Are they really serious about stimulating the economy or are they simply firing blanks. Personally, I don’t think you need to don a bulletproof vest just yet.
Lenders in my opinion are largely responsible for the recession we are in now (happy to explain that in next week’s Blog should interest warrant it) therefore I feel they; the lenders have a duty to;
1. help those they dug a big hole for climb out of it and,
2. make sure it doesn’t happen again.
Sure it was OK when we were kids to get on the bike, fall off, get back on, fall off, and get back on until we learnt how to ride it but shouldn’t we have moved on from there. It doesn’t appear so.
Scary really when those in control of trillions of dollars don’t learn from past mistakes.
You hear those without answers saying things like, this is the first time the world has experienced anything like this, bullocks, we have several times, just on a smaller scale.
Each time the problem has gotten bigger and bigger and bigger.
The only difference this time is we can’t find a Band-Aid big enough.
Lenders have been sitting on their hands for far too long allowing the recession to escalate to the pandemic it has become. A few are starting to fire their guns but largely they are using blanks.
Just last week I had a loan application turned down from one of the lenders promoting 90% lending, their reason?
One of the applicants is a real estate agent and due to the current state of the market they felt her income and job, wasn’t secure enough to take the risk.
The market is flat yet she wins awards for being a top earner, and her partner has a very secure job. Its things like this that really irk me.
Twelve months ago when the market was on a high they could have borrowed the money from anyone. Now the market has bottomed out they can’t.
As I commented to another client a few days ago, it’s like the banks work on a time delay and are always out of step with what is going on. Two years ago they should have been doing what they are doing now and now they should be doing what they were doing then.
And please, don’t say to me, that’s easy to say now, as the writing was on the wall in twenty foot letters. And yes that was BEFORE the recession hit NZ.
It’s now time to bring out the real fire power [Realistic lending policies] Leave the lessons on the whiteboard so as we don’t forget, and move forward.
Lending policies are now what they were in the early 90’s so the road forward should be a stroll in the park as many have walked it before.
Do you want to know more?
Could you do with some advice on your mortgage?
Would you like some help talking to your bank, or real estate agent?
Email me for anytime for help, brian@propertyprofit.co.nz and make sure you sign up for my two free books here.
Brian Dalley is a qualified NZMBA Mortgage Broker, Property Investor and former Real Estate Agent.
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