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Westpac 0% 'Greater Choices' Home Loan - Everything you need to know!

Exciting news is here as Westpac launches and expands their 'Greater Choices' home loan product. Formerly known as the Westpac 'Warm Up' loan...With a new maximum loan amount of $50,000, this offering aims to assist customers in creating a more comfortable, sustainable, and energy-efficient home life. By providing interest-free financing for five years, Westpac is committed to helping individuals transform their living spaces into warmer, drier, healthier, and more eco-friendly environments.Wha...

Buying with Less than a 20% Deposit - What are the options in 2023?!

Purchasing a home is a significant milestone in many people's lives. However, securing the right financing option can often be challenging, especially for first-time homebuyers or those with limited savings. In New Zealand, two popular choices for aspiring homeowners are the First Home Loan Scheme and applying to a bank for a high-LVR (Loan-to-Value Ratio) home loan. But what other options are there? In this article, we will delve into the key differences between these two options, shedding ligh...

RBNZ changes - 1 June 2023

After a bit of a rocky year for policy, with the CCCFA and lending restrictions providing challenges to banks and alternative lenders alike, we've finally had some reprieve with the RBNZ making some small changes to LVR (Loan to Value Ratio) limits on the 1st of June.These changes were welcomed by the banks and customers alike, so let's break that down and what it means for you;...

Co-Ownership - Buy with a friend or family member!

Over the last year as interest rates have risen along with the 'test rate' which banks use to assess your ability to service a mortgage we're finding we are having more conversations with clients about the levers we can pull to increase the amount they can borrow.One of those levers is 'co-ownership'...Or put simply buying with a friend or family member. You may have seen ads on TV about this recently and it's something we are doing more and more of - people are partnering up with friends, sibli...

Should I use cash first or get a home loan lending to buy a section?

So you're buying a section and then looking to do a house build, build a shed to live in or move a dwelling onto the property. You may be wondering whether it's better to use your cash or take out a home loan. While using the cash for the initial purchase may seem like the easiest and most straightforward option, there are a few reasons why getting a home loan may be the better choice....

Five things to think about when your home loan is coming up to its fixed rate rollover

For a long time now, it seems as if the Kiwi approach to refixing mortgages has been to simply refix at the lowest rate available at the time of rollover - Normally the 12 month rate! At a time when interest rates were going down, this may have worked pretty well for most people...But as we all know, that's not the case  so it's absolutely worth thinking a bit more about how you're going to refix and getting some advice from your mortgage adviser!Here's five things we, as mortgage advisers,...

Why can't I borrow as much as I want from the banks?

If you're in the market for a home loan, you might be surprised to find out that currently, the amount you can borrow from the banks is less than what you had in mind. There are several factors that contribute to this, but one of the main ones is the test servicing rate.The test servicing rate is the interest rate that banks use to assess whether you can afford to repay a mortgage, based on your income, expenses, and other debts. The Reserve Bank of New Zealand requires banks to use a higher tes...

Can an Uber driver get a home loan in New Zealand?

If you're an Uber driver in New Zealand and you're looking to obtain a home loan, you may be wondering how banks will treat your Uber income. The good news is that many banks in New Zealand are open to considering Uber (and other ridesharing income for that matter!) as a source of income when it comes to home loan applications. However, there are certain criteria you need to meet in order to be considered for a home loan based on your Uber income.First and foremost, it's important to understand ...

Stop stressing about your 'credit score'!

It's so common for us to hear people talking about their 'credit score'...So, does a credit score really matter and what's it all about?!In New Zealand, credit scores are not as important as they are in the United States when it comes to obtaining a home loan.Unlike in the US, where credit scores are a major factor in determining whether or not a borrower is approved for a loan and what interest rate they receive, in New Zealand, banks and other lenders take a more holistic approach to assessing...

Top 10 Home Loans Myths - Debunked!

As mortgage advisers, we often hear and see information out there that is just not true! There's so much information available these days and it seems that what might be true in other parts of the world, aren't necessarily true in New Zealand. So...a quick list of myths we commonly hear and the truth behind them below!Myth: You need a 20% deposit to get a mortgage.Reality: While a 20% deposit is ideal, you can still obtain a mortgage with a smaller deposit, such as 10% or even 5%. There are...

Home loans for energy efficient upgrades and electric vehicles

Since 2021, all 5 of the main New Zealand banks have brought out home loan products specifically for energy efficiency and helping make New Zealand homes warmer, dryer, and heathier. Some banks have also extended these to be for energy efficiency in other ways too including solar panels, home batteries, and even electric vehicles.Let's go through them at a high level  and see what might be right for what you are wanting to do:...

Making an offer - what do these terms mean?

Making an offer on a property is one of the most exciting parts of buying a home. You've found a place you love and you just want to move in - but first there might be a bit of negotiating and that huge long legal document we call a Sale and Purchase Agreement, which we'll talk about here today.  Let's break that down for you and explain what all these terms mean;...

The Saturday Adviser - What's that all about?!

Introducing "The Saturday Adviser" by My Mortgage: Your Weekend Mortgage Adviser with AdamAt My Mortgage, we're dedicated to making the mortgage process as simple and stress-free as possible. That's why we're excited to introduce "The Saturday Adviser" by My Mortgage. We understand that it's not always easy to take time off work during the week to meet with a mortgage adviser. That's why we're offering appointments with Adam, our expert weekend mortgage adviser, via zoom on Saturdays.During...

Compounding Interest - How to make it work for you?

The cool thing about the concept of compounding interest is that it’s pretty simple and it’s an easy thing to take advantage of if you’ve got the capacity and desire to do so.Brief explanation below…The bank charges interest on your loan balance daily, then bills you for that on a weekly/fortnightly/monthly basis.So if you have a $100,000 loan and get charged 5.2% interest that’s $5200/yr, or $100/wk.At the end of week one you’re then getting charged interest on $100,100, so at the e...

How to Help Ease Mortgage Repayment Pressure

When it comes to reducing the cost of your mortgage, there are several factors that you need to consider. The following points will help you identify where you can save money on your mortgage. Check your loan term - with interest rates having been at historic lows over the past few years following Covid-19 and a hot property market, many of our clients increased repayments (or the portion of their repayment allocated to paying back principal) and hence have been paying more than the mi...

Cash Contributions/Cashbacks - What are they?

When you apply for a new home loan with a bank, they may offer you a cash contribution as an incentive to choose their loan product. A cash contribution is a sum of money that the bank will give you if you take out a loan with them, and this amount can vary depending on the bank and the loan type you choose.The cash contribution is usually a lump sum payment that is paid directly to you, and it can be used for a variety of purposes. You may choose to use the money to pay for expenses associated ...

Making offers on a new property - How, when and how much?

This episode is all about making offers on a property! What’s actually involved when making an offer on a property and creating a sale & purchase agreement.Conditions - what they are, and some of the most common types; including finance, LIM reports & building reports. We also touch on some less common clauses like meth tests and solicitors' approval.How deposits work with sales and purchase agreements.The timeframes you need to consider for all conditions and clauses.What you need to ...

Buying into someone else's property - you partner, family or friend.

This episode is all about buying into someone else’s property!We outline:The different situations where you might want to buy into someone else’s property - such as a partner's property and family property.How to establish the value of the property in question, which kind of valuers you need, and how we can make good educated guesses for an initial number.What do you need to do to use your KiwiSaver and First Home Grant to purchase the property, and what happens if the property needs renovat...

Townhouses and Turnkey builds as your first home

This episode we talk about townhouses and turnkey builds - what they are, how they’re different from other builds, and how to fund them! We discuss:The difference between townhouses, duplexes, and apartments, and what turnkey means. How turnkey properties are different from a house and land package or standard build.How you source your deposit, including specifics of the first home grant. How much you’re bringing to the purchase vs how much the bank is bringing, and new build exemptions.Time...

From unconditional day till settlement - What happens?

This episode if all about the process from unconditional day to settlement day, some of the terms we use and decisions you’ll have to make to ensure your home loan works for you. We discuss: The importance of getting the right loan structure - we explain table loans, interest-only loans, floating interest rates, and touch on revolving credits.Interest rates, and how you can plan for different rates based on your financial circumstances.Cash-backs - some warnings and advice, what most people d...

First Home Partner - get into your first home quicker!

First Home Partner is a shared ownership scheme to help aspiring first home buyers whose deposit and home loan aren’t quite enough to buy a home that meets their needs, purchase a home together with Kāinga Ora.The way this works is that Kāinga Ora bridge the gap up to 25% of the value of the property, or up to $200K, whichever is the lower amount. You will need to meet the lending requirements of a participating bank to receive a home loan (we can help with that!) and be able to co...

Once my loan is pre approved, what do I need to know?

In this episode, we talk about all the bits and pieces you need to know once you have a home loan approval. We get into:What a mortgage actually is - what a lawyer/solicitor does, security, the difference between a mortgage and a home loan, and what ‘freehold’ means.Title types - some of the most common legal descriptions for property (freehold, cross-lease, unit title & apartment), including examples of each and an explanation of body corporate fees.Some of the issues that might come up...

How to get a first home loan approval?

In this episode, we talk about how to get a home loan approval. We cover:ServicingTest Servicing RatesWhat the bank needs so much information!The difference between banksFind Podcast here...

First Home Buying team - Who do you need to help buy your first home?

In this episode, we outline the different people that make up your home-buying team! We break down who you need, and what they do:Mortgage AdvisorsA Solicitor or lawyerAn AccountantReal Estate AgentsA Registered ValuerA Building inspectorAn Insurance ExpertFind Podcast here...

The First Home Loan, LEM's and LEP's, Valuations, Servicing requirements & the factors that influence agreements

In this episode, we cover what you need to know if you’ve got less than a 20% deposit for your home loan. Including:The criteria for the First Home Loan.Some of the general principles and policies around ‘over 80% lending’.The meaning of low equity margins and premiums, the difference between them, and how much should you expect to pay.Registered valuations, how they work, and what it means for how much the bank will loan you.How servicing requirements change depending on your deposit amou...