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Looking for a Mortgage? Know your 5 First!

A large percentage of people still head straight to their own (or nearest) bank when deciding to apply for a home loan. If you have done this or are about to do this, you may be missing out on some significant benefits.

There are five very strong reasons as to why EVERY borrower should talk with Wayne and the team when trying to secure property finance:

1. CHOICE - after all it is a free market isn’t it?

The biggest advantage when using Wayne over a bank is choice. When you sit in front of Wayne you can choose between 10+ lenders and 50+ products versus visiting a bank representative who has access to only their bank’s products. This is especially important at a time like now, when the banks are saying ‘no’ more, and by having multiple choices you’re likely to get a ‘yes’.

2. EXPERIENCE - in areas that really matter.

Ask your bank representative how long they’ve been helping people with home loans, then compare this with Wayne’s 40 years within the lending sector. That’s experience through almost every financial situation including the harsh late ‘80s, the booms and bust of the ‘90s, the global financial crisis of 2007 / 2008 and the more recent Reserve Bank policy changes and upheavals. He has provided assistance in almost any situation you can think of from first homes and property portfolio investments to marriage breakups, bankruptcy and everything in between. With experience like that you can be assured he knows more than most when it comes to what is required to secure a mortgage. After all anyone can read an interest rate and use a calculator- it takes experience to know what numbers really matter and what questions to ask.

3. PERSONAL CARE - We act for you – and it’s more than just words

The value we provide is acting on your behalf – impartially. We have to, it’s part of our legislative and legal responsibility, but it’s also what we know to be right.

There is an equally strong argument for Wayne to act for you in situations where you may need to borrow more money in addition to and after your mortgage has been sorted. Situations where extra debt might be needed to purchase a replacement vehicle, boat or other large financial undertaking.

If clients have equity in their personal residence and are able to increase their borrowing to consolidate we will advise and assist them to borrow those funds at housing rates with the debt secured over their residence.

Banks often and invariably take a different approach guiding customers into borrowing those funds on a personal loan.

The difference is that under a personal loan facility the interest rate charged is at least 3 times the rate clients would pay if borrowing the funds at residential interest rates. Also by borrowing the funds secured against their home the client can dictate the term and/or amount they wish to repay the loan over or at. With a personal loan your term is restricted to a maximum 5 years.

This is another example of lenders focusing on their profit margin, not what’s in the customer’s best interest, and a practice contrary to the no.1 rule under the FMA code of practice regulations.

4. FOLLOW UP - so you don’t have to.

Following up the progress of your loan application is time consuming and frustrating. Wayne and his team of staff do that for you, keeping you informed and saving you time. Sounds simple enough but when you are trying to keep up with the pressure at work and focus on the family, the last thing you need is to be worrying about what paperwork is where and with whom. This comes into play particularly if you are considering a build process. Watch for an upcoming newsletter about the building and finance process.

5. PERSONAL MORTGAGE COACH – not just for the rich and famous!

Wayne effectively is “like the perfect personal coach”. You may have thought only people with extensive investments or property portfolios have access to this service. Guess what - you can too!

Wayne knows what needs to be done, can ensure it happens and because it’s Wayne’s own business, he is in for the long haul. Bank staff change often.

So even when you find a good personal banker they change jobs or roles before you know it. With Wayne as your personal financial coach you know when you call it’s him you are going to get.

As a coach he works with you throughout the lifetime of your mortgage facility encouraging you at every opportunity to lessen debt and pay off the mortgage as soon as possible saving thousands of dollars in interest. He can show you how and will work with you to achieve that.

Call the team who can help!



The #1 MISTAKE people keep making...

If the first thought you have when you think ‘mortgage’ is ‘interest rates’ – you might have made that one simple mistake many people make when considering a lender. Most people look for the lowest rate and think – “Great I can get a deal!”

The reality is you may very well end up paying more interest than the person who chooses a different rate and different FEATURES. Features that can work in your favour and that you need to be aware of can include:

FEE-FREE EXTRA REPAYMENTS - Paying just an extra dollar a day off your loan will result in significant savings in interest and see you mortgage-free far sooner. That makes increasing repayments (at no extra charge) a feature worth having.

PORTABILITY - This allows you to sometimes transfer your existing loan to the new property when you move house, meaning you could avoid having to pay break costs for your old loan or establishment fees for a new loan. However this may not be an option or may be a more costly alternative when all factors are considered.

REDRAW FACILITY - Provides access to any additional repayments you’ve made. Handy if you’re short of cash in an emergency, but it will put you behind in terms of interest savings.

MORTGAGE OFFSET OR REVOLVING CREDIT - An offset or revolving credit account lets you put any savings to work to reduce your loan interest charge. The balance of your savings is deducted from the loan when interest is calculated, so you pay less interest, with more of each repayment reducing the loan balance.

MORTGAGE HOLIDAY -  This feature offers a complete holiday from repayments or a period of reduced interest only repayments. This can be especially useful during career changes, ill health or breaks such as maternity leave. Ideal to include if you are just starting out and having a family.

So before you or someone you know makes this mistake – give them this newsletter or tell them to head to our website and get in touch with us so we can help them.



Need Mortgage Finance? - We can HELP!

We are going to tackle the bigger picture – how to place the value of your own finances over the wealth of banking institutions.

We EXPOSE one of the key mistakes the majority of people make when trying to get mortgage finance and we highlight why every person in the market for a mortgage or property finance of any kind should use Wayne – not that we are biased at all – but these points will make you think.

And finally we highlight some of the Trade Talk behind the scenes.

Enjoy the read and remember, just call us BEFORE you find the property you’ve been looking for and let us help you GET THE FUNDING FIRST.

Call Wayne and the team today on 07 856 2960!



Responsible Lending

There is a code of practise that we are required to adhere to as Mortgage Advisers and as an industry we are involved with the updating of this.

The recently introduced Responsible Lending Code aims to prevent consumers being locked into loans they can’t afford and may have little hope of repaying. They’re also designed to stamp out advertisements for “easy credit” that target low-income consumers and vulnerable borrowers unable to obtain finance from banks.

As a team here at SHARE it is something we have always done and will continue to do – take whatever amount of time is needed to ensure the best decision and lending option is reached for you!

To do this, we ask those searching questions that others perhaps overlook, or don’t have time for, in order to find out more about you, your aspirations and goals. This is not because we are nosey, but to ensure that as Advisers we are supporting you to get a loan you can afford, not just today but in the future.

We calculate repayments and financial factors BEFORE any application to a lender, ensuring you can make more informed decisions. Some clients we have spoken to have only found out from the bank how much their exact repayments were going to be after they had signed the paperwork!!

We pose the ‘What If’ questions as well – what if you were forced to one income through unforeseen circumstance. What plans could be made to ensure your property was protected. What if you decide to take a break and have a few months off – can we plan a strategy? It’s not about necessarily finding the lowest interest rate (although this is a consideration) it’s also about being responsible to you for today, tomorrow and down the track.


The house buying process – and how to protect your interests!

To get a better outcome when applying for a mortgage there are some inside tips you need to be aware of and that will ensure a smoother, perhaps less stressful approach to securing a mortgage.

HOT TIP : These are relevant if you are a first home buyer, about to re-finance or even purchasing a 2nd or subsequent property

  1. Get preapproval by contacting a mortgage adviser before beginning to look at property. This will ensure you are looking in the correct price bracket and do not waste your time from the outset. It can be stressful finding your dream home only to discover that the bank can’t - or won’t - provide the funds.

  2. Use a mortgage adviser – we have a wide range of lending options. If your own bank cannot help then we have a number of other banks and lending institutions we can approach on your behalf. NOTE: We will always submit your application to your existing bank unless you specifically advise you do not want to borrow from them.

  3. Going direct to your existing bank can back fire! Don’t worry, we can apply to them on your behalf (at no cost) and we will negotiate the best terms and conditions for you. Because we know what the market is offering daily we have a stronger negotiating opportunity.

  4. Remember Finance dates – these should be at least 10 working days from the date of acceptance of your offer by the vendor and they start from the day on which the contract is dated. The reason for the time period can be many and varied and include the need for a registered valuation, builders report, acknowledgement from the bank that the property is acceptable security for their lending and for other reasons.

    HOT TIP : If this is a struggle in your busy lifestyle – again use a mortgage adviser – this is where our knowledge and experience is available at no cost to you! If unsure call us.

  5. Save your cash until you have to use it. Deposits are only payable upon the contract being declared unconditional. When negotiating a purchase there is no legal requirement that a 10% deposit should be paid. You specify the amount of deposit you are either able to pay or want to pay. Accessing KIWISAVER REMINDER: Keep in mind that KiwiSaver™ funds are not available until the date of settlement and are paid direct to the clients Lawyers Trust account by the KiwiSaver™ provider. If all of the deposit is coming from KiwiSaver™ funds, clients may be able to obtain a temporary overdraft facility however that will be limited to $10,000 - $15,000, dependent on the lender, as the temporary overdraft is unsecured in these cases.

  6. Settlement dates: Where the withdrawal of KiwiSaver™ funds for a first home purchase is applicable you have to consider the following: If preapproval of available KiwiSaver™ funds for withdrawal has been obtained then the minimum time frame to receive the funds from the Kiwisaver provider is generally 2 to 3 weeks. If preapproval has not been obtained the funds may not be available for 4 to 5 weeks. Where a Housing NZ Grant is applicable the following needs to be considered – where applicants qualify for a Housing NZ Grant and preapproval of the Grant has already been obtained from Housing NZ the availability of those funds is generally 4 to 5 weeks. Where preapproval has not been obtained then at least 6 – 7 weeks needs to be allowed before settlement date to ensure those funds will be received by the lawyer in time for settlement. If not the Grant funds will not be provided. Settlement dates therefore need to be discussed with us prior to signing a contract to ensure your Kiwisaver provider and/or Housing NZ (where applicable) have sufficient time to advance the funds to meet the scheduled settlement date timeframe.

    If you are a little concerned or have a question – this is where your mortgage adviser comes into play again - we work alongside you guiding you through the process – so please contact us.


  7. You will more than likely be caught up in the exciting prospect of owning this home and therefore may well overlook a crucial aspect of the Agreement, so get your Lawyer to sight a copy of the Agreement before you sign it. You can email that to your Lawyer, or ask your realty agent to do so. The agreement needs to include clauses to protect the purchaser’s interest. For example – if a valuation is required it should be subject to the valuation being not less than the purchase price – the need to include a clause for a builders report (where applicable) – check finance dates and settlement dates. Your Lawyer will make sense of the legal jargon for you and clarify any issues. Remember a realty agent is generally acting in the vendors interest and will draw conditions up pertinent to the vendor only. You simply need someone on your side of the agreement.

  8. Where buying in a Trust or Company name – make sure this is all organised beforehand – lenders need to know and require a copy of the Trust Deeds (for Trusts) or Certificate of Incorporation (for companies) along with personal details of the Trustees, Shareholders and Directors.

  9. And don’t overlook the fact we will require a copy of the Sale & Purchase Agreement, so ensure either you or the realty agent email us a signed and dated copy. Often this gets forgotten or overlooked.

Next Edition – Going Unconditional After the Due Diligence. Looking behind the ‘Recent Makeover’ to ensure there are no hidden surprises – what you can and should do when buying a property.

Call the team who can help!



Banks on a roll!

They are at it again! Yes, the banks are hungry for customers, with many being aggressive in contacting home owners trying to tempt them into refixing by offering discounted rates – the catch seems to be that these ‘special’ rates are only available for 24 – 48 hours.

Be wary of anyone being pushy and offering a time limited offer – you are the customer providing them with years of repayments – so STOP, take a deep breath and tell them you will call back later, or better still that you work through Wayne – then call us for the following very good reasons;

a) We will negotiate the best discounted rates available with your lender and know what is available from other lenders as a comparison. If the rate is not good enough we will go back and renegotiate on your behalf.

b) Always remember banking personnel work for their employer (the Bank) whereas we are working in your best interest and will advise you accordingly.

HOT TIP : You have to ask yourself – how likely am I to see this same person in 2, 3 or even 5 years time and are they really employed to look after my best interests?



Have you ever been encouraged by a bank to fix your interest rate for longer terms (3, 4 or 5 years) when interest rates are clearly moving down?

Had we been advising you, we would have suggested fixing for a shorter term – anything from 6 – 24 months instead. Once you are locked in for longer terms break costs become very expensive if you want to terminate your fixed rate contract.

When this is the largest investment you will likely make, and these calls come in, it can be tempting to just accept the interest rate offered. We know what it’s like- we all lead busy lives and can be distracted and just say yes without realising the consequences.

IMPORTANT TIP : Consider this - do they get you to confirm your requirements by email? If not, where is the documentary evidence of your request?

Again, be wary. Tell them you will call back at a more suitable time – and then call us so we can see if the hooks outweigh the catch! 07 856 2960



The Age Old Decision... to Fix? or to Float?

As a business, this is something we are asked by most people we talk to. Generally, as consumers, we look for certainty in our purchases – will the car we buy today last into the future? Will the phone I buy today last until next year; before a new model comes out? Will the mortgage I fix work for me in 2 years’ time?

There is significant disparity between floating and fixed rates in the current falling interest rate market. We are currently recommending shorter term fixed rates between 6 -24 months. We believe interest rates will fall further over the remainder of this year and into 2016.

For anyone re-fixing onto a lower rate, this is an ideal time to re-consider your repayment amount.

A minor increase can substantially reduce the mortgage term and effectively save a considerable amount in interest.

For example, an increase of $30 per week in loan repayments on a $350,000 mortgage over a 30 year term @ 5.00 % pa interest rate will reduce the loan term by 4 years! More significantly, this will save $50,000 in interest costs.

If you would like to know how to implement these changes so that you can take advantage and save, please give us a call.

 


Stay Out of the Mortgage Jail

With interest rates continuing to fall, many banks are offering seemingly great deals on long term fixed rate options
for people wanting finance for:

• Refixing and refinancing
• Property purchases
• Alterations and home renovations

On the surface taking advantage of a low rate long term seems sensible – but our take on this is that with uncertainty still playing out in the marketplace and possible further rate reductions, taking on a long term option may not be the best decision.

The mortgage lending market is dynamic. Locking in a 5 or 10 year option doesn’t make sense. Your life is as dynamic as the market. Once you have signed that 5 or 10 year seemingly low rate long term fixed rate contract, extracting yourself from this is a costly exercise with early repayment fees charged.

Recent feedback from people we have been seeing is that there is considerable focus from banks on this option with little regard to people’s best interests and circumstances. Be aware Banks can only provide one product – theirs.

As a broker we have access to the majority of reputable lenders throughout NZ. This means we can consider MORE options giving you MORE choice. There is no fee for our service and we save you time trying to search out the best deal yourself – we talk daily with lenders and know just what is available in the marketplace any given day and know what we can negotiate and secure on your behalf.

So if it’s time to..

• Refinance
• Refix
• Buy another property
• Get the renovations done

Call us to evaluate your situation and ensure that you:

a) Aren’t locked into an unfavourable situation in the near future
b) Have the best possible rate
c) The flexibility that suits your needs
d) A mortgage that works for you and helps you get ahead.

Finally contact us when you want to refix your interest rate – it costs you nothing except a phone call. We will negotiate the best rates 

for you and most importantly advise you on what we see happening in the financial markets and therefore what may be your most suitable option at the time.


How do you know you have the best rate and most appropriate fixed rate term if you go directly to your lender?

You don’t!

Call anytime – I’m here to help!

Wayne

Bribery Not required

I was with friends the other night for dinner when the discussion came up around customer service, or lack thereof in some cases. We noted that although the food was really good, the service just wasn’t up to the normal high standard.

‘Disinterested’ at best, rude at worst would be my description.

Almost everyone at the table was able to highlight at least one negative customer service experience that week alone. Of course it has to be said everyone has ‘off’ days and we can all be forgiven for those.

In fact you will nearly always get a second chance if the reverse occurs - the food was not of the normal high standard however the service was very good.

The discussion turned to what is good customer service: 

• Knowing who to call when you have a problem, or just a query, and getting that person on the phone.

• Having someone know your name.

• A smile when you are doing business.

• Having the person do the job correctly – first time.

• Not having to do something that you thought you were paying the service provider to do.

• Not having to rely on points, bonuses or special gifts, to keep my business – the service should be good enough for me to NOT want to go elsewhere. – i.e. Bribery should not be required for good service!

Naturally the lending/banking industry comes to mind in my line of work, and the most common complaint we hear in our office is – “my old bank manager left, and now I have no idea who to contact”.

Without being too immodest, I have built this business on nothing flash – just good old fashioned customer service and common sense.

• The phone rings we answer it.

• You leave a message, we return it,

• You need help, we provide it.

• You don’t know what bank to go to for the best deal – we provide you with options so you can choose what suits you.
So if you are tired of the bank hounding you trying to sell you another product, tie you into a longer period for your lending or just have no idea who to call to discuss what you should do – CALL US and get the customer experience you’ve been looking for and should deservedly expect!


1st home buyers with only 10% deposit

Buying your first home could be closer than you have been led to believe. There are banks that are crying out for your business as a first home buyer even if you only have a 10% deposit saved. CALL US if you or someone you know is in the market for their first home and have been worried about not having a 20% deposit. We may be able to assist.

There is still a myth that you MUST have a 20% deposit to purchase a house in NZ. The FACT is you can purchase a house with a 10% deposit from a wide range of lenders.

In 2012 NZ Registered Banks were forced by the Reserve Bank to REDUCE their lending to people with lower deposits. The key here is REDUCE, not completely stop lending to people with only 10% deposit raised.

And it’s right now that we are organizing LOW Deposit lending for people all across the Waikato and beyond, ensuring that people can actually realize their dream of home ownership. These mortgages are competitive and favourable for our clients with flexibility and added value from the lenders.

Home ownership is still affordable in NZ – and we would be suggesting that the time to get in is now! 


Stay Calm and in control

When it comes to borrowing money many people feel like they have little control over their circumstances and that the banks hold all the cards. The reality is that you do have control – provided you stay calm and consider the following

– Control What You Can.

1. Your Debt - You can determine how much you want to borrow. Yes,the banks will have limits and criteria, however you know what limit is comfortable for you.

2. The Cost of Your Debt- By considering the various options you can reduce the COST of your debt (the amount of interest you pay long term). Examples of this are:

• Fixing the term to lock in a low interest rate
• Saving a little more and increasing the amount of your
deposit
• Increasing your regular weekly, fortnightly or monthly
instalments. This can be done on either fixed or
floating interest rate loans.
• Revolving credit – this does require discipline but can
be a useful tool in reducing the cost of your debt
• Repaying lump sums at regular intervals
All this can be achieved by sending us an email with your
instruction and quoting your loan account number


3. Who you borrow from – yes it’s a free economy! You can change your lender at any time as this is a factor
you do have control of. Each lender offers different benefits/advantages – so as your lifestyle changes, your
lender may need to change too!

4. Control the conditions of your mortgage Although Banks have terms and conditions, by shopping around, you can choose a bank with conditions that benefit you and don’t cost you more. An example of this is that some banks insist that you obtain a Registered Valuation irrespective of whether you are borrowing less than 80% and where a purchase price exceeds $500,000 or in the event the purchase is by private treaty. Other banks do not require this and are more flexible. So choose the lender according to your wants and take back the control. 

Furthermore, they are now endeavouring to dictate who does the Valuation for you – another example of taking
away your choice. As a broker we are able to evaluate your wants and needs and find a bank that best suits you as opposed to a bank selling you what they offer. 

Call anytime – I’m here to help!


Waynes Words of Wisdom

Anything Wayne Can Do We Can Do Better…

or so they say! Some banks are making a concerted effort to contact anyone on their lending register whose mortgages are coming off fixed rates. Because banks remunerate staff according to targets there is pressure on staff to sell, sell sell!

One bank representative even assured a client that any refix offer Wayne could provide, he could do better. The reality is they can’t. They have one product – their bank; they don’t have the ability to shop around - we do.

We match your needs with bank offers and then negotiate. We don’t negotiate with a bank to set a deal and then find out what your needs are. Again it is your choice, however for unbiased advice and support – talk to us.

Remember we are your ongoing Mortgage Manager and Financial Adviser and as such will always have your best interests in mind – not the banks.


Apply for a Welcome Home Loan

Administered by Housing New Zealand, this scheme currently allows individuals to borrow up to a specific value with little or no deposit. Not all Banks are involved with this scheme so we do recommend you talk to us first. 

Recent changes that come into effect on 1 October 2013 for this scheme are mainly centered around the amount able to be borrowed and the change in deposit requirements. 

The basic criteria are:

  • You must be New Zealand Citizens or Permanent New Zealand Residents (holding a 'Permanent Resident Visa').
  • The Welcome Home Loan is for owner-occupied properties only. It is not for rental properties.
  • Borrowers must not own any other property.
  • Borrowers may need to pay fees such as an application fee and a Lenders Mortgage Insurance premium fee. But in most cases these can be built into the home loan. Talk to your participating lender to see what fees apply.

House price caps as of 1 October 2013 are:

·        Auckland's house pricecap - $485,000

·        Wellington City andQueenstown Lakes' house price cap - $425,000

·        Christchurch City andSelwyn District's house price cap - $400,000

·        House price cap forThames/Coromandel, Waimakariri, Hamilton City, Western Bay of Plenty, Hutt City(Lower Hutt), Upper Hutt, Kapiti Coast, Tasman/Nelson, Tauranga City andPorirua City will be $350,000

·        For the rest of NewZealand the house price cap will be $300,000.

Applicants willneed to have a deposit that is 10 percent or more of the purchase price. Previously this had been set at 0% forborrowers under $200,000. However the belief that an effort should be requiredin some form of savings has seen the requirement of a deposit.  However this can be gifted.

And finally there are Income caps

These are now $80,000for 1 buyer and $120,000 for two or more buyers.

Designed to provide an avenue for home ownership for low income earners this may be an opportunity for you to consider – but do please talk to us as not all mainstream lenders are involved with this scheme.


AGE IS NOT A FACTOR

After talking with a number of people we have discovered that there is some hesitancy in relation to accessing schemes such as KiwiSaver™ and the Welcome Home Loan ™ packages for home lending.

Many people think that these schemes are just for the young – THEY AREN’T – in fact as our headline states –AGE IS NOT A FACTOR!

So here are the facts:

KiwiSaver™

ANYONE can access their KiwiSaver™ to use the majority of funds as a deposit for their first home.  Subject to the conditions below:

KiwiSaverfirst-home savings withdrawal can be used to: -

  • Buy a home.
  • Buy land to build a home on (it cannot be used to assist with building costs if you already own land).
  • Purchase a property for personal occupation only – NOT for rental.

 After a minimum of three years membership ina KiwiSaver™ scheme, you may be able to withdraw:

  • your personal contributions
  • your employer contributions
  • all returns on those contributions (interest etc)
What you can’t take out is the Government annual subsidy (approx$520p/a) or the initial $1000 kick start.

Wayne’s Words of Wisdom

Firstly, if you already have a mortgage or a decent amount of equity in your home there is nothing to worry about. If you are about to buy, sell or even look to top up your mortgage then you need to be aware of the changes.

In order to slow the rate of housing-related credit, the Reserve Bank has stepped in by restricting banks abilities to lend at high loan-to-value ratio levels.  Banks will now be required to restrict low deposit lending considerably,  being limited to a maximum 10% of their new lending by dollar amount on low deposit loans– that is any lending over 80% of the property values.  Lending at these levels  will still happen, but banks will be more circumspect as to who they give low deposit loans to.

Basically for the majority of New Zealand borrowers, you will require at least 20% of the required cost as a deposit.

So what do I think – well to befrank I think it’s a broad brush approach that is only going to ‘hurt’ andaffect the middle New Zealand borrower and first home buyers.  Currently first home buyers and low incomeearners can access KiwiSaver ™ and the Welcome Home Loan™ schemes (featured onour fact page overleaf).

No one can argue that areas suchas Auckland, and potentially Christchurch, are seeing inflated house prices - andthis needs to be addressed. However creating a situation whereby the entirecountry pays for the problems in specific areas is simply not the answer, northe solution, in my view.

In my opinion, a better and morepalatable option would be to allow a 5% minimum deposit for any property purchaseunder $500,000 and for any property purchased over $500,000  a 20% deposit would be required.   This is simple and addresses the issue athand.  What’s more it is easy toadminister as opposed to the cumbersome administrative nightmare of policingthe adopted policy. 

It appears the Reserve Bank did not favour such an idea as it targeted specific geographical areas! That’s like saying – there is a wart on the end of your nose so we will cut off your head because we don’t want the nose to feel like it’s being picked on!

However frustrating it may be,these are the new regulations and we have to live with them. But rest assuredwe are working even harder for our clients.   Now more than ever it makes sense to use ourservices as your mortgage adviser – remember we have access to most lenders inthe market.

And like anything in life –there’s always a solution.  With other lenders besides mainstream banks NOT being regulated in this fashion, there are still opportunities to purchase a home with a low deposit.

Sometimes it’s not a case of who you know, but what you know  - so give us a call to discuss how these changes could impact your next borrowing decision.

 


Sweeping with Broad Brushes


With recent announcements from the Reserve Bank, and the questions that are being asked of us, we felt it was necessary to bring you up to date with the changes in the banking sector –especially around the amount of deposit now required of you in order to buy a property.

So what does it mean? For some, it means being turned down by the bank, compared with  a few weeks ago when they would have welcomed your business!!!  It may also mean that right now there are longer waiting times for bank loans to be accepted, and missing your dream property could very well be a reality!

However, we are nothing if not optimists, and believe that there is always a solution. And that’s our strength– we often have the answer and just need to be asked the question. So if home ownership is a discussion you or anyone you know is having, then call us today so we can start helping! 


3 Tips to Choose the Right Interest Rate

Now there is always discussion around Interest Rates – in fact it seems to be, for many, the single most important criteria that is considered when choosing a lender.

Generally one of the first questions I am asked when I meet with someone to discuss lending is – “Where do you see interest rates going?”

That is not always easy to predict, however I do believe that Interest rates will remain lower for longer. Of course things change, and I could be wrong, although I’d like to think that some of the volatility has been removed from the marketplace. But when it comes to securing finance for a property there are 3 tips that will hold you in good stead:

  1. IGNORE THE INTEREST RATE that the banks promote. This may sound illogical as typically this is the very first item to consider- HOWEVER - what a bank offers direct to you and what we as Advisers can often secure may in fact save you THOUSANDS of dollars. TIP #1 – If you want to save money and get an interest rate that is more than just ‘competitive’, TALK TO US FIRST.
  2. IGNORE the temptation . Whilst rewards and gifts may seem very tempting and just what you want, the reality may mean an interest rate that actually ADDS to the amount you will pay in the long term. So while an IPAD may be just what Santa forgot, we suggest that you IGNORE the temptation and just buy one with the money you can be saving from a lower interest rate. TIP #2 – If paying off the mortgage faster is important to you, TALK TO US FIRST.
  3. TAKE CONTROL. As a consumer you have a great deal of power. More often than not, most of us simply don’t realise it at the time. By engaging us to act as your ‘Pseudo Bank Manager’, you will find yourself with a great deal more control as we act on your behalf. It is our job to negotiate, advocate and manage the lending process, removing you from some of those possibly challenging discussions. Tip #3 – If you are keen to avoid unnecessary stress,TALK TO US FIRST.

A recent example of just how our service is of real value has highlighted when a client on re-fixing their home loan went directly to the bank. They got the off-the-shelf interest rate. It wasn’t until I caught up with them that they mentioned it. There were some changes in the couple’s personal situation which meant the lender requested a great deal of additional information. Even as a client of the lender for over 10 years, there was no special offer or reward for their business. Loyalty means something – well it does in my book - and I believe that loyalty should always be acknowledged. If not… well as the consumer you have control!

Finally the biggest TIP I can offer as someone that has been in the industry for more than most, is to pick up the phone, organize a coffee with me and let’s see what we can secure for you. 

Refixing / New Home / Interest Rate Changes / Additional Lending / Investment Property Funding 

Call anytime – I’m here to help!

Ready to Build and Need $$$

The ideal time to work out your finances is when you first start thinking of building. Knowing how much money you can access will provide you with certainty. The various lenders in the NZ market offer a range of lending options. 

These are tightening, so perhaps now is when you should be talking to us if you have a build in mind. We may be able to help you with:

  • Borrowing up to 95% of the house and land value
  • Not having to make any loan payments until you move in
  • Borrowing extra funds for furnishings and finishing touches
  • Paying interest only on the amount of money you have drawn down to pay the build

So once again, do talk to us as we have the contacts, and can in most cases negotiate a lending package that is better than you can get as a walk in customer!


Wayne Words of Wisdom

A previous newsletter stimulated some interesting conversations around the accessibility of KiwiSaver to purchase a first home. Our article highlighted some of the criteria and rules surrounding the use of KiwiSaver Funds. Two points need to be expanded on and clarified:

To obtain the subsidy people have to apply to Housing New Zealand at LEAST SIX WEEKS BEFORE settlement date. Failure to do this may result in you not receiving the subsidy amount as a consequence. Please also be aware the portion of funds that have been contributed by you and your employer ARE AVAILABLE to use as your deposit. The Government contribution funds are not available to use. 

Whilst you are able to use your employee/employer contributions to form either all or part of your deposit funds when purchasing a first home, it is important to note that these funds can only be made available on the date of settlement. They are paid by your KiwiSaver provider direct to your lawyer and can only be used as part of your funds to purchase a property. 

There has been a tightening of lending criteria for 90-95% loans. With fewer lenders in this category, do talk with us BEFORE you make a move to avoid the stress and disappointment of having a loan turned down. In line with Government budgets, Welcome Home Loans criteria has also become more restrictive. Once again this is an area that we are experienced in, so book a time with me and we can discuss your options.


The real value of money

 

The saying – You don’t know what you’ve got ‘til it’s gone, can often apply to more than just a love relationship!
It can and does apply to two other crucial items in your life- your money and your health. Lose one of these and things can get a bit tough. But there are fairly simple methods to fix these.

The first is know what you value and its worth and then insure it.

Just as a violinist insures their hands, you should insure the manner in which you earn an income.

Just as your children are precious to you, you should ensure that there is enough money in the bank to support them should something happen to you.

Just as being able to get specialised medical support when you need it has an almost priceless value when you are faced with a tough situation

And you can get insurance from anywhere.

What you can’t get though is what we offer and this provides a value to money that others just don’t provide.

We manage the paperwork process – not just at sign up time, but more importantly at that other crucial moment – CLAIM TIME

We process your claim. When others might tell you to ring an 0800 number we make the time to do this ourselves- that's our job!

We check the paperwork is completed correctly minimising that dreaded paperwork backwards and forwards process

We also submit the claim to the insurer, removing the stress from you about getting mail in the post.

Then and most crucially we follow up to make sure it is being actioned, that it is being sorted on your behalf, this includes going right through until payments have been made to the appropriate parties, including you if that is the claim.

So if you want to be able to rely on the person that helped you find the most appropriate insurance policy for you, and want that person to be the same person or team that supports the claim process with you, then talk to us!

This is where we provide the real value of money


Get in touch

 

Our advice comes supported by many years in the mortgage and insurance industries. So contact us today!

0800 800 333  wayne.oliver@sharenz.com
 sarah-jane.reay@sharenz.com

07 856 2960  
07 856 2962    

This website is for general information purposes only. We encourage you to
call us or email us in confidence with specific questions.
 

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