Mortgage Brokers Key To Greater Activity This Summer

“With the next review of the Official Cash Rate not until 22 February, we arguably might see more interest rate stability this summer. However, that won’t make it any easier for many young Kiwis to secure finance in the first place,” says Tim Kearins, Owner of Century 21 New Zealand.

The real estate boss says with listings on the rise and with vendors getting more realistic about price expectations, the coming months could prove to be a good time to purchase a property. While the hurdles remain high for Kiwis to borrow via the traditional banks, he says, mortgage brokers should not be overlooked.

“Let’s not forget that rents are still high, and for many if they can organise a mortgage and buy now, they won’t look back. Some argue it’s better to wait to see if the market falls further, but that’s probably misguided as interest rates maybe much more expensive by then which in the end might be more costly overall,” says Mr Kearins.

Last summer saw a serious credit crunch following the Credit Contract & Consumer Finance Act (CCCFA). Despite some Government tweaking since, big retail banks continue to conduct ultra-conservative assessments on all new borrowers.

“Prospective property buyers have other options. If they can stump up a deposit and prove their ability to service a mortgage, they might be surprised with what a mortgage broker can offer. To help their cause, new borrowers should also consider getting in a flatmate or boarder. That income could make all the difference in getting them over the line,” he says.

The Century 21 leader says mortgage brokers like Julius Capilitan of Century 21 Financial do all the running around, delivering competitive rates and greater borrowing flexibility than traditional banks.

“We’re seeing too many exhausted Kiwis disheartened they couldn’t secure finance and convinced their homeownership dream is over. It’s great then when we can then work through their situation on a very individual basis and successfully secure a tailored mortgage for many of them,” says Mr Capilitan.

The Managing Director of Century 21 Financial encourages buyers to keep hunting around as there is currently so much variation in property prices.

“I believe 2023 will be the perfect time to buy. It will be hard to secure finance given the banks’ almost zero appetite for risk and the lack of liquidity in the market for first-home buyers trying to secure low LVR deals. However, there are only increasing opportunities to break into the market and brokers are well placed to help,” says Mr Capilitan.

He says first-home buyers needing to bridge the gap should also look at First Home Partner – a new shared ownership scheme by Kāinga Ora.

Julius Capilitan says with this mortgage storm coming, Kiwis need a plan to weather it.

“Everyone who is purchasing needs to know their property purpose, their likely tenure, and whether they’re happy to sit tight if need be. They also need their own plan for servicing their mortgage - tested at the affordability of higher interest rates than today’s,” he says.

Mr Kearins says Century 21 Financial’s offering to all C21NZ offices and clients is proving to be a real point of difference for his company’s proposition in the local real estate marketplace.

“With prices softer overall, and with increasing choice in the market, it’s a good time to be a buyer. Buyers, however, need to know that borrowing doesn’t all begin and end with the big banks. Mortgage brokers have come into their own in the past 12 months and will play a key role in 2023 getting more Kiwis into homeownership,” says Tim Kearins.

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