Mixed forecast for mortgage advisers
A new survey of mortgage advisers suggests there is a lot of pessimism in the home lending sector offset by patches of hope in specific areas.
Thursday, October 28th 2021, 6:00AM
by Eric Frykberg
This has emerged from a survey of 60 brokers by the independent economist Tony Alexander.
Rising interest rates stemming from rising inflation get some of the blame for the negative trends, according to the survey.
The lockdown has added to this problem.
However, with some investors selling one or two properties to retire debt, or perhaps switching their wealth into other assets, refinancing enquiries could easily regain strength, the survey reported.
Many respondents to the survey said banks were tightening up their loan assessments with regard to expenses, incomes, spare monthly cash, deposit size, and so on. However, overall, there was still a good willingness to advance funds.
Just 2% of 60 respondents reported seeing fewer first home buyers coming forward for advice. This was an improvement on a month ago when 16% reported a downturn.
There was also an improvement in the numbers of approaches from property investors, but it was marginal. Just on 39% of mortgage advisors reported a decline in investor interest, an easing from 56% a month earlier.
The report suggests anxiety stemming from the March tax changes is starting to ease off.
There was also a downward trend in the number of approaches from people seeking refinancing.
In another finding, the survey showed 77% of mortgage advisers found their clients wanting a three-year fixed loan.
This was an increase from 57% a month ago and is being seen as a response to the signs of a steady series of rate increases by the Reserve Bank.
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