Reserve Bank home-loan cooling measures have driven business into mortgage brokers' hands, says Jeff Royle, chief executive of iLender at Whangaparaoa and Freemans Bay.
Restricting loan to value ratios has forced many first-home buyers to find trading bank alternatives, he says, just as people with credit issues, ex-bankrupts, those made redundant or the self-employed often need a mortgage broker.
"It's ostracised the Kiwi first-home buyer. But in terms of what it's done for my business, it's been the best for 10 years. It's driven more people to the mortgage broker community," says the broker, who does around 90 per cent of his business online.
iLender can get money for 90 per cent loans from many sources including Liberty Financial, Southern Cross Financial, Resimac Home Loans and banks. Royle eschews LVR measures, saying the risks of granting 70 per cent loans compared with 90 per cent are negligible if the mortgage holder can't repay the money.
But the move had cut many younger people out of the frame and pushed more investors into buying properties, particularly in Auckland and Christchurch, Royle said.