Home Loan in New Zealand
Home Loans in New Zealand that originates from mortgage brokers are still in its infancy stage with only 25% market share as reported by the NZ Mortgage Brokers Association. This is because for 100 years, the New Zealand Government has continuously provided rental houses for New Zealanders incapable of affording a home of their own. Housing policy in New Zealand has been long lamenting in issues on how far governments should mediate in the housing market as Liberal and Labour administrations have argued that private housing ventures do not deliver a good standard of housing to working people and that the state should intervene and provide housing to those whom the housing companies cannot accommodate. On the other hand, National and conservative administrations have asserted that government intervention hinders private investment in worker housing and inhibits self-reliance. Though in 1950, the National government introduced legislation that allowed state tenants to buy their homes to provide better personal liberty than renting and experience the advantage of owning their own home. But it was only in 2001 that Housing New Zealand was established to deliver housing assistance to those in greatest need and to be a principal adviser to the Government on housing and housing policy.
The New Zealand Housing Strategy provides a vision and planned direction for housing the New Zealander for the next 10 years. It seeks to deal with the many housing issues brought about by rising demand and changes in the housing market, and a growing population.
Despite the fact that the home loan market share of mortgage brokers in New Zealand are quite low compared to Australia with home loans of 30% coming from mortgage brokers, in Canada 50% and in the USA 80%. Some home loan investors in New Zealand believe that the mortgage brokers could in time account for 60% to 70% of all home loans originated in New Zealand, noting that in the USA mortgage brokers market share was only 25% in 1992, it had increased to 70% by 2000 and now in 2005, mortgage brokers capture almost 80% of all US home loans created. This is possible because of the stable economy growth of New Zealand and the increasing number of immigrants coming to New Zealand. These people can be the potential first home buyers. And in due time, first home buyers will no longer represent a small segment of the market as they are fast becoming a driving force of activity and as such will have a great impact on what we see unfold in the housing market.
Click here for more information and request an appointment
|
