In his decade and a half as a mortgage broker, including 10 years in his own business in Glen Eden, west Auckland, Apa Fatialofa admits conditions are as tough for many as they’ve ever been.
“The credit crunch has seen the banks tighten up, making it as tough as it has ever been in my time in the business for those who want to borrow,” he says.
Fatialofa has seen those in the industry leave in droves, but his experience enables him to see opportunities.
“Brokers come and go, depending on whether times are good or bad. We’ve been able to sustain ourselves because we know the ups and downs are all part of the industry. We pride ourselves on our service, with a client base gained largely on word of mouth.”
When the housing market was booming his concern was seeing home ownership falling among Pacifi c people in the Auckland region.
But falling house prices and the Kiwisaver scheme could see the trend reversed.
“Some bargains are really starting to emerge, and that’ll only increase in the next couple of years,” he adds.
“It will bring the size of mortgages down to a more manageable level and interest rates are coming down. Buying beats paying rent, which is dead money. If you can channel it into a house, you get the capital gains from an asset over time, despite the ups and downs.”
Gone are the days when mortgages could be brokered on 100% of the property. Fatialofa sees a savings culture emerging, particularly with the growth of the government Kiwisaver scheme, which is too good for those aspiring for home ownership to turn down.
“You have the government and employers making a contribution, and if you get in now, you’ll have enough for a decent deposit for your first home in four or five years time,” he says. “We’ve expanded our services to include Kiwisaver as well as offering insurance. Good, common sense advice is what people need right now. When times were good, people were borrowing against the growing value of their home thinking it would always go up. Even the banks were getting carried away. Those times are gone, so it helps for people to seek information from those in the industry about the options that do still exist.”
Apa Fatialofa was born in New Zealand to Samoan parents Momoe (his father from Lepa, who passed away) and Matalena (Malie) as one of seven brothers (including Manu Samoa rugby legend Peter Fatialofa) and eight sisters. He has five children – Sheena, Joanna, Larry, Leo and Apa Junior – and is partner to Edna (Eddie) Roberts.
