Turnaround Time Turmoil
Mortgage advisers say turnaround times of two to three weeks are commonplace in the market, as banks struggle with rising demand and mortgage deferral requests.
1 October 2020
Turnaround time turmoil continues, with the big four banks taking anywhere from a week to three weeks to process mortgage applications. Additional questions about future financial security, more forms to complete, and mortgage deferral requests have been blamed for the slowdown. SuperCity Mortgages’ Joel Oliver says turnarounds of about ten working days are common. He described the delays as “embarrassing”.
Loan Market’s Craig Pope says “a two to three-week turnaround” was the norm at the moment and that borrowers are subject to intense scrutiny. “No matter how thorough we make an application, they [the banks] inevitably come back with a question or two, sometimes having not properly read through what has been sent. Or asking mundane questions, like ‘what is a 43-year-old’s exit strategy
As soon as they ask questions or request more info, we get put back down the bottom of the queue and then it takes even longer, he adds. For Q Group’s Geoff Bawden, turnaround times are “a disgrace” across the main banks. He says lenders are asking clients unknowable questions about their future financial security. “To seek declaration that a client will not be affected adversely by Covid in the future, which some lenders are now requesting, is laughable.
“How the heck can anyone provide an assurance around that, when we don’t even know what effect Covid might have on the community or economy moving forward?”
The complaints about turnaround times come as ANZ, New Zealand’s biggest bank, makes changes to try and reduce its backlog of deferral requests and new loan applications. The bank has reallocated staff from branch to handle broker applications, and has made some new hires to its adviser market team in recent weeks.