Compliance will be the biggest challenge facing brokers throughout 2018 and the restrictions to foreign lending have taken a chunk out of the market, according to Auckland mortgage broker Nick Kotze.
“As we progress through 2018, I think the biggest challenge ahead for brokers is compliance,” says Kotze.” There’s undeniably more and more compliance coming into the market; there’s currently a royal commission in Australia within the banking sector, and that’s inevitably going to flow through into the New Zealand market at some point in time. The biggest challenge will be staying on top of all the incoming compliance requirements.”
Kotze also stated that the ban on foreign ownership of property has greatly impacted the property space.
“I can’t currently get funding for non-residents,” he told NZ Adviser. “They can technically purchase, but only with cash. This restriction to foreign lending has been a blow for at least 12 months now- it’s made a big difference and removed a section of the market out of the auction rooms, and out of the property market in general.”
Nonetheless, Kotze states that the property market is becoming better for purchasers. According to him, the LVR restrictions have helped first-time buyers by providing some extra funding options. Loan Market is still seeing them coming through the doors, purchasing and getting pre approval- so in that sense, the restrictions have been a helpful development.
On business generation and leads, Kotze says it’s all about efficiency and doing the job right the first time around.
“Most of my business is derived from word of mouth. If you do what’s in the client’s best interest and you do it efficiently, then people tend to talk and refer on friends and family. Over time, you see enough people to spread the word.”