As mortgage advisers we often see clients in situations where they have gotten themselves into debt and aren’t always managing things in the most effective ways, and this includes first-home buyers and also property investors.

 

The most common mortgage mistakes we see are as follows:
 

The new government, their proposed changes to policies, and their effect on landlords/investors, what does it all mean?

The election has blown over, our political environment has been set for at least the next 3 years, and the term under Labour seems like it will be influential for property owners/investors with the fact it was such a hot topic in the campaign.

To re-cap on our previous newsletter, I am primarily focusing on the property/rental market, the economy and how this will impact us as investors.

From this perspective, the Labour party plans on the following changes, which I’ve grouped together based on.....
 

How do I get started in property investment?
 

• Learn the basic principles you need to know about property investment
• Understand how to turn your first investment property into a portfolio

Property ownership is and always will be a kiwi dream, if not, THE kiwi dream. In the current market, especially among major town centers – with Auckland in particular – affordability is more and more problematic, with property investment seeming even further out of reach – but in reality, is it?
 

Congratulations, you’re approved! What’s next?

The conditions of the loan offer are usually detailed in the offer letter itself, and can sometimes seem quite confusing, meanwhile you’re just concerned about how to access your money.....


 

Collateral is basically the backing outside of a borrowers personal guarantee which can help a borrower secure loans. It gives the financier the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes......


 

The Third C, which many Kiwis are facing at the moment as the major hurdle for getting into the property market, particularly into their first home, is Capital.

Lenders will carefully consider the amount of capital a borrower puts toward a potential purchase, whether it be owner occupied, or investment. This can vary dependent on the .....

The next ‘C’ is Capacity. This is a test that the lenders conduct to satisfy themselves that the borrower can repay the loan that is being applied for based on the client’s particular circumstances. It is sometimes referred to as Serviceability too.

A bank will view the numbers quite differently to your own calculations, which is why you may sometimes experience a.....


 

Credit is governed by what is known as the 5C’s, I will be doing a five-part blog on each of these over the coming weeks which should assist readers in understanding what it is banks look for when assessing finance applications.

As the credit market tightens banks will look more closely at finance applications, and we might find that more and more frequently, what was previously approved, will not be in the times ahead.....

 

Buying a home is a dream of many Kiwis. It always has been, and always will be – even if it is perceived that it is now more difficult than ever.

With the fact that this is a large step for anyone, there is no such thing as being too careful, where do I start......

 

Kris Pedersen talks about whether now is a good time to fix your mortgage and if your loan is already fixed, should you be thinking of breaking the fixed term and refixing at a lower interest rate.....




 

Kris Pedersen gives an overview of the RBNZ's recent submission to the Government to have a new debt to income lending rule applied and he explains how this may effect borrowers in the future....

 

The battle does not get easier for first home buyers needing 20% deposit.  This is particularly pertinent to those in the Auckland market.
 
If you have a deposit under 20% then obtaining finance is harder due to Reserve Bank restrictions in place. Additionally, the cost of finance is higher, interest only and/or revolving credit facilities are not available and there is often a hefty.....
 

From 1 April 2015 The KiwiSaver HomeStart grant will replace the KiwiSaver First Home deposit subsidy. The KiwiSaver HomeStart grant provides eligible first home buyers with a grant of up to $5,000 for individuals and up to $10,000 for couples to put towards a deposit for an existing home. So this is the same as the old scheme......