Source: Finance and Mortgage Advisers Association of New Zealand (FAMNZ)
The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) says while data from the New Zealand Banking Association (NZBA) showed that first-time buyers accounted for a quarter of all new home loans in the first half of this year, it should have been higher.
FAMNZ managing director Peter White AM said with falling interest rates and lower house prices, this is the best time to enter the property market.
However he said too many younger people falsely believe they can’t qualify for a home loan, and others give up after being refused a loan by a major bank.
“There are far too many naysayers who preach doom and gloom and they are in fact destroying dreams,” Mr White said.
“Mortgage advisers deal with consumers every week who don’t believe they can qualify for a loan or refinance, only to find they can,” he said.
“They just haven’t received the right advice.”
He said consumers should remember that banks can only offer their own products and each has different lending criteria, “so if you are rejected by a bank, it’s not necessarily the end of the road and it doesn’t always mean you can’t afford it.”
His advice to first home buyers – even before they apply for a loan – is to reach out to a mortgage adviser and learn about the process and the options available.
“Everyone is in a different place in life, and each borrower has different needs.
“If you walk into a bank branch and they can’t help you because their product isn’t suitable, they aren’t going to send you to the lender down the road even if they know that lender can help you.
“Whereas a mortgage adviser has so many options like second-tier banks and non-bank lenders, and is obligated to help you find the product most suitable to your specific needs.”
Mr White said these are the reasons more Kiwis are turning to mortgage advisers than ever before.
“It is frustrating for many who are paying rent when they realise they could pay the same or less for a mortgage, yet they think they can’t qualify.
“Of course not everyone can, but it’s worth exploring options.”
