First Home Buyer
Am I eligible for a First Home Loan?
First Home Loans allow low deposit (<20%) borrowers to access the lowest special interest rates ( avoiding low equity margins) and best offers with certain banks affiliated with Housing NZ (Kainga Ora).
Eligibility criteria includes:
- The number of buyers and whether applicants have dependents.
- Whether you have owned property previously, a second chance exists if you meet asset cap requirements. A minimum of 5% deposit. Employment stability and history.
How much can I borrow?
Approaching your current bank, completing an application based on your current state, and relying on them for your house price budget to purchase your first home can result in a narrow view and limit your options. If this has happened to you, please get in touch. Our team will assess your options across 25+ lenders and discuss options to improve your borrowing capacity, including:
- Reducing credit card limits.
- Paying off your Student Loan.
- Closing Buy Now Pay Later accounts.
- Living with boarder(s).
All these changes can add up to borrowing $100,000s more compared to a current state view from one bank. Get in touch with Mortgage Money today if your experience with your current bank has put a stop to buying your first home.
Getting a Pre-Approval
A mortgage Pre-approval confirms the budget for your home search. Knowing the maximum loan amount you are eligible for helps you focus on properties within your price range, saving time and effort.With pre-approval, you are seen as a serious buyer by sellers and real estate agents. This can give you an advantage in competitive markets, as sellers may prioritize offers from buyers with pre-approved finance.
Pre-approvals typically last for 90 days, and extending them for a further 90 days is fairly straightforward. Something to be aware of when it comes time to renew your pre-approval is that the bank's policies and lending criteria may have changed since you last applied.This is why it's important to check in with your Mortgage Adviser if you haven't managed to find a suitable property and it's getting close to your approval expiry date.Things such as the banks stress test rates could have changed which means your borrowing amount could be affected, or certain banks may have turned off the tap for issuing pre-approvals as they may be approaching their limit for low deposit lending.
Another thing to note about pre-approvals is that they are a “conditional” approval.It doesn't necessarily guarantee that you will get the loan or the property you are wanting to buy, so it's important to understand that there are two parts to a pre-approval.
- The first part is approving you (the borrower) and your ability to afford and service the proposed loan.
- The second part is approving the property (the security) and its suitability for the proposed loan.
- That's why you will find a pre-approval is always “conditional” in most cases, upon the bank approving the second part, which is the security property on offer.
It’s this part that needs special attention, especially if you are a low deposit borrower and the bank requires a registered valuation (RV). You need to make sure to leave enough time for the RV to be done, so make sure you discuss this with your Mortgage Adviser when planning to make an offer on a property.
Next Home Buyer
Thinking of selling?
Are you already on the property ladder and looking to make the next step?
Whether you are looking for more bedrooms, a larger section, or a subdivision project, we have helped many clients realize their next property. There are many challenges, issues, and emotions to navigate, and we have seen all of it at Mortgage Money. We can help simplify and place structure to your process.
- Smash Complexity
- Preapproval for your next step so you know what offer you can accept on your property for sale
- Equity
Refinancing for Home Owners
Refinancing to a different bank with more flexible early repayment terms can allow you to pay off your mortgage faster and save $10,000s in lifetime interest costs. Click here to try our Mortgage Calculator.
- Benefit from lower interest rates if they’ve fallen since your original loan.
- You will be able to switch from a floating to a fixed-rate loan, offering a more predictable monthly payment structure.
- Refinancing also provides an opportunity to review your other financial goals: do you need to consolidate other short-term debts with high-interest rates or top up your existing mortgage for house improvements?
- Before committing to refinancing, the team at Mortgage Money will provide a detailed assessment of benefits and costs (e.g., break fees, legal fees) to ensure you make the right choice.
Business Owners and Self Employed Borrowers
If you’re a business owner or self-employed, there have probably been occasions when it felt like you were pulling teeth trying to explain your financial situation to a banker or broker.
Not all financial advisers are created equal, and the team at Mortgage Money have huge amounts of experience when it comes to commercial lending and running businesses.
- We have relationships across all levels of the banks and can slot you into the right relationship team.
- We can work with your accountant to help you achieve tax efficient ownership structures.
Property Investors
With careful planning and expert guidance, you can leverage the potential of real estate to build wealth, create income and secure your financial future. At Mortgage Money Financial Advisers, we are here to help you navigate the world of property investment and turn your dreams into reality.
Property investment can be a great way to set yourself up for financial freedom, but growing a portfolio takes time and energy. Whether you’re looking to buy your first or tenth investment property, accessing the right advice and developing a sound investment strategy is critical. Our team keeps up-to-date with the latest policies affecting investors and can show you all your options to make it feasible.
Buying Your First Rental Property
Using equity in your current home to buy your first investment property can be a daunting experience. Mortgage Money Mortgage Brokers have many years of personal experience with property investment and are happy to coach you through the process of purchasing your first rental.
One of the key elements to any investment is investing in what you understand. Mortgage Money advisers can help with understanding important property investment concepts and work with you to provide clarity on your investment goals. We can also introduce you to other local professionals such as accountants (tax deductibility and Bright-Line Test) and lawyers to ensure you are informed and your lending is structured appropriately for your wider financial goals.
From a lending perspective, rental property loans have different requirements than primary home mortgages. Mortgage Money advisers have an in depth knowledge of investment property lending, including Loan to Value (LVR) and Debt to Income (DTI) criteria.
Before targeting specific properties and spending time visiting open homes, we generally recommend arranging a pre-approval to confirm how much you can borrow and spend on a rental. This will help speed things along for final approval and put you in a better position when making an offer on a property. Property investment can be a great way to set yourself up for financial freedom, but growing a portfolio takes time and energy. Whether you’re looking to buy your first or tenth investment property, accessing the right advice and developing a sound investment strategy is critical. Our team keeps up-to-date with the latest policies affecting investors and can show you all your options to make it feasible.
As an investor, you want to start by assessing what it is that you want to achieve from your investments and use this to set purchasing rules. As an example, this may be trying to purchase the properties at a certain discount to what you believe the property to be worth and also a certain return. We recommend that investors set their return goals based on net yield (annual rent minus rates and insurance costs divided by purchase price) rather than gross yield (just the annual rent divided by the purchase price).
Multi Property Investors
If your goal is to buy multiple rentals, Mortgage Money advisers can help structure your financing to maximize borrowing power and keep debt-to-income (DTI) ratios favourable.
Having your entire investment property portfolio with one bank can have advantages such easier admin and more negotiating power for refixes. However, for many multi property investors, the ‘one bank trap’ can mean less flexibility if you are planning to borrow more or pay off debt.
If you are an existing property investor, we are more than happy to review your current lending structure to ensure it is fit for purpose for your financial goals.
"Straightforward and swiift in finding solution"
I was happy work with Adele, she is straightforward and swift in finding solution, flexible and always available.”
- Jan Picha
Get in touch for tailored mortgage advice and support
We have four offices based in Nelson, Stoke, Richmond and Motueka. Give us a call at your closest branch, or contact us directly. We look forward to hearing from you.
Nelson
03 546 9270
60 Rutherford Street
Stoke
03 547 2980
506 Main Road
Richmond
03 544 2970
203 Queen Street
Contact
enquiries@mortgagemoney.co.nz
03 546 9270
Nelson Marlborough Mortgage Services Ltd.
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