You may have noticed that taking out a loan is not as fast as it used to be. One reason is the Responsible Lending Code which was introduced in 2015.
This Code which applies to all lenders in New Zealand, is designed to make sure no one is saddled with a loan they can’t afford to service or repay. Banks and mortgage advisers now ask more detailed questions when handling a loan application. The Code requires us to make “reasonable inquiries” into a borrower’s financial circumstances so borrowers can’t access credit as readily.
The main focus of the Code is to stamp out bad practices at the shadier end of the market and all lenders have agreed to the same principles. The result should be fewer people signing up for a loan they can’t really handle. Unfortunately in the short term it does make the process slower and more detailed.
At Sue Tierney Mortgages we will always invest the time to listen carefully to your needs and help you get the most appropriate loan. We’ll take care of the paperwork and guide you through the process. Its all part of our service.
Here is something you can do to speed things up. Talk to us as early as possible.
Start the process of applying for a loan well before you put in an offer on a property. It will take much of the waiting and stress out of the process.
Thinking of taking out a loan? Make an appointment