Services

First Home

Are you ready?

Generally there are lots of questions, such as:

  • What do I do first?
  • What sort of house can I afford?
  • How do I get the money to buy the house once I find one?
  • How do I know which bank will be best?

Buying your first home is easily your biggest financial commitment and it can be very stressful, keeping you awake, wondering if you’re doing the right thing.

We help people like yourself, get the right finance for your individual situation. It’s what we are about. Our business revolves around making sure we get it right for you regardless of where you live in New Zealand. We can help, we’re only a phone call away.

Buying a property with building defects

It pays to get a property inspection done by a reputable builder or a company that specialises in this so that you know exactly the condition the house you are buying is in.

Zoning or title issues

Your solicitor will ask you to get a LIM report which will give you all the legal details of the land the property is on. They will also check the title to make sure there are no encumbrances e.g. Getting the right mortgage structure (it’s not just about the interest rate!)

This is where Mortgage Access comes in. You need a team to help you through the whole home buying process, to have some back up when you have questions. You want to make sure you control your mortgage and not the other way around!

The first Step is to obtain a Pre approval.

It is essentially a mortgage approval subject to certain conditions being met, such as:

  • Finding a suitable property
  • Obtaining an Registered valuation (not always required)
  • A PRE APPROVAL PUTS YOU UNDER NO OBLIGATION TO THE LENDER.
Why get a pre approval?

There are huge variances in credit policy between banks in the current housing market, if you sign up to buy a house and then it takes too long to obtain finance then you could end up losing the opportunity to buy the property.

When you have a pre approval you know how much you can borrow which will put you in a better position to negotiate. Pre approvals are currently valid for 6 months, giving you plenty of time to look around for a home of your choice.

How long will it take to put a pre approval in place?

It pays to get organised in advance. From the time we receive all the necessary information we can usually obtain an approval within 3 days. However, the banks can be a bit slow from time to time, especially if the mortgage is over 80% of the property’s value. If you are borrowing over 80% allow for 5-7 working days to get an approval. It is best if you speak with us early in your house buying process!

What paperwork is required?

Step 1.
Complete an application that sets out your assets and debts, income and expenses.

Step 2.
To verify the figures we need to support the application with proof of income (usually the last 3 pay slips), proof of a saved deposit, and 3 months of bank statements.

  • In the current market every bank’s lending criteria is different.
  • In this market there is absolutely no point dealing with the bank directly because they can only give you one solution.
  • If they decline you need to start from scratch and go to another bank.
  • Every time you go to another bank they do a credit check and it doesn’t take long for it to look like no one wants to give you a mortgage.

We work on your behalf and can see from your application which bank will be a good ‘fit’ for you.

Save yourself heaps of time, time better spent looking for a new home, (much more interesting). We have worked with people who have ended up so frustrated dealing with the bank on their own behalf and who have missed out on property as a result. Since we work with the various banks on a daily basis, we know what the banks are looking for and the hooks to look out for. We are seeing a number of clients that get quite far through the process to then discover problems with finance

Can I borrow over 80%?
Yes – 95% is available again for buying a home for yourself to live it. However, if you have good income and no other debts. Also borrowing over 80% costs more. That will either be as an upfront fee by the lender (up to 2.5% of the mortgage value) or as a premium added to your mortgage rate. With the upfront fee option, it can be added to your mortgage balance so you do not need to ‘find the cash’ to pay it. If the lender includes a rate premium, this can range from 0.50% to 1.00% above standard mortgage rates, generally until your level of lending comes back in line with 80% of the ‘then’ value of the property A registered valuation will be compulsory (cost $500+). You will also need ongoing mortgage protection or income protection insurance. It simply does not make sense to be taking risks at this level of borrowing.

100% Lending
We can arrange a ‘Welcome home loan’ but there is strict criteria

First Home Buyers

  • If you are looking for 95% borrowing then you will need to be able to prove that your 5% deposit is from genuine savings. This can be proven in several ways
  • Savings in your account over a period of no less than 6 months
  • If you have been with KiwiSaver for a min of 3 years then you can use your eligible contributions (please check with your fund manager regarding your own eligibility)
  • If you can prove that you have sold a car or other asset and that the money has gone into your account and remained untouched i.e. no withdrawals
  • Every bank has their own mortgage calculators

If you are borrowing at the top end of our estimate then we suggest setting up a bank account so that your savings (+rent) equate to the mortgage repayments once you buy. That way you can gauge whether your mortgage is realistic.

It is great to get disciplined about making regular payments and to try living with your mortgage before buying.

Deposit
The more deposit you have the lower the cost of borrowing. Ideally you will have a 10% saved deposit (but we can work with as little as 5% as long as it is saved.) The other 5% can come from family gifting. Borrowing over 90% is much more difficult and much more expensive.

We don’t advise using a guarantor and most banks don’t accept guarantors these days either.

If there is no family gifting available then another option is to borrow the deposit funds from parents who may have a revolving credit facility with funds available. We would factor in the payments so that your bank is fully aware but since they’d be only lending 90% rather than 95% this will reduce your costs substantially.

Another factor is income, if you have any dependants, what other personal loans you have, Student loans etc

Can I borrow while overseas?
Non Residents can borrow up to 80% LVR but some banks still only go to 70%. The banks have fewer issues with Australians and New Zealanders or those with NZ residency but lending is available for all nationalities. The LVR may be reduced though. Do allow more time to obtain finance. It will pay to ask us to provide a pre-approval so that you can purchase confidently when you find a property. Do be aware that a pre-approval is not the same as an unconditional approval

investment property

Not sure if you are able to purchase an investment property? Would you like to know if this is a possibility for you?

Investing in residential investment property is not for everyone

  • Yes, some tenants are easier to deal with than others
  • Yes, some don’t pay their rent on time…but lots do
  • Hang onto your good tenants and treat them well and keep the property up to a good standard.
  • Good tenants are people who are paying your mortgage and looking after your property
  • If you are a first time investor I would recommend that you have your property managed professionally by a rental management company who can handle the various issues that come up.
  • Get an education about property investing so that you find out which strategy appeals to you most.
  • There is no ‘one right way’ to invest in property, Whatever one investor says not to do, another makes money and enjoys it.

We just need some basic financial details to see if you are in the ballpark to qualify to purchase an investment property. Depending on the area where you live you may be pleasantly surprised, given the lower interest rates available at present. Did you know that by owning an investment you will most likely pay less tax which in turn helps fund the property along with the rental income? Property goes up in value over the long term, even with the dips in the market place. Your $$ will be worth more than sitting in the bank while your tenants help fund the home. When we work out what you can afford then we also take into account the expected rental income. The better the property income, the more you can borrow.

It would be good to do your research so that you get an indication of the rental income you can expect for the price bracket property you are hoping to purchase. Generally you need 20% deposit to purchase an investment property. This can either be saved deposit or equity from an existing property Different areas in the country have different price brackets and property incomes. The rents can be substantially higher in one area compared to another for a similar price property.

Some investors like to have their properties reasonably close by so that they can keep an eye on them yet others don’t mind if the property is in another part of the country. If renovations are needed and you have the skills then obviously it is handier to have the property reasonably close. Alternatively the property management company will have contractors to do the work but of course this costs more. Find out how the rich make their money by making their money work for them.

It is essentially a mortgage approval subject to certain conditions being met, such as:

  • Finding a suitable property
  • Obtaining an Registered valuation (not always required)
  • A PRE APPROVAL PUTS YOU UNDER NO OBLIGATION TO THE LENDER.

Why get a pre approval?
There are huge variances in credit policy between banks in the current housing market, if you sign up to buy a house and then it takes too long to obtain finance then you could end up losing the opportunity to buy the property.

When you have a pre approval you know how much you can borrow which will put you in a better position to negotiate.

Pre approvals are currently valid for 6 months, giving you plenty of time to look around for a home of your choice.

How long will it take to put a pre approval in place?
It pays to get organised in advance. From the time we receive all the necessary information we can usually obtain an approval within 3 days. However, the banks can be a bit slow from time to time, especially if the mortgage is over 80% of the property’s value. If you are borrowing over 80% allow for 5-7 working days to get an approval. It is best if you speak with us early in your house buying process!

What paperwork is required?
Step 1.
Complete an application that sets out your assets and debts, income and expenses.

Step 2.
To verify the figures we need to support the application with proof of income (usually the last 3 pay slips), proof of a saved deposit, and 3 months of bank statements.

In the current market every bank’s lending criteria is different.

  • In this market there is absolutely no point dealing with the bank directly because they can only give you one solution
  • If they decline you need to start from scratch and go to another bank
  • Every time you go to another bank they do a credit check and it doesn’t take long for it to look like no one wants to give you a mortgage.

We work on your behalf and can see from your application which bank will be a good ‘fit’ for you.
Save yourself heaps of time, time better spent looking for a new home (much more interesting). We have worked with people who have ended up so frustrated dealing with the bank on their own behalf and who have missed out on property as a result. Since we work with the various banks on a daily basis, we know what the banks are looking for and the hooks to look out for. We are seeing a number of clients that get quite far through the process to then discover problems with finance

Can I borrow over 80%?
Yes – 90% is available again for buying investment property but only with a few lenders and there may be fees Most banks are at 80% and some at 70% unless they also hold lending over the owner occupied property in which case they too go to 80% A couple of lenders will go to 85% Also borrowing over 80% costs more. That will either be as an upfront fee by the lender (up to 2.5% of the mortgage value) or as a premium added to your mortgage rate. With the upfront fee option, it can be added to your mortgage balance so you do not need to “find the cash” to pay it. If the lender includes a rate premium, this can range from 0.50% to 1.00% above standard mortgage rates, generally until your level of lending comes back in line with 80% of the ‘then’ value of the property.

Investment property borrowing

  • Most lenders will do 80% as the norm but some are stuck on 70% unless they also have your own home and others will do 90%.
  • If there are multiple properties on 1 title then the LVR will be less, depending on the number of dwellings and the funder guidelines.

The borrower will need to be able to prove income or, if self employed, provide the last 2 years financial accounts.

Investment property borrowing

What is Lo Doc?
Often business owners and other self-employed people don’t have current financial accounts or their expenses have been very high in a particular year which means the ‘provable’ income is too low to be able to borrow money for property investment. Then there are certain types of businesses like Property Traders and full time renovators who can have issues with borrowing. The banks were really gun shy for a while with these occupations but that is changing once again. The old Lo Doc meant that the borrower could more or less put down any number for income which isn’t the same as the current Lo Doc lending. The borrower will have had to be in business for a min of 18 mths and be GST registered. One lender only needs the last month business and personal accounts and as long as the declared income is in line with the expected income for the type of business then that’s generally accepted. Max lending is to 70% LVR and the property needs to be residential and in a main centre. A valuation is required by a panel valuer so don’t just get any valuation done until you check that the valuer is acceptable to the lender.

Lo Doc rates vary according to the lender but some are not too different from standard lending rates and application fees can be minimal.

Property Traders
If you are buying and selling property regularly then there are non bank lenders who will readily supply short term finance for this purpose up to 70% but the costs are higher than the std Lo Doc product. Individual feedback is available by contacting us.

Asset lending
65% as an asset lend loan for 6 months. This is particularly useful for property trading

Can I borrow while overseas?
Non Residents can borrow up to 80% LVR in general

The banks have fewer issues with Australians and New Zealanders or those with NZ residency but lending is available for all nationalities. The LVR may be reduced though.

Do allow more time to obtain finance. It will pay to ask us to provide a pre-approval so that you can purchase confidently when you find a property. Do be aware that a pre-approval is not the same as an unconditional approval.

Selling - Ready to Sell?

There are lots of different reasons to sell & buy

Needing more space

  • Should you buy first or sell first?
  • Should you sell at all?

This is an individual decision and it is possible that:

  • Your property sells and you buy the home you are wanting to buy
  • Your property sells but someone has invoked an ‘escape’ clause which means you miss out on the proposed purchase leaving you homeless or renting for a while
  • Your property doesn’t sell so you miss out on your ‘dream home’

It’s always about the timing and sometimes it takes longer to sell your own but there is a deadline to buy the new property. Bridging finance can be available to give you time to sell your home

The new property could be rented out (if the finance can be available for this option, depending on your situation) Once your home sells you can then move. There is always a solution in the end. The timing may just not have been right and an even better property turns up or you end up being happy to stay in the existing property for unforeseen reasons at the time

Depending on your situation you may be better to:

  • Sell first, have a long settlement to give yourself time to find a suitable property knowing that your home is sold and you know how much money you will have toward the next purchase.
  • Your property sells but someone has invoked an ‘escape’ clause which means you miss out on the proposed purchase leaving you homeless or renting for a while
  • Find another home, rent it out while selling your home so that you have the next property secured at the best price. Then move into that home once you sell.

In this case it may not be your choice to move but need to because of work commitments. If you are not sure if the re location will work out then it may be worth considering renting for a while in the new location and renting out your home until you are sure.

  • It would be good to do your research so that you get an indication of the rental income you can expect for the price bracket property you are hoping to purchase. Generally you need 20% deposit to purchase an investment property. This can either be saved deposit or equity from an existing property Different areas in the country have different price brackets and property incomes. The rents can be substantially higher in one area compared to another for a similar price property.

The Positive Side is – You know you have your home to go back to.

The Negative Side – It is always harder to sell a home when it is tenanted.

Buying another home and turning the existing into an investment property
A pre approval will help you buy with more certainty and the bank will put in a condition that states the loan is subject to the sale of your property at $X.

Find another home and keep your existing one as a rental (saving you in real estate fees). Potentially giving you some great tax benefits.

Even if you don’t want to become a landlord, it may be well  worthwhile to buy another home in the current market and hang onto the existing one until prices increase (as they inevitably do). Then you can make a substantial reduction in your mortgage in the future.

This would be great time to review your financial situation!

You are most likely either:
  • Selling your current home and buying another
  • Selling your current home to yourself (perhaps as a company/trust) as a rental and buying another property to live in
IT IS ALWAYS WISE TO KNOW THAT YOU WILL BE APPROVED FOR YOUR NEXT PURCHASE BEFORE YOU SELL YOUR EXISTING HOME SINCE IT WOULD REALLY NOT BE NICE IF YOU SOLD AND THEN FOUND THAT BECAUSE YOUR CIRCUMSTANCES HAVE CHANGED IN SOME WAY, THAT YOU DON’T QUALIFY FOR AS MUCH LENDING AS YOU THOUGHT. Why get a pre approval? There are huge variances in credit policy between banks in the current housing market, if you sign up to buy a house and then it takes too long to obtain finance then you could end up losing the opportunity to buy the property. When you have a pre approval you know how much you can borrow which will put you in a better position to negotiate. Pre approvals are currently valid for 6 months, giving you plenty of time to look around for a home of your choice. How long will it take to put a pre approval in place? It pays to get organised in advance. From the time we receive all the necessary information we can usually obtain an approval within 3 days. However, the banks can be a bit slow from time to time, especially if the mortgage is over 80% of the property’s value. If you are borrowing over 80% allow for 5-7 working days to get an approval. It is best if you speak with us early in your house buying process! What paperwork is required? Step 1. Complete an application that sets out your assets and debts, income and expenses. Step 2. To verify the figures we need to support the application with proof of income (usually the last 3 pay slips), proof of a saved deposit, and 3 months of bank statements.
First Home Buyers
  • If you are looking for 95% borrowing then you will need to be able to prove that your 5% deposit is from genuine savings. This can be proven in several ways
  • Savings in your account over a period of no less than 6 months
  • If you have been with KiwiSaver for a min of 3 years then you can use your eligible contributions (please check with your fund manager regarding your own eligibility)
  • If you can prove that you have sold a car or other asset and that the money has gone into your account and remained untouched i.e. no withdrawals
  • Every bank has their own mortgage calculators
If you are borrowing at the top end of our estimate then we suggest setting up a bank account so that your savings (+rent) equate to the mortgage repayments once you buy. That way you can gauge whether your mortgage is realistic. It is great to get disciplined about making regular payments and to try living with your mortgage before buying. Deposit The more deposit you have the lower the cost of borrowing. Ideally you will have a 10% saved deposit (but we can work with as little as 5% as long as it is saved.) The other 5% can come from family gifting. Borrowing over 90% is much more difficult and much more expensive. We don’t advice using a guarantor and most banks don’t accept guarantors these days either. If there is no family gifting available then another option is to borrow the deposit funds from parents who may have a revolving credit facility with funds available. We would factor in the payments so that your bank is fully aware but since they’d be only lending 90% rather than 95% this will reduce your costs substantially. Another factor is income, if you have any dependants, what other personal loans you have, Student loans etc Can I borrow while overseas? Non Residents can borrow up to 80% LVR but some banks still only go to 70% The banks have fewer issues with Aussies and New Zealanders or those with NZ residency but lending is available for all nationalities. The LVR may be reduced though. Do allow more time to obtain finance. It will pay to ask us to provide a pre-approval so that you can purchase confidently when you find a property. Do be aware that a pre-approval is not the same as an unconditional approval

Get in Touch with Us

We know about all the curveballs the mortgage process may throw at you.
Property is one of the largest investments you will make and helping you through the process is what we do best….more than just organising a mortgage!