There are now signs of increased confidence returning to the New Zealand market, with the larger cities like Auckland and Wellington and provincial centres like Tauranga, Hamilton and New Plymouth showing growth in the real estate sales. This though, could be still be described as patchy, with rural, holiday homes or lifestyle properties still a little weak. We are still finding though that the Banks' are very much entrenched in conservative no risk credit policy to protect themselves from any further bad debts. Though to give them some credit they have been pretty aggressive with low rates and incentives to assist first home buyers, with some being more adventurous with low deposit home loans, whilst others have shut up shop! There is now an increasing need for Non Bank or Private lenders who will assist those clients with either residential or commercial non bank funding when their bank says NO. The significant interest in looking for alternative means of funding, outside the mainstream Banks, lead to the introduction of an exciting new website www.nonbank.co.nz, giving New Zealander's a better understanding of alternative non bank lenders in the market.
Now as a further step forward to help clients with Non Bank loans we have also launched www.asecondmortgage.co.nz helping residential home owners and investors plus commercial clients access additional funds, without losing their bank funding at low rates.
Whilst the Banks' policy may be considered a wise move, it has had a serious impact, firstly on the growth of new business or property ventures such as, new home builds and subdivision development, and secondly with the person who needs a hand consolidating debt, a loan repayment holiday, bridging finance or some breathing space to allow for the sale of a property. You will hear on the news that applications for building consents are down and that there is a shortgage of homes. Some of this is caused by builders being unable to find funding for "spec" homes.
We are working with a number of Non Bank lenders, some who specifically target residential and commercial build projects, who operate in the space outside where their normal Bank will help them. Too often when the bank says "NO" we are seeing clients just give up, or obtaining funding with horrendous rates and fees. We believe, based on feedback from our clients, that we have a great variety of lenders and will always try and better any any loan offer refer Non Bank Construction.
Often we can direct a client to a Non Bank, Private lender or Finance Company with interest rates as low as 6.79% pa and saving you in excess of 4% in interest costs and fees compared to some other Non Bank Lenders or Brokers. On a $300,000 loan this would be in excess of $12.000.00 over a 12 month term!
If your Bank has said "NO" do not despair and do not be pressured into accepting a Non Bank loan offer that seems unreasonable. Call us first on 0800 178 726.
Our Non Bank Lenders include private investors, who use their solicitor to target investments, private individuals, who we have been dealing direct with for in excess of 10 years and companies, who have a combination of their own capital and a funding line. In some instances second mortgages are also available. With the demand for Non Bank Loans ever increasing we have a dedicated Non Bank website with an online enquiry form.
Contact us for more information
or Freephone 0800 178 726