The boss of an Australian non-bank mortgage lender says the pending cap on low deposit bank lending could be a catalyst for opening up the market to non-bank lenders.
Peter Wood, general manager at Bluestone Group, said his firm was considering re-entering the New Zealand market before the Reserve Bank's announcement that new bank lending to borrowers with less than 20 per cent equity must be capped at 10 per cent from October 1.
"We have just relaunched into the Australian market in the last four to five weeks, obviously a natural extension to that is the New Zealand market. New Zealand has always been on the radar but timing is everything."
Wood said the cap for banks, which does not apply to non-banks, was not a reason to enter the market but made it more attractive.
"From one side of the fence yes it is more attractive - there is a gap that has opened up."