Purchasing a property �
You must be able to show at least two years of steady income that meets requirements. This is where your tax situation can work against you if you failed in the past to declare all or most of your income. Your cash flow must reflect an ability to afford the loan, otherwise, you are at risk for being turned down. Generally, lenders will want your loan payments to not exceed 30-35% of your monthly income.
Securing the funds for a deposit is sometimes the hardest part of buying your first home. Deposit requirements vary from lender to lender and are based on a variety of criteria that can change over time. Although 20% of the asking price is widely considered the best amount to use for your deposit, there are lenders who will lend to those who put down as low as 10%.
First home buyers who have been in KiwiSaver for at least 3 years may be eligible to withdraw funds from their Kiwisaver (excluding the $1,000 kickstart). Buyers may also be eligible to access a Kiwisaver Homestart Grant, which is provided by Housing New Zealand.
Another option is the use of a guarantor who offers security for the borrowed portion over 80% of the purchase price. Guarantors should be close family and in a strong financial position, and they should seek independent legal advice before making any binding commitments.
A deposit can consist of gifts from parents, home start grants, funds from the sale of assets, Kiwisaver, and equity in your parents' home (should they agree).
Each lender considers differently how to treat cases such as significant inheritances or the selling of assets to cover deposits.
Each bank has its own lending criteria, and if you meet all their conditions, there's no reason why you shouldn't get a loan. We will assist you in shopping around for the best deal just like we did for thousands of our satisfied customers.
There are many different ways to buy property in New Zealand. At present, auctions are very common, because they usually command the best price for the vendor.
Are you going to sign on a Sale and Purchase agreement? Congratulations, you're just one step away from owning your dream property. However, as with any legal document, there are a few things you should consider before signing the agreement. Firstly, ensure that you are completely aware of your legal obligations, and then, make sure to include some conditions (about the property you're buying) in order to satisfy the bank as well as yourself.
So, once you've decided to make the purchase, do the following:
The Need for a Solicitor:
Buying a property involves many legal procedures, so you need the help of an expert Solicitor to examine the contracts and check if the property's title is in order. The Solicitor's help is further needed while arranging the valuations and reports, with transferring the property to your name (conveyancing) and registering your mortgage on the property title. He also helps you understand your rights and advises you on price negotiations and on the various ways you can own the property. (Such as a Trust or LTC Company) Also, he can create a Power of Attorney and Will, and the arrangements for your insurance and loan.
Most banks need you to have all these things sorted out, as a condition of the mortgage.
Finding a Solicitor:
You may ask your friends or family to recommend a Solicitor specializing in conveyancing or property deals. You can also find a suitable Solicitor by searching online or in Yellow Pages.
A pre-approval, also called conditional offer of finance, is a written approval from a lender stating that you are eligible to borrow a certain sum, subject to some conditions. Once you receive your pre-approval, go through it carefully to make sure that you understand all the conditions mentioned in it. Some common conditions you'll find in the pre-approval are:
In order to get a strong pre-approval letter, you must provide all the documents (with full transparency) along with your application. The ideal pre-approvals are the ones with a minimum number of conditions.
Deciding the Conditions:
When you're purchasing by offer and negotiation, you have the chance to define the conditions before the sale actually happens. But, be careful not to set too many conditions as this may cause the deal to fail. If all of the conditions are satisfied within the specified time, your offer becomes unconditional meaning that you're bound by the law to purchase the house. On the other hand, if the conditions aren't met, you have a right to negotiate or withdraw your offer. For example, if you mentioned a clean LIM report as a condition, and the LIM has some problems, you have full powers to cancel the offer.
If the property needs some repair work, you may set a condition telling the seller to finish the repairs by a certain date. Failure to meet this condition may not stop the sale but can delay the settlement until they are met.
In addition to the purchase price of your house, here are a few expenses that you should be prepared for.
$500 to $700
Pre-Purchase Building Inspection
$450 to $1,000
Share of rates already paid by the vendor
Varies - can be as
Low equity premium
This depends on the size of your Mortgage and maybe able to be added to your mortgage
Connecting gas, electricity, phone and Sky TV
$300 to $1,000
House moving costs
We have a complimentary Trailer for you
At Own It Mortgages, we will work hard to ensure that the lender will provide a cash contribution to help you with these expenses.
It entirely depends on what the seller does. If he accepts your offer, then the contract is dated and you have a binding agreement. In the case where he isn't satisfied, he may suggest a counter offer with altered price, conditions or timeframes. Then, you'll have three choices - agreeing with the sellers counter offer, making a new counter offer yourself, or just walking away.
Every bank will expect you to pay any outstanding defaults before even considering your application. Most banks check your credit history, so people with a bad record have a poor chance receiving an approval for mortgage finance. Here's what banks will be looking for during credit checks:
Buying your first home shouldn't be a financial burden, so know the full details of your repayments before you finalize the deal. Since owning a home has many other expenses such as home insurance, council rates, mortgage repayment insurance, body corporate fees and repair charges, it is important to carefully plan the size of each repayment.
Use our online calculator to get a fair idea about the weekly or monthly repayments you'll need to make.
So, you have owned your home for a while and thinking about purchasing another home? Perhaps a change of lifestyle? An upgrade to a larger home or the desire to live more minimalist - or maybe you are in a position to purchase that second home you've always dreamed of in that special vacation spot meant for you. No matter what your circumstances are, we are here to assist you Buy It!learn more
Refinancing simply means paying off your original mortgage and replacing it with a new one. If you are a homeowner, refinancing your mortgage can be a real money-saving strategy. Most banks offer a range of cash incentives to entice customers to refinance. In some cases, these incentives will cover costs of breaking the current mortgage and legal fees with possible surplus cash for you. So you may end up with a better interest rate and a little more cash. Talk to us and see if there are savings to be made.learn more
A key advantage of building your home is that you get to choose the features and final additions that suit your needs, style, and preference. Nevertheless, while the prospect of creating your dream home from scratch appears exciting, the challenge of finding the right financing solution cannot be overlooked. Are you a first time home builder confused about the building process and the various lending practices involved? Well, worry no more, as we are here to keep you informed and educated on all the latest trends on building a new home.learn more
This is the value you have in your home (land and house, excludes contents such as furniture) minus your mortgage and any lines of credit on the house. For example, if your home is worth $500K and you owe $200K, you will have $300K of equity. This equity can be used to
Our mortgage advisers are here to answer all your pressing questions. We can take a look at the home you have versus the one you'd like to buy and assist you in making that dream a reality. We take your entire financial situation into account and guide you towards the best option for you. So you can Buy It!
If you can afford to pay one extra payment a year (lump sum) or pay a little extra every month on the principle balance, this helps decrease the amount you owe on the mortgage. Again, it gets you on the road to better cash flow and financial freedom. For example, if you increase your payments by a small amount of $85 per week, not only do you repay your mortgage 10 years earlier but you will also save over $100k in interest payments.
� Here is an example:
What is the value of your home and what do you owe on it? Real Estate Agents offer free appraisals when listing your home, or if you prefer you could employ a Registered Valuer to value your home and will provide a comprehensive report with comparative sales. Check property values through your city and town, If you have a good deal of equity in your home, it's a good time to buy! You may use that equity to purchase another home or the vacation home of your dreams
Work out how much you can afford to borrow.
Gather information & paperwork to obtain a pre-approval
Start looking for a home and make an offer conditional to finance. Think about any other conditions you may like to put on your Sale and Purchase Agreement such as builders report, Registered Valuation and a move in date
Finalise finance, arrange inspections and valuations as required
make sure you are happy with the above inspections and reports, if so, then you are ready to unconditionally purchase this property
Talk to us about the best ways to pay off your mortgage and chat about how risk insurance may benefit you
Few things are more exciting than purchasing your first home. There's a pride and independence that one feels when there's a place to lay their head at night and it's all theirs. Say goodbye to all the rental money that disappears into the abyss and say hello towards payments that truly go toward your future investment-your home. There are a plethora of things you need to know before jumping into homeownership, and we at Own It Mortgages are here to assist you in any way we can. First, let's provide you with all the pertinent information you need to know about being a first time buyer.Learn More
So, you have owned your home for a while and thinking about purchasing another home? Perhaps a change of lifestyle? An upgrade to a larger home or the desire to live more minimalist - or maybe you are in a position to purchase that second home you've always dreamed of in that special vacation spot meant for you. No matter what your circumstances are, we are here to assist you Buy It!Learn More
A key advantage of building your home is that you get to choose the features and final additions that suit your needs, style, and preference. Nevertheless, while the prospect of creating your dream home from scratch appears exciting, the challenge of finding the right financing solution cannot be overlooked. Are you a first time home builder confused about the building process and the various lending practices involved? Well, worry no more, as we are here to keep you informed and educated on all the latest trends on building a new home.Learn More
Refinancing simply means paying off your original mortgage and replacing it with a new one. If you are a homeowner, refinancing your mortgage can be a real money-saving strategy. Most banks offer a range of cash incentives to entice customers to refinance. In some cases, these incentives will cover costs of breaking the current mortgage and legal fees with possible surplus cash for you. So you may end up with a better interest rate and a little more cash. Talk to us and see if there are savings to be made.Learn More
'Lorna empowered us, was easy to work with, dependable and solid. Lorna was the catalyst in achieving our dreams.
What Lorna does is go the extra mile. Lorna was always available even out of normal work hours and she always made us feel like we could ask her any question. Lorna was always well informed with free sound advice and gave clear information, informed options, and clear choices. Lorna created with us simple goals and plans to follow, never pressuring us and always making the options our choice, even if it took years :). When things got dark and when things got panicky, Lorna was like the dawn clearing the dark, just a phone call away to put us at ease. Lorna stepped in if needed be, addressing issues with other professional without having to be asked. She built a positive professional relationship with us to help us achieve what we wanted to. It feels as though she has always been a part of our family. I have recommended Lorna's services to many friends and family with excellent results. We wish Lorna, her family, and business team, a very prosperous future.
"Ehara taku toa, he taki tahi, he toa taki tini." Our achievement is not ours alone but was made possible by all our team.
Naku noa, na.
Michael and Marcella