Mortgage application turnaround times have increased to around two weeks due to a rise in housing market activity and lower interest rates. Banks are struggling to keep up because they haven't replaced staff who left over the past two years.
Experts suggest several improvements, including more frequent updates on turnaround times and pricing, read-only loan access for advisers, and a unified servicing channel to streamline processes. Some bank scan process applications in under a week, but it's not the norm, making it frustrating for both advisers and clients.
https://www.goodreturns.co.nz/article/976524203/turnaround-times-for-mortgage-applications-spin-out-again.html
Whangarei-based Key Mortgages director Jeremy Andrews says some banks can turn around applications in less than a week, but it is not the norm.
“Our ability to escalate an application and get a response within a day or two is becoming harder to do. Some banks say, ‘no’, while others will say ‘maybe just this once, but you can’t keep on doing it’.”
Andrews says it is not only frustrating for advisers but also clients. “Some get impatient, blame the adviser, go to another and don’t understand they have to start again, slowing down the process to end up with the same result.”
Key Mortgages is recommending clients use a four week finance clause in their sale and purchase agreements, particularly if they are a low deposit borrower and need a property valuation. If a client has good equity and doesn’t need a valuation, then two weeks is usually sufficient, Andrews says.
“It is still not acceptable, though.”
Key Mortgages comments with Tony Alexander and TMM Online the prospect of whether rising interest rates and global tensions are prompting a more cautious approach from buyers. Is mortgage demand softening as households take time to reassess affordability and market conditions?
NZ Banks are offering cash incentives to retain existing home loan clients. Jeremy of Key Mortgages summarizes with NZ Herald, whether to switch or stay depends on factors like break fees, equity, and overall costs. We can help and negotiate with your current bank to find which is the smarter move.
Key Mortgages recently joined Ryan Bridge on Newstalk ZB, to discuss the recent jump in mortgage rates and what it means for Kiwi borrowers.
Key Mortgages shares details with Good Returns how expanded low-deposit lending options may help eligible first home buyers enter the market sooner and with better pricing
As featured in Stuff, buying property with friends or family can improve affordability, but clear agreements and proper structure are essential.
Banks and Mortgages advisers discuss with New Zealand Herald, why home loan approvals may take longer as lenders apply more detailed affordability checks and tighter financial assessments.
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