Market is strong but banks cautious with lending

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By PHILIP CHANDLER

Forget Covid — an Arrowtown-based mortgage broker reports Queenstown’s residential real estate market remains ‘‘surprisingly buoyant’’.

Roost Mortgage Brokers principal Mark Pullar says first-home buyers and investors, ‘‘energised’’ by both the temporary removal of loan-to-value restrictions and the prospect of sub-2% interest rates, have been very active.

‘‘Purchasers retain confidence in the Queenstown market as they see this as a once-in-a-decade opportunity to get into the market at a time when there is more of a balance between buyer and seller.’’

While market rents have dropped, a drop in interest rates has offset that, he says.

Banks had continued to be ‘‘excellent in their support of existing borrowers, so we haven’t seen a lot of evidence of significant mortgage stress or mortgage sales’’.

However, Pullar says at the same time ‘‘banks have been very cautious with new lending, particularly for Queenstown-based borrowers exposed to tourism and hospitality’’.

‘‘This has seen a flight to mortgage brokers who can help borrowers put
together the right detail to get the result.’’

scoop@scene.co.nz