns.
“[Clients] are underestimating how long things are taking and the extra paperwork required around income and job security, and banks are taking a cautious approach regardless of recent LVR restrictions easing.”
CoreLogic senior property economist Kelvin Davidson aired the same sentiments as “activity has been functioning pretty much normally in level 2.”
“It's great to get to level one though, in the sense that it might just help shorten the recession a little bit, or make it shallower, which is good for property,” he continued.
