Over recent weeks we have seen the banks dropping their home loan rates and now we are seeing the non bank lenders interest rates drop too.
Today we have had Bluestone Mortgages come out with a range of new rates starting from 4.44%
The rate of 4.44% is the lowest of this non bank lenders rates and is a reduction from 4.69%
Non Bank Lenders Interest Rates
In New Zealand we have the choice of a few non bank lenders that offer long-term home loans, plus another group that offer short-term or bridging finance options.
When we look at the lenders that offer long-term mortgages there are a few and they work slightly differently;
Some of the non bank lenders have a set interest rate regardless of the borrowers situation. This is similar to how the banks operate and you will pay a set interest rate regardless of your credit profile (your credit check), the loan to value ratio (LVR) and your ability to prove income. Having a fixed interest rate like this can suit those people that have a lower credit score (ie: bad credit or ex-bankrupt), higher loan to value ratios and/or the inability to prove income.
Other non bank lenders use a matrix system to determine the interest rate that you would pay. The idea is the non bank lenders interest rates will be better aligned to the deemed risk – if your credit is better then you will pay less than someone with bad credit wanting a home loan, if you have a larger deposit you will pay a lower interest rate than someone with a lower deposit and someone that can prove income is going to pay less than someone that needs a low doc loan.
Ask An Expert Non Bank Broker
It’s great to have the choices that we do, but it also means that it is easy for people to choose the wrong lender for a given situation.
Sometimes the difference will not be too much, but other times it can be significant.
This is something that we specialise in – we like to think that we are the experts that can help you make the right decisions.
It’s as simple as telling us your story so we can provide advice and options.
