Source: Finance and Mortgage Advisers Association of New Zealand (FAMNZ)
New Zealanders are being urged not to abandon their dreams of home ownership, despite a survey* revealing 72 percent of non-homeowners believe buying a property is beyond their reach.
Finance and Mortgage Advisers Association of New Zealand (FAMNZ) managing director Peter White AM says while the results of the survey by market research agency Perceptive aren’t surprising, many would-be owners have more options than they realise.
Mr White said research by FAMNZ revealed that many Kiwis directly approach a bank to enquire about finance, and when rejected, falsely believe there are no other options.
“Banks provide great facilities and products but the misconception that a bank is the sole source of lending is preventing many aspiring homeowners from realising their dreams,” he said.
“There have been many cases when an adviser has arranged financing or refinancing after a bank has said no,” Mr White continued.
“There are other lenders outside the traditional banks with different lending criteria, so I would urge aspiring homeowners to see a mortgage adviser first, but also if they’re knocked back by a bank.”
He said mortgage advisers also had access to non-bank lenders, and consider each borrower’s unique situation, taking this into account to find the most suitable loan.
Mr White said each borrower has different needs and often a bank product may not be the best fit, but this doesn’t mean there is no path to home ownership.
“For example, self-employed people who can’t show a regular wage may not fit the criteria for some traditional bank products, so a mortgage adviser may in some situations recommend a non-bank lender as the most suitable option.
“Many of these non-bank lenders are not accessible to the public and only available through a mortgage adviser.”
He said as good as many bank products are, “a bank can only offer you the products they have, and these often don’t consider the unique financial circumstances of the borrower.”
With interest rates predicted to continue their downward trajectory, Mr White urged those who want to enter the market or refinance, “not to give up hope but to ask a mortgage adviser to provide options.”
