PHOTO: Economist Tony Alexander
Tough servicing tests continue to hinder the home loan market, leaving borrowers unable to tap into attractive headline interest rates.
Economist Tony Alexander, points to “apparent bank reluctance to ease servicing criteria” in the New Zealand market, in his latest weekly report.
However, Alexander believes there could be good news on the way for borrowers, with increased competition in the home loan market, and possible cuts in one and two year rates in Spring.
The independent economist’s latest survey of the property valuer market reveals volumes of enquiries for house valuations have risen by 50% in July.
The data backs up strong REINZ figures, which revealed a stronger-than-expected property market in June.
“Enquiries for valuations to support the refinancing with a new lender of a currently mortgaged residential property have increased,” Alexander said. “But they have decreased for commercial property.
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