The Christchurch rebuild is keeping mortgage brokers busy. But the industry is facing a number of challenges. Mortgage brokers Christchurch are a critical part of the property market, helping people buy and sell homes. However, there are some problems that are affecting their ability to do so in Christchurch.
The Market Is Changing
The mortgage broker industry has seen a lot of changes in recent years as the industry has become increasingly competitive. This is due to a number of factors: increased competition from banks and other lenders, new technologies that make it easier for consumers to compare products online, and more regulation.
The Cost Of Compliance
The new regulations introduced by the Financial Markets Conduct Act (FMC) have made compliance more complex and expensive for mortgage brokers. As the FMC is enforced by the Financial Markets Authority (FMA), mortgage brokers need to ensure they have policies, procedures, and systems in place to comply with their obligations under the legislation.
New Regulations
The new regulatory requirements are causing some headaches for mortgage brokers, who have to spend more time on compliance than ever before. It’s not just about complying with regulations; it’s also about keeping up with new technology requirements and ensuring that all staff are trained properly so they can continue to provide great service to customers.
Technology Changes
Mortgage brokers Christchurch are facing a growing range of technology challenges that affect their ability to provide quality customer service. For example, many people use smartphones and tablets when searching on mobile devices or using internet browsers such as Google Chrome or Safari rather than using dedicated applications such as Zopa or Mortgage Brokers NZ’s website. This presents new challenges for mortgage brokers who need to ensure their websites are accessible across different platforms and browsers so they can continue providing great service to customers no matter where they do their research online.
The Shortage Of Skilled Labour
Because of the lack of skilled labour, builders have to wait longer for work to be completed, and they also have to pay their employees higher rates due to the demand for their services. As a result, they cannot afford to take on as much work as they would like, and so many mortgage brokers have had their construction finance applications declined as a result.
Increased Competition
There is no doubt that there has been a huge influx of new mortgage brokers entering the market recently, which has created more competition for existing brokers in Christchurch. This means that they need to work harder than ever before if they want their business to stand out from the crowd!
Banks are more likely than mortgage brokers to offer competitive rates of interest because they can charge lower fees and commissions than independent brokers. This also makes it difficult for mortgage brokers to compete with banks when trying to attract new customers.
Lack Of Access To Credit Reports
Mortgage brokers Christchurch do not have access to credit reports on their clients. This makes it difficult for them to assess the risk of lending money to clients who do not have a good credit history or who have recently declared bankruptcy.
The Lack Of Trust From Clients
The lack of trust from clients is a major problem faced by mortgage brokers in Christchurch. There are many reasons for this. Some clients do not trust brokers because they think that they will try to push them into taking a loan that is not suitable for them. Others think that brokers will not treat them fairly because they do not have any skin in the game and do not care about their interests.
The Lack Of A Mortgage Broker Licensing System
In New Zealand, mortgage brokers are not licensed by the Financial Markets Authority (FMA). However, they are regulated by the Banking Ombudsman Scheme and the Credit Ombudsman Service (COSL). The problem is that these organisations have limited powers and cannot punish misconduct or unsavoury business practices. As a result, bad brokers can continue to operate without any consequences.
Lack of Funding for Home Loans
With so many people looking for funding for their home loans, it is difficult for mortgage brokers to find good deals for their clients. Often, they will have to wait months before they can get sufficient funding for their clients’ home loans. This means that the process of getting a mortgage can take much longer than usual.
Conclusion:
Mortgage brokers Christchurch are best placed to help you if you’re looking to refinance or need advice on a new home mortgage. With the right mortgage broker, you can find a solution that is right for you.
