ANZ's head of mortgage adviser distribution shares his insights
The New Zealand mortgage market has been experiencing significant fluctuations, driven by various economic factors.
Baden Martin (pictured above), head of mortgage adviser distribution at ANZ Bank New Zealand, offered insights into the current landscape and the potential outlook for mortgage advisers and lending activity in the coming months.
Martin said the level of activity in the home loans sector is not uniform and depends on several factors, including interest rates, inflation rates, and overall economic conditions. In the current environment of rising interest rates, many homeowners have been rushing to lock in rates as soon as possible, fearing further increases.
“This has been a driver of an increase in refinance applications as homeowners have looked to secure more favourable loan terms,” he said.
Martin said feedback from advisers suggests that first-home buyers have been more active in the recent winter period than investors.
“When the housing market is active with first-home buyers, there are opportunities for advisers to connect potential borrowers with lenders,” he said.
As warmer weather approaches, Martin anticipates that advisers will see increased activity, driven by a resurgent real estate market, growing interest in residential investment, and the associated rise in demand for financing.
“It’s important for advisers to regularly assess the market conditions and adapt their advice and recommendations accordingly,” he said. “Given the dynamic nature of the NZ mortgage industry, staying informed about the latest developments, regulations, and trends is crucial to identifying and advising clients about potential risks and opportunities.”
So, what lies ahead for mortgage advisers and lending activity in the next 12 months?
According to Martin, there are some encouraging signs in the property market. Property prices have shown signs of growth in recent months, although this has been more pronounced in metro areas than in regional ones.
The property market is influenced by a multitude of factors, including economic conditions, global events, and local demand and supply dynamics.
“It’s also important to note that market conditions can change rapidly, and the situation in 2024 may be quite different from what was observed in 2023,” Martin said.
To find out more about how ANZ is supporting mortgage advisers and further insights on the lending market, check out NZ Adviser's premium article: Working with advisers to help Kiwis achieve their homeownership goals
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