With all the rules and criteria that Kiwi banks now have there are times when people need to start looking at bank alternatives.
These alternatives are generally provided by the non-bank mortgage lenders, by finance companies, mortgage trusts, credit unions, some private lenders and now peer to peer lenders too.
There are choices, but you need to know where to look.
Looking At Bank Alternatives For Home Loans
In New Zealand some of the top mortgage brokers have good bank alternatives for home loans that have slightly different lending criteria. As a Kiwi mortgage man I have access to the best non-bank mortgage lenders, finance companies, mortgage trusts, credit unions and other alternative lenders like peer to peer lenders.
When we talk about non-bank mortgage lenders we typically are talking about those that offer long-term mortgage loans. Those lenders include Resimac Home Loans, Liberty Financial and the finance companies Avanti Finance and Basecorp Finance which also now both have long-term options. Credit unions and some of the smaller banks also provide long-term mortgage solutions.
There are some mortgage trusts that have longer term loans, but those are typically up to about 3-years. Finance companies will often only offer bridging type loans with terms of 1-year with the option of extending the loans subject to good repayment history and good equity.
Consider The Options & Get Good Advice
Many mortgage brokers will go for a non-bank lender for any situations that are slightly outside of the norm when in fact a good mortgage broker will work with the banks where appropriate to secure you the best finance.
There are some very outspoken people on the internet who claim that the big banks will just take advantage of you, so for that reason your preference should be finding non-bank alternatives.
Of course, sometimes you will find a bank alternative is the best or only option.
Working with an experienced mortgage broker will be a real advantage when your situation is a little different. Sometimes this means the staff in the banks cannot understand how to approve a loan; however often working with an experienced adviser means they can recycle the information and present it to the right person within the banks that is able to approve your loan.
As well as getting an approval, a good adviser will consider all options to ensure that the loan you end up with is the best suited for you.
In New Zealand some of the top mortgage brokers like those at The Mortgage Supply Company have good bank alternatives for home loans.
