“More and more are looking at their refinancing options”
Lockdowns have provided a perfect opportunity for Kiwis to go over their budget, and many have been searching for a better mortgage deal, with more and more turning to non-bank lenders.
According to Pepper Money New Zealand country head Aaron Milburn, the adviser channel has been crucial in driving a rise in demand for alternative lender solutions, particularly as the main banks become more selective and harden their criteria. He said that the past year had seen a very strong take-up of solutions from Pepper Money’s own product range, and with more time on their hands to take another look at their finances, customers have been more open to exploring alternative options.
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“What we’re seeing in New Zealand, outside of housing growth in the major centres, is that more and more Kiwis have been doing their budget during lockdown, and they’re thinking ‘I should be on a better deal,’” Milburn said.
“They’ve then been reaching out to not only mortgage advisers but also to lenders directly - more and more are looking at their refinancing options, and we’ve seen a real growth in the adviser channel through that.”
“There’s been a real take-up of Pepper Money solutions to try and meet those needs, and I reckon there are very few New Zealand families who have not done their budget throughout the COVID-19 period,” he explained.
“We’ve been able to offer those solutions where the main banks have been unwilling to help.”
Milburn said that when it comes to advisers, he never saw a real ‘reluctance’ around dealing with alternative lenders, but rather a lack of understanding. He said advisers have been crucial in building Pepper Money’s New Zealand success, and that the business model had been designed specifically to work through them.
“Everybody is different, and there’s no such thing as a ‘vanilla transaction’ in the mortgage market,” Milburn said.
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“I don’t think advisers were ‘wary’ of non-banks as such, I just think nobody had ever taken the time to really explain what a non-bank does and how it operates, or to welcome them in.”
“Our advisers have been part of the build of this organisation, and it was really built by and for the advisers,” he added.
“They’ve really understood the strategy and vision for our company, and today we have an advisory committee that helps guide our strategy. So, we’re very close to the adviser community, and we’re super hand-in-glove with them on everything we do in New Zealand.”
