Brokers question what lies ahead following prime minister’s departure
The mortgage and finance industry has been quick to respond on the news that Jacinda Ardern is resigning as prime minister, effective February 7.
During a press conference on Thursday afternoon, Ardern said she would not be able to continue to work as prime minister for another term, stuff.co.nz reported.
"I would be doing a disservice to this country and the Labour Party if I continued knowing that I just don't have enough in the tank for another four years," Ardern said.
Ardern said she had no plans post-politics but would stay on as an electorate MP after a new prime minister is appointed in the weeks ahead.
"I know there'll be much discussion in the aftermath of this decision as to what the so called 'real reason' was," she told stuff.co.nz. "Politicians are human. We do all that we can for as long as we can and then, it's time. It's time."
Brokers respond to the shock decision
Jamie Sanderson (pictured above left), one of NZ Adviser’s Top Advisers for 2022 and director of Auckland brokerage Jamie & Co, said Ardern’s resignation would completely change the landscape and the campaign for the next election.
“Interest rates, inflation and the housing market are top of mind right now for many New Zealanders,” Sanderson said. “The current government’s stance on property investors and CCCFA changes have had major impacts on the finance and housing market - unfortunately not in a good way.”
“Labour has been light on their influence with the RBNZ and there needs to be a government that will hold the RBNZ accountable and challenge them on their rate rises to stop inflation. There are other ways to stop inflation rising and this direction will have a severe on household’s affordability moving forward.”
Jen Taylor (pictured above centre), the founder and director of Taylored Mortgages and winner of the Young Gun of the Year and New Mortgage Brokerage of the Year at the 2022 New Zealand Mortgage Awards, said she was already having conversations with her clients around a potential change in government this year.
“A change in government could bring potential uncertainty, however what will a change in party leader bring?” Taylor said.
“Therefore, more now than ever our clients need a plan so they have some certainty going forward in their financial position. Whichever way you swing, Jacinda is only human and as a mother of two young children myself, I wish her all the best having the time to be able to share with her family.”
Wayne Henry Mortgages director Wayne Henry (pictured above right) said Thursday’s historic announcement had certainly left the door ajar for a new government.
“Based on the current government’s last five years, it seems the average ‘everyday Kiwi’ has taken a few more hits than we were expecting,” Henry said. “Not being able to claim back any losses through your investment, the healthy homes saga, the Reserve Bank LVR restrictions, CCCFA, the list goes on.”
Henry said the outcome of Ardern resigning was starting to look very promising from a finance industry perspective.
“The last two years especially have been extremely difficult to navigate, given all the roadblocks (mortgage advisers) have had to deal with,” he said.
“We have somehow managed to turn a very simple product (lending) into something that requires a hell of a lot more expense and resources to initiate. We can only hope for change – the next government now has a blueprint on what not to do. I’m feeling a little more confident for all Kiwis with today’s announcement.”
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