Brokers have role as banks turn off tap
The latest Reserve Bank statistics for January show that the banks’ level of lending to borrowers with a deposit of less than 20% dropped yet further in the month, from 4.7% in December to 3.8%.
They have to restrict it to less than 10% of their new lending.
David Windler, of the Mortgage Supply Co, said a difficult situation had developed where banks were starting to become more willing to lend to low-deposit borrowers because they realised they were well under the target – but did not want to communicate that too widely and open the floodgates.
“Advisers are perfectly placed to be the go-to source,” he said.
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