A financial commentator believes small mortgage brokers should be able to stay in business during the tough times ahead, despite one lender calling it a day. GE Money is closing down its New Zealand division of Wizard Home Loans.
The closure of Wizard Home Loans is expected to make it a lot harder to get a competitive mortgage on a house. GE Money is shutting down its Wizard Home Loan business, blaming the global financial crisis and New Zealand home loan market conditions.
Spokesman Geoff Lynch says the writing has been on the wall since May. “The market conditions have certainly worsened, the last few months have been particularly difficult. But it’s just become clear now that there isn’t a buyer or a strategic partner.”
Interest.co.nz editor Bernard Hickey says the announcement is unsurprising. “The credit crunch is filtering its way down to New Zealand and we now have one less competitor in the market. And it’s now that much more difficult to get an easy loan to buy a house.” Mr Hickey says the company was a product of an era where you could get easy money on wholesale markets, and those days are now gone.