Revealed: Mortgage advisers “crazy busy” post lockdown

by Roxanne Libatique08 Jul 2020

Mortgage advisers have become busy this winter after the New Zealand property market opened up, enticing investors to climb the property ladder once again.

Kris Pedersen, the director of Kris Pedersen Mortgages, confirmed that the company is doing well, and they are “crazy busy” at the moment.

“Originally, I thought it would just be pre-approvals for investors wanting to get ready for bargains, but we are seeing properties purchased and clients missing out in multi-offer situations. I think the interest rates may be a partial driver,” Pedersen said, as reported by Landlords.

Read more: Housing market reveals signs of confidence post COVID

Joel Oliver, the managing director of SuperCity Mortgages, added: “I have financed everything from baches to investment properties.”

“Common is an owner-occupied buying a new home and renting out the existing home, as the rates are so cheap and rent demand still high. The house purchase bracket of $1.5 million to $2.5 million is strong, usually someone's second or third home.”

Jeff Royle, the chief executive of iLender, said they have been busy since the lockdown.

“Nothing has changed really. We still have a housing shortage, the demand is still high, many Kiwis overseas buying back home, and rates on the floor with no sign of rising anytime soon,” Royle told Landlords.

Read more: Advisers remain cautious about the lending market

The advisers' comments bring to light the joint report by the Real Estate Institute of New Zealand (REINZ) and independent economist Tony Alexander, which revealed that one in four agents noticed more investors in the market in June, up from a net 16% in May.

“[The figure] was unsurprising, considering the low level of interest rates which investors in bank deposits are currently receiving and the hopes many undoubtedly have to purchase something more cheaply than might have been the case four months ago,” Alexander said, as reported by Landlords.

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