In what is quite a coup for Westpac, it has been announced that they will now be able to fast-track mortgages on TC3 properties. Liz McDonald at The Press reports:
Westpac is fast-tracking mortgage lending on homes on TC3 land in an attempt to increase market share, and says the new policy is already boosting business.
The bank has bought land data from a geotechnical firm which compiled it for insurance companies.
Westpac’s South Island head of retail banking, John Brophy, said the bank’s staff can use the data to help approve or decline loan applications on the spot for 90 per cent of TC3 borrowers. The other 10 per cent would require more investigation.
“This is a game changer – people can walk in and walk out with home loan approval in most cases.
“We don’t even consider whether land is TC3 now. It was a blunt tool we had to use before, because we had nothing else to evaluate the risk profile of a property.”
I definitely agree. It was never intended for these technical land categorisations to be the last word on the viability of land, but merely a guide for foundational requirements. This will be of benefit not only to TC3 residents who are selling or looking to sell, but also first home buyers, who for the most part were unable to pursue TC3 properties because the banks would not lend on them.
It’s certainly heartening to see major lending institutions (as well as residents and buyers) are now seeing that there is a way forward for TC3 properties.