The real estate industry has experienced an increasing number of deals falling over because of finance, according to a real estate industry leader.

Century 21 New Zealand National Manager Geoff Barnett said a “new wave of lending caution” from the country’s retail banks and financial institutions is affecting some settlements, and in some cases after buyers thought they had pre-approval sorted.

“When it gets down to the nitty gritty of a sale, more lenders are then insisting on getting the likes of valuations done and giving much closer scrutiny to mortgage serviceability. It’s often when banks are finalising their lending assessment on a specific property, that some buyers are then told they no longer meet the lending criteria.

Barnett said news of a government in place will be a timely boost for overall certainty, stability and confidence going into summer.

“During the election period and the subsequent coalition negotiations the economy effectively hit pause as everyone expected. When a new government’s in place and a policy and project programme well signaled, we’re again anticipating this summer to be steady at the very least,” he said.

Source: NZadviseronline.co.nz

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