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Speaker 1: Borrowers are experiencing delays of up to five weeks as

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Speaker 1: banks work to clear a backlog of lending requests. The

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Speaker 1: process typically takes just five days, but an influx of

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Speaker 1: applications when interest rates dropped last year has created apparently

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Speaker 1: a large backlog. Advisor at Loan Market, Michelle Ice among

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Speaker 1: it is with us and she's here this evening. Good evening, Hi,

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Speaker 1: how are you good? Thanks? Michelle? Is this usual? Is

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Speaker 1: this normal? When interest rates drop we start to see

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Speaker 1: backlogs at the banks.

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Speaker 2: Definitely common when interest rates start to decrease. Of course,

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Speaker 2: we saw the OCR drop right before Christmas, so that's

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Speaker 2: usually a crunch time regardless. But yeah, it was definitely

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Speaker 2: a large backlog, but the banks have managed to clear

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Speaker 2: all those. We are seeing now the standard five working

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Speaker 2: days for applications, which is great.

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Speaker 1: Oh that's good. Was it maybe just a Christmas thing?

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Speaker 1: Because I imagine a lot of people want to get

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Speaker 1: their ducks in order before Christmas? Do you know, do

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Speaker 1: you typically see an increase in applications then too?

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Speaker 2: Yeah, definitely. Of course, the OCR decreases absolutely accelerated that,

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Speaker 2: so you know, everyone was wanting to do something prior

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Speaker 2: to Christmas and also kind of you know, take the

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Speaker 2: box in terms of achieving that goal before the year ended.

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Speaker 2: But there's a mix of things that caused such a

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Speaker 2: large backlog before Christmas, and I think the main thing

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Speaker 2: would be obviously, as I said, the OCR change, but

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Speaker 2: as well as a change in the regulations in terms

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Speaker 2: of now we need to provide so much more information

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Speaker 2: to the banks and applications. So the biggest backlog is

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Speaker 2: actually the reworked que within the bank, so those the

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Speaker 2: applications that haven't been submitted correctly, or there's information missing,

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Speaker 2: or they're just more complex applications. That of course causes

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Speaker 2: a lot of delay when we needed to go back

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Speaker 2: to the clients or the banks, meaning more information. And

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Speaker 2: so I think that that's the biggest cause that we

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Speaker 2: saw last year.

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Speaker 1: Which banks are the quickest, good question.

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Speaker 2: It really differens on the type of application we've seen.

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Speaker 2: Most banks be very true system at the moment, as

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Speaker 2: I said, where our clients were estimating between five to

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Speaker 2: seven working days, so they're all very equal at the moment,

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Speaker 2: which is really good.

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Speaker 1: But typically is this is there a bank you oh,

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Speaker 1: I don't want to go through ASB they take ages no, God,

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Speaker 1: not at all.

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Speaker 2: It's as I said, we advise. Banks are based on

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Speaker 2: what the client's doing. So some banks specialized for first

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Speaker 2: on buyers, you know, some banks are great for business leanning.

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Speaker 2: So it really depends and that's why a lot of

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Speaker 2: people work with more good advisors to get that talent

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Speaker 2: advice that's going to really suit what they're doing.

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Speaker 1: Michelle, thank you very much for that. Good to know

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Speaker 1: that it's all back in order now. Michelle Eismonger with us,

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Speaker 1: she's the Loan Market adviceor For more from Heather dou

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Speaker 1: Glassy Ellen Drive, listen live to news talks.

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Speaker 2: It'd be from four pm weekdays, or follow the podcast

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Speaker 2: on iHeartRadio