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Meeting finance when there are still outstanding conditions

Meeting your finance clause is one of the most exciting parts of the process in buying your next home. Not only do you have the money ready to go, but you're more often than not also meeting your other conditions which means you're ready to confirm that you're on your way to being a home owner!

I'd like to explain a little bit about that final part of the finance process and it all fits together. In some cases there will be remaining conditions to meet, but most of the time these are providing evidence of something we've already completed, or filling in some forms.

Here are a few common conditions that might be remaining on your loan offer on unconditional day;

  • Tax forms - these are called GATCA Forms, Tax Residency Self-Certification forms or Individual Customer Foreign Tax information form. These forms give information to the bank and to the IRD regarding your tax status, and confirm in which countries you are paying tax. They are largely to stop individuals from neglecting to pay tax and are a formality which we usually complete prior to settlement.
  • Closing a Credit Card, Personal Loan or other existing debt. This is common for home buyers, and is often a good way in which to free up serviceability for a new home loan. Often we have discussed these already and you might have already completed the payment. The key thing here is to ensure that you have the money to make this payment
  • Remaining deposit funds - Kiwisaver, etc
  • Boarder income
  • Valuation

One of the best things about having a mortgage advisor is that we are here to put your mind at ease and to make sure you know exactly where you are throughout the process. Get in contact with the team at My Mortgage today to get an application underway!