RESIMAC Home Loans general manager Adrienne Church says in the constantly changing lending landscape, it is ‘vital’ that advisers capitalise on every opportunity that exists in the market.
Church told NZ Adviser
they are seeing more growth in the investment lending space as the banks tighten their lending criteria.
“With the banks classifying lending for investment purposes and restricting the LVR's accordingly this is creating more opportunity for us,” says Church.
“Specifically where borrowers want to leverage their owner occupied property for the investment deposit, it doesn't matter whether it's cash out or the property is used as cross collateral, they still classify it as investment.”
The non-bank is seeing more interest from brokers looking to RESIMAC for 80% LVR loans or higher.
“We still do up to 90% LVR on a case by case basis but we need to ensure we have a balanced portfolio so we tend to only do this for our supporters that also give us lower LVR business.
“With so much change going on around us with both self-regulation from the banks and with the RBNZ intervention this is creating great opportunities for non-bank lenders in the New Zealand market,” Church told NZ Adviser
“The market conditions for non-bank lenders in the New Zealand market have never been better with the main banks restricting lending and providing opportunities for borrowers seeking mortgage solutions.”
Some of the solutions RESIMAC provide to borrowers include:
• Investors looking for high LVR’s; RESIMAC still do up to 80% LVR’s for all borrowers on their Owner Occupied Property or Investment – in some cases they can still go above 80% LVR
• Offshore Investors; RESIMAC consider Australians and New Zealanders living in Australia as standard borrowers and they consider Australians and New Zealanders living overseas purchasing investment properties as well
• Self Employed borrowers needing to borrow against their property to pay tax
• Self Employed borrowers with short trading history needing funds to assist with growth
• A life event borrower, for example a recently separated or divorce borrower looking for a fresh start
• A borrower who is looking for cash-out for investment purposes – or to consolidate debts with potentially a patchy repayment history
• Non-resident borrowers; RESIMAC still can consider non-resident borrowers on a case by case basis
RESIMAC’s Church says the non-bank is focused on creating opportunities and solutions to help more borrowers more of the time, and to support the third party advisor channel.