FAQ’s for Mortgages
Once we submit the application it generally takes between 3 to 5 working days.
We will give you a list of things that you need to bring in. If you’re doing a loan, with 20% deposit, we generally need three pay slips, some ID, confirmation of deposit and you can print some bank statements out when you’re here if you are applying for a Welcome Home loan. There are other documents the bank need and we will give you a list of those before you come in.
Yes. I can see you after 5 o’clock. We try and be flexible and work in with you on what may suit; however these times are popular, so we suggest booking in advance.
Yes. We deal mainly with two non-banks and would only look at these as an option if we cannot match you to a trading bank. For example – if you had a credit check issue, then we may have to look at a non-bank.
I feel this should be called a conditional approval as normally these are still subject to the bank checking the sale and purchase agreement or perhaps waiting on a copy of Housing New Zealand approval. If a valuation is required it is also conditional to the bank being satisfied with that valuation (to ensure that there is not a lot of maintenance etc. needed on the property). Whilst a pre-approval gives you the confidence to be able to go out and look for a property, you still must however put in “subject to suitable finance” and any other conditions you require. Talk to us or your solicitor before making an offer to discuss what conditions you may need to put in.
Normally 2 to 3 months. After this time, if nothing has changed, we can resubmit to the bank with some updated pay slips.
Yes. As the banks want that type of business, they are more lenient on what you can borrow when you have 20% deposit.
That depends. Can you afford to pay off your debts and afford the loan repayments as well as the rates, house and contents insurance and any life or income protection cover?
We can give you all the facts and figures and you can decide what you’re comfortable with doing.
Firstly, let us know ! so that we can do a credit check – then we can discuss the outcome of that. There can be a lot of variables to this answer, therefore we would look at case-by-case with each client.
Kiwisaver is a government scheme many people pay into towards retirement or buying their first home. If you have been a member for three years or more, you may qualify to take out most of your Kiwisaver towards buying first time.
Housing New Zealand is a separate grant which is calculated by the amount of payments you have made into the scheme. For example; if you have made 36 monthly payments (one payment is counted for each month – even if it is paid out of your wages weekly or fortnightly) then you may be able to qualify for a $3000 grant. If you have made 48 months’ worth of payments, then your entitlement goes up to $4000 and lastly, if 60 months’ worth of payments, the maximum is $5000. There are some terms and conditions for this grant, which we can advise you about. The condition of the Housing New Zealand grant is that you must live in the property for at least six months.
This depends – generally if you have less than 20% deposit then you can’t, if you have 20% deposit then you may be able to.
If you have 20% deposit many times we can get you some cash back from the bank which will cover some of those fees, however it is paid out after settlement, and the lawyers want their money a day or two before settlement.
There are some terms and conditions for the cashback that the banks offer.
Many things. Firstly, we’re honest about whether or not we think you could get a loan based on the client enquiry information you supplied. We do some investigations behind the scenes and crunch some numbers firstly to see what we think, then one of us would give you a call and discuss either making an appointment, or a possible plan to get you where you need to be before coming in to see us.
We will also look at any debt consolidation if you’re paying high interest on your current debt, we will apply for your Housing New Zealand grant’s, and apply to the bank or banks I recommend, for the preapproval.
Also, we tell you what we need to do, when we need to do it and orchestrate the timeframes for everything, so you don’t have to do much.
We will discuss the loan structure, help with some recommendations for setting up new bank accounts, order your valuation if required and basically ensure everything goes smoothly. We keep in contact with your lawyer and work with them as/when required, so that everyone is on the same page.
Depending on where we think you’re most likely to be successful will determine which bank or banks we will send your application to. I will give you my recommendations and ask for your opinion on these which we can discuss at our appointment. Sometimes it works out to be your own bank and sometimes it’s another bank; sometimes it is a couple of banks.
FAQ’s for Welcome Home Loans
You need a minimum of 10% deposit and you must qualify based on your income and any debt levels to meet the banks criteria. You also need to have excellent credit history and good account conduct, as well as good conduct on any debts you have.
The banks we deal with are Westpac, SBS bank and the Co-operative bank.
In Southland it is $400,000 for existing properties. Please note there is a land size restriction. In most cases the land has to be less than 1 acre and usually on one title only. If you are building or buying a brand-new house that has recently had code compliance you may be able to go to $450,000 (the maximum price for new builds).
Yes. $85,000 or less gross (before tax) for one person or $130,000 for two. This is based on your LAST 12 months income- not the last financial year!
No. The banks all lend on the purchase price or the valuation – whichever is the lower of the two.
We will discuss that with you as the bank might need a quote on what has to be done. The quote must be done by an independent builder and you must have the funds to remedy the repairs soon after settlement. As, if approved, this would be part of a special condition. If the valuation quote comes in over $5000 difference – then it will be an automatic decline by the bank as the property is not suitable under the “Welcome Home Loan” umbrella.
At least 12 months or have been employed in a similar role for the past two years.
Yes, or permanent resident with no travel conditions
Yes. All Welcome Home loans must have a registered valuation where the valuer inspects the property and will make a decision on what they think the value of the property is, based on the sales in the area. They will also comment on any maintenance issues in their report.
FAQ’s for Insurance
No. We can refer you to Tower Insurance if you would like.
Life insurance enough to cover any debts, mortgage, funeral and perhaps a lump sum for family and some income cover if they are off work due to accident or illness and if affordable a lump sum of Trauma (this cover critical illnesses for example Cancer, Strokes, Heart attacks and many more).
Whatever you can afford, we work within you’re budget! (If you are overweight or have health issues it may cost more, we can give you an idea of that once we ask you some health questions).
You deal with us! We don’t just put it in place we look after you and guide you through claims and reviews.
It is case by case as there can be risks in changing as when you took your initial cover out you may have been in good health and since then your health may have changed so you need to be careful, we will give you advice and options then you can make an informed decision.
We look at their financial strength rating, claims history, policy wording, costs etc.
We can give you direct contact with the person at insurance company we understand some things are sensitive that is no problem.
FAQ’s for my services
Generally, not when you go through us. As a broker we get their application fee waived. However, if we are dealing with a non-bank there will be a fee. We would advise you of this before the appointment.
If you have 20% deposit in most cases, there is no fee.
If you have less than 20% deposit, we charge a $250 fee. However, we do all the homework before we assess if you have a good chance of getting a home loan – for free; and we would only charge a fee after our appointment and before we submit to the bank.
If you are building a house or your loan requirement is $100,000 or less – there is a fee. You can request a copy of our engagement of services form or we can advise you of this once we have assessed your client enquiry form so that there is never a surprise.