Message from Brenda Nom (Brenda Nom Mortgage and Insurance Adviser)
In this current housing market, it can be more tricky to seek finance as the banks are changing their criteria to safe guard themselves in the current environment and that means it’s harder to get a loan with less than 20% deposit.
It also means you can't really “shop” around as much as most bank are focusing on their existing clients rather than new to bank clients.
BUT good news is if you already have a home, two of the banks so far have announced they will lend from 70% to 80% on rentals – so let us know if this is something that would interest you.
So, what can you do to ensure that one shot you may have will result in a positive outcome:
We will work out what you can borrow and with who OR we may suggest helping you with a debt consolidation to tidy up multiple loans and finance cards and review in 3-6 months – we write up a plan for you to follow so we can get you into the market as soon as possible – this is part of our service.
If you can buy now – we will take care of all the paper work and how best we present your loan application to the bank/s while in some cases you may not meet your banks criteria there are still the low deposit “First home loans” which a few of the main banks are doing.
Print off your last 3 months bank statements and check - are there any unarranged overdraft fees or dishonours if so pop into see the bank or call them and ask for help to rearrange timing of payments going out – get bank ready first!
Or we can help you with this.
Reduce limits on any finance cards you have or cancel them if there is nothing on them – this looks better as they take the limit of the card into account, which effects how much you can borrow “in case” you go for a spend up!
Save for valuation and legal costs – some of the banks will not offer “cash back incentives now” if you have less than 20% deposit (but some will) – we can ensure you are getting the best deal where possible.
Be prepared with your paperwork before seeing us or the bank – make sure you have registered at IRD for online services and they will want to see your last 12 months and previous earnings.
In many cases what you pay in rent is equal to or even less than your loan repayments, especially in this market. It makes it very attractive to any home buyers to make the move and enter the market or buy and sell or purchase a rental.
Just ensure you have some fat in your budget so if rates increase in years to come you have some wriggle room.
We can also review your Kiwi Savers to ensure they are not in default fund and are aligned to your goals and to ensure you will get maximised returns for your future retirement planning.
We can look at Life, Income, Mortgage cover and or some other covers. This buys you some peace of mind if worst case should strike, tell us what you can afford, and we will package something up for you to consider.
We deliver smart results the easy way for you – we secure your next steps and keep it fun and simple plus ensure you are getting the best deal!
To find out more about what our team has to offer:
Our website: https://www.brendanom.co.nz/
Phone: 03 2149292