It is struggling to process home loans and mortgage deferral requests
ANZ has employed more people in its broker unit as it faces a growing backlog in home loan processing.
ANZ, along with other banks in New Zealand, has been struggling to process home loans and mortgage deferral requests. As a result, the bank has expanded its broker unit and even outsourced some processing to branch staff.
The bank's decision comes amid an influx of mortgage deferral requests, extensions to mortgage holidays due later this month, and new home loan applications.
Read more: Investors are unlikely to pick up a property bargain – survey
Advisers reported that ANZ and other lenders are reviewing home loans more carefully and focusing on borrowers' future financial security amid the COVID-19 crisis, resulting in processing delays.
“This causes all sorts of issues for those buying, and several are taking huge risks by going unconditional without an unconditional offer as agents are insisting on five-day finance clauses, which in most cases cannot be met,” an adviser told Good Returns.
A spokesman for ANZ said the bank is readjusting its broker processing team to address the increase in demand.
“The number of staff we have managing applications from brokers changes depending on demand. There's currently strong demand through our broker channel, and some of the conversations are more complex than usual due to COVID. We're finding some customers' circumstances have changed, and we're requiring more information to make an assessment,” the spokesman said.
