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Getting your low equity margin removed.

When you get a home loan at more that 80% Loan to value ratio (Find out more about LVR's here) the banks charge you a bit extra for the privilege of borrowing that money when you have a smaller deposit. Not that nice of them but the reality currently! The banks do this in one of two ways:A low equity marginA low equity premiumLow Equity MarginThis is an additional percentage added to your interest rate that stays added until you get your loan to value ratio to below 80%. For most banks, thi...

February 23, 2021

Should I really be repaying debt?

Recording this video goes against everything I've said in my 14 years as a Mortgage Broker but I think it's a fair question worth asking.I've always been a fan of repaying debt as it sets you up to take more opportunities in future and give you financial security. However, with interest rates being so low the question has to be asked about whether you could be investing in more property or other investments to give you a return which is greater than what you're paying in interest.To bo...

January 26, 2021

Buying a property at auction with less than a 20% deposit

With the property market as hot as it is, a lot of properties are being sold via auction and understandably so. We are hearing of great prices for people selling their properties at auction. However, auctions can be emotionally stressful and there are a few more things to consider, especially for people who have less than a 20% deposit, which are normally first home buyers. ...

January 26, 2021

Should I be floating my loan?

This is a really good question to be asking at the moment and it's one that plenty are... Rates are dropping so there's merit in the discussion around floating and waiting for a better rate. Perhaps you've had a loan come off fixed and it's just sitting there waiting for you to make a move? The reality is that it doesn't really make sense to have a loan on floating at the moment Why?   Mainly because the gap between the floating rates (mid 4% range) and short term fixed rates (under 2....

January 26, 2021

Do you really need 40% to buy a rental property?

So you're looking to buy your first (or next) rental property? You might be feeling some FOMO that the major banks have decided to take matters into their own hands and pull back the Loan to Value Ratio requirements for rental properties - broadly these are now sitting at a 40% deposit across the board, and I've had several emails from investors who feel they've been shortchanged by the short 4-6 month window where they could buy rentals with 20% deposit. But - there is one slightly less well-kn...

January 26, 2021

Getting a home loan when you're on one income

Buying a new home on one income either as a single person or when you or your partner are not working can feel really difficult but there are ways to make things work and things to consider. ...

January 12, 2021

Why we don’t often suggest splitting your fixed rates

I'm going to throw a cat amongst the pigeons of conventional wisdom here but I'd like to put it out there that I'm not a fan of splitting your fixed rates by fixing over different terms.What is this that you're talking about, Adam?There is an long held belief in some parts that you should fix your lending for different terms.  Say if you had a $500K mortgage you might fix $100K for 12 months, $200K for 2 years and $200K for 3 years.The theory is that you are insulated from any rate inc...

October 20, 2020

The gap between fixed and floating rates is increasing

The gap between the fixed and floating rates are increasing and if you've got a floating rate this means you're paying considerably more in interest, which ultimately means you'll be paying off your mortgage for longer (and making the banks more money!) Who does this affect? If you've got a home loan floating then this is definitely having an effect on you.   If your lending is $250,000 and you're paying 2% higher (difference between floating and 1 year fixed) then that's costing you a...

September 30, 2020

Splitting your investment and personal home lending across different banks

If you're a property investor then this is a key financing strategy that you should be considering.  The right mix is different for everyone but we're here to help give an objective view of the bank's lending options that will suit your needs and goals. What are the benefits to splitting your lending across different banks? There are 3 key factors Insurance against policy changesLimiting your treatment as a commercial investorThe right bank product for the right scenario  Policy change...

September 18, 2020

Banishing Short Term Debt forever...

Every single day, as a Mortgage Broker, I say to myself “I wish more people understood debt and how to beat it”. People contact me to buy their first home, and at least 50% of the time either their capacity to borrow is significantly lessened by their existing debt. Or, they are unable to borrow altogether because their total debt is actually more than their deposit overall and the banks are just unable to lend them money until they pay off what they already owe....

August 19, 2020

Using KiwiSaver for your unconditional day deposit?

For many first home buyers, their KiwiSaver forms a large part (some if not all) of their deposit for a home, and we are frequently asked the question as to how this can be used to pay their deposit on unconditional day. Firstly - for the difference between your overall deposit and the one you pay via your Sale & Purchase Agreement - check out our blog here  So let's debunk some myths - KiwiSaver can be used to pay your deposit and is regularly used as such. However it does mean you need to...

July 30, 2020

Building & Renovation Mortgages - How it all works - Construction Lending Part 1

This is the introduction video into a series all about construction lending and all the ins and outs of it. In this series Greg covers house and land package and turn key builds, fixed price contract finance, owner managed and kit set build home loans, transportable, relocatable and tiny home finance and finally we have a video about the most frequently asked questions we get asked about residential construction lending. Construction lending can be difficult to understand and breaking it do...

July 26, 2020

House & Land Packages & Turn Key Homes - Construction Lending Part 2

Turn key build and house and land packages both very similar. So let’s start with house and land packages. ...

July 25, 2020

Transportable, relocatable and tiny homes - Construction Lending Part 4

These are three types of builds that are becoming really popular obviously as there’s a lot of efficiency (financial, time and environmental efficiencies) that can be made when things are built off site, in a specific location where they’re meant to be built. The builders and other tradies are all in one place together and they can do lots in a much quicker period of time. It is a way to get a really cost effective house on to site. The main consideration from a lending point of view is that...

July 24, 2020

Fixed Price Builds - How do they work?- Construction Lending Part 3

Fixed Price Contracts are the most common way we see people building new homes. The way these types of builds work is that you’ve found a piece of land, maybe a smaller section, maybe you subdivided, maybe you found a lifestyle block and then you’re getting a house designed and built for you on that piece of land.  The design could be done by an architect, drafts person, or quite common now is a building company that have already got plans that can be modified it for you or they have pe...

July 24, 2020

Self Managed Builds & Kit-set - Construction Lending Part 5

So a self managed build is that you as the home owner organise all the tradies; the builder, the plumber, the electrician, the roofers, the painters, everyone individually to come and build your new house for you. Now although you can, at times, save money in those kind of situations but going around and finding the best deal and demanding certain products etc, if you don’t have previous experience in construction or project management and you haven’t got everything lined up and ready to go,...

July 23, 2020

Building & Renovation Lending Frequently Asked Questions - Construction Lending Part 6

If you’re building a house and you’re not living in it while you’re building, you will need to be paying rent or your previous mortgage while that house is being built in a fixed price contract. However, one while you're building the home, you’ll only be paying interest on the amount of lending you have, not the principal and normally with the fixed price contract you’ll be accessing funds a little bit at a time throughout the build. So initially you may have a very small home loan for...

July 23, 2020

Options to not be homeless when you're selling & buying

Anyone who has sold a home to buy (or build) another will attest to the fact that it can be stressful working out where you're going to live in between times if you're not fortunate enough to settle the properties on the same day. With this in mind I thought I'd take a more in depth look at the options you have from most common to pretty obscure!...

July 20, 2020

What do banks look at for self employed income & why?

Being self employed is a great option for many people and can give freedom in a lot of areas of life. It can also mean a few more challenges, and a question we often get asked is "Why is it harder for self employed people to get mortgages?" Well, the answer is it isn't actually "harder", but there are just a few more things to consider for the best chance of approval depending on your situation...

June 24, 2020

Buying your first investment property

You’ve bought your first home and you’re absolutely stoked. A place to call your own, an excellent and well set up home loan and a financial plan for the future. With the Reserve Bank removing the LVR restrictions on main banks, now may be the best time possible to buy your first investment property. ...

June 8, 2020

Can I use my KiwiSaver if I've owned a home before?

In recent years, KiwiSaver has become a great way for first home buyers to save for a home, and almost all our first home buyer clients include KiwiSaver as part of their depsoit.But what about if you've owned a home before? Does that mean you can't withdraw your KiwiSaver?If you meet a couple of simple criteria, and if you haven't used your KiwiSaver for the first property you bought, then you should be eligible to withdraw it for your "second first home!"The key is in being "in the same positi...

May 21, 2020

Yay, you're pre approved! What's next?

The hard work for your home loan is now done – the bank wants to lend you money! Now there are only a few key things left to do; Find the right house and make an offer – talk to us about including a finance condition and a Registered Valuation if needed and check out this blog about conditions to put in a Sale & Purchase Agreement and what the terms meanMeet the conditions on your loan offer – we’re here to explain and tick these off for youFinalise your structure and how you’re going ...

May 13, 2020

Who are you going to buy with?

For most first home buyers, at least two people being involved will open up a heap of options for you, unless you have a very significantly high personal income or a very good deposit. So plenty of mix and match options here....

May 6, 2020

What type of "Advice" can you get from a mortgage broker?

You’re absolutely smashing it. You’ve got your pre-approval, have made an offer and met all the conditions on your agreement. Now it’s time to confirm your agreement unconditional, and BOOM - you just bought a house, and the fun starts!...

April 29, 2020

Where did all my money go??

About three weeks ago I got a call from a first home buyer I had pre-approved – and the first thing she asked me was “Do you know where all my KiwiSaver money has gone?”Unfortunately I didn’t have the answer she wanted to hear but I could explain what had happened – and run through how to be ready and ensure your house deposit isn’t eroded away by a sneaky virus called Covid-19!In recent months with the Covid-19 pandemic sweeping across the world, investments in general have taken a ...

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