In New Zealand banks will generally offer the lowest cost mortgages, but there are many occasions where the banks are too difficult or just do not offer the finance required; hence I will often suggest one of the non bank mortgages.
As a mortgage adviser I deal with a lot of non bank mortgages and can help you get finance with both the banks and non banks too.
When Banks Don’t Work
Banks are generally conservative lenders, and that is where non-bank lenders can often provide an alternative that might work better for you.
There are a few non-bank lenders that offer finance in New Zealand and they may offer finance in situations where the banks strruggle.
Some examples are:
Not Able To Prove Income – the banks have set criteria for proving income and that is not always going to work.
Bad Credit Mortgages – when the borrowers might have credit issues.
Over Borrowing Limits – the Reserve Bank says that there are maximum borrowing limits that banks must adhere to, but a non bank has different rules and so might be able to offer more.
Bridging Finance
In many cases a non bank mortgage might be a short-term or bridging option.
You might have a situation where the banks are not willing to provide the funding that you need, and therefore a non bank mortgage might be a good solution even if it’s a bit more expensive.
It might be that this finance is used to “bridge the gap” providing a short-term solution which offers finance until the bank can take out the loan at better rates.
Consider All Options
When you need to borrow money then you should consider and be open to all options including non-bank mortgages.
The key is to discuss the options and what is important to you.
