2nd Tier Lenders

A lot of people who don't know any better think that 2nd tier lenders are prohibitively expensive and don't even consider the option but for a lot of people it is well worth a serious look.

Consider the following 2 mortgage clients we worked with earlier this year.

Both clients were unable to get lending from a bank at special rates of around 2.5% but we recommended the option of a 2nd tier lender at rates on offer of 2.99% (no cash contribution on offer, and there is an application fee also).

Client 1, hesitated due to the idea of paying higher interest rates which would have been $3k extra interest per year.

Client 2 accepted the higher interest rates at around $3k per year and purchased the property which has since increased in price by $100k

A 2nd tier lender is an excellent option if you want to borrow more than the banks will lend you, or if you can't get an approval in the first place. It can especially be an excellent choice for property investors, or applicants with adverse credit history.

If you can get over the line with a bank then do it and enjoy the lower rates, but if you need to be pragmatic for whatever reason, 2nd tier lenders in New Zealand are excellent to work with if you can see the bigger picture and focus on more than just interest rates.