Borrowers are experiencing delays of up to five weeks as banks work to clear a backlog of lending requests. The process typically takes just five days, but an influx of applications when interest rates dropped last year has created apparently a large backlog. Advisor at Loan Market, Michelle Ice among it is with us and she's here this evening. Good evening, Hi, how are you good? Thanks? Michelle? Is this usual? Is this normal? When interest rates drop we start to see backlogs at the banks.

Borrowers are experiencing delays of up to five weeks as banks work to clear a backlog of lending requests. The process typically takes just five days, but an influx of applications when interest rates dropped last year has created apparently a large backlog. Advisor at Loan Market, Michelle Ice among it is with us and she's here this evening. Good evening, Hi, how are you good? Thanks? Michelle? Is this usual? Is this normal? When interest rates drop we start to see backlogs at the banks.

Definitely common when interest rates start to decrease. Of course, we saw the OCR drop right before Christmas, so that's usually a crunch time regardless. But yeah, it was definitely a large backlog, but the banks have managed to clear all those. We are seeing now the standard five working days for applications, which is great.

Definitely common when interest rates start to decrease. Of course, we saw the OCR drop right before Christmas, so that's usually a crunch time regardless. But yeah, it was definitely a large backlog, but the banks have managed to clear all those. We are seeing now the standard five working days for applications, which is great.

Oh that's good. Was it maybe just a Christmas thing? Because I imagine a lot of people want to get their ducks in order before Christmas? Do you know, do you typically see an increase in applications then too?

Oh that's good. Was it maybe just a Christmas thing? Because I imagine a lot of people want to get their ducks in order before Christmas? Do you know, do you typically see an increase in applications then too?

Yeah, definitely. Of course, the OCR decreases absolutely accelerated that, so you know, everyone was wanting to do something prior to Christmas and also kind of you know, take the box in terms of achieving that goal before the year ended. But there's a mix of things that caused such a large backlog before Christmas, and I think the main thing would be obviously, as I said, the OCR change, but as well as a change in the regulations in terms of now we need to provide so much more information to the banks and applications. So the biggest backlog is actually the reworked que within the bank, so those the applications that haven't been submitted correctly, or there's information missing, or they're just more complex applications. That of course causes a lot of delay when we needed to go back to the clients or the banks, meaning more information. And so I think that that's the biggest cause that we saw last year.

Yeah, definitely. Of course, the OCR decreases absolutely accelerated that, so you know, everyone was wanting to do something prior to Christmas and also kind of you know, take the box in terms of achieving that goal before the year ended. But there's a mix of things that caused such a large backlog before Christmas, and I think the main thing would be obviously, as I said, the OCR change, but as well as a change in the regulations in terms of now we need to provide so much more information to the banks and applications. So the biggest backlog is actually the reworked que within the bank, so those the applications that haven't been submitted correctly, or there's information missing, or they're just more complex applications. That of course causes a lot of delay when we needed to go back to the clients or the banks, meaning more information. And so I think that that's the biggest cause that we saw last year.

Which banks are the quickest, good question.

Which banks are the quickest, good question.

It really differens on the type of application we've seen. Most banks be very true system at the moment, as I said, where our clients were estimating between five to seven working days, so they're all very equal at the moment, which is really good.

It really differens on the type of application we've seen. Most banks be very true system at the moment, as I said, where our clients were estimating between five to seven working days, so they're all very equal at the moment, which is really good.

But typically is this is there a bank you oh, I don't want to go through ASB they take ages no, God, not at all.

But typically is this is there a bank you oh, I don't want to go through ASB they take ages no, God, not at all.

It's as I said, we advise. Banks are based on what the client's doing. So some banks specialized for first on buyers, you know, some banks are great for business leanning. So it really depends and that's why a lot of people work with more good advisors to get that talent advice that's going to really suit what they're doing.

It's as I said, we advise. Banks are based on what the client's doing. So some banks specialized for first on buyers, you know, some banks are great for business leanning. So it really depends and that's why a lot of people work with more good advisors to get that talent advice that's going to really suit what they're doing.

Michelle, thank you very much for that. Good to know that it's all back in order now. Michelle Eismonger with us, she's the Loan Market adviceor For more from Heather dou Glassy Ellen Drive, listen live to news talks.

Michelle, thank you very much for that. Good to know that it's all back in order now. Michelle Eismonger with us, she's the Loan Market adviceor For more from Heather dou Glassy Ellen Drive, listen live to news talks.

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