On your loan offer you will see some conditions that need to be met before the bank will confirm the lending of any funds to you. Here are a few of the “standard” conditions and what they mean:
- First Home Buyers Conditions
KiwiSaver Confirmation - The bank wants confirmation of what funds you have available in your KiwiSaver, and that you are allowed to access them to buy a first home. You can get this confirmation from your KiwiSaver provider by calling them directly - they’ll send you approval in the form of a letter.
Registered Valuation - At times, the banks will want a registered valuation for the property. This is most common if you have a less than 20% deposit. As above, we will organise the valuation for you.
Fixed Price Build Contract - Builds carry more risk for banks and so they want to know all of the details for the build to make sure everything will be completed as expected. The contract shows the cost of the build and what will and will not be completed as a part of this process.
Build Plans & Specifications - These show the bank that what is being built will be worth the end value when completed and that the dwelling meets their policies in terms of size and location etc.
Council Consents - The banks need to see that you have the council consents approved for the build before they will give you access to funds for the build.
Registered Valuations - Most lenders will require valuations before the build begins to ensure that the value on completion will meet their requirements and then also a valuation at the end of the build to show that what was meant to be built has been completed.
Rental appraisal - This is done by a registered property manager and gives you and the bank an indication of the market rent that can be expected for the property. Most properties are sold with an available rental appraisal.