Bank restrictions have led to a flow of prime customers to non-bank lenders, which are offering lower rates than ever.
Resimac's head of New Zealand Luke Jackson said the company "was perfectly placed to service the market", and had grown its book by nearly 30%.
"We haven’t had to slow down on lending volume or make any changes to credit policies this year," he said. "On an annualised basis, we’re running close to a 30% book growth, and we announced earlier this month that we’ve had a record number of settlements over the last six months."
"With banks being obligated to raise capital buffers, they’re continuing to focus on simple, low-risk transactions," Jackson added. "Advisers have realised that in order to get transactions happening, they need to use a wider range of funders, and thus they’re submitting more deals to non-banks. Any clients that need a bit of pragmatic thinking, or who don’t fit the automatic decision box of banks, are coming to non-banks."
Michelle Sargeant, national sales manager at Pepper Money, said her company had originated more than $100 million in loans in its first year in NZ.
"Non-bank lending has remained buoyant throughout this period because brokers are more aware of the innovative features that non bank lending provides to their customers, and are benefiting from the newer technologies non bank lenders like Pepper Money deliver," Sargeant said.
Stephen Massey of Avanti said the past two months were "two of our biggest ever" for settlements: "Avanti Finance has certainly seen some of our highest levels of applications and new business over the last three months," he added.
Massey said banks conservative behaviour, and turnaround time struggle, play into the non-bank sector's hands.
"Avanti’s near-prime offering has increased our share and we have had great support from the adviser market. Lastly people are very keen to enter the market right now and looking for options, something Avanti can help with," he said.