Here at Kris Pedersen Mortgages, we make the complex process of getting a mortgage a whole lot simpler. We do the leg work for you to get a mortgage approved, so that you can get onto the more important stuff like finding the right house for you, rather than stressing about finance. We’ll give you all of the info you need to know, explain what the banks look for in applications, and help you get the best possible deal for your mortgage.
We work with a wide range of lenders, not only banks – so even if your situation is a bit more difficult, we can help. We meet with you and discuss your plans, and what is possible for you when it comes to getting a loan. Once we’ve got you approved, we can discuss interest rates, how to structure your loan and align this structure with whatever your goals are.
Best of all, banks pay us a commission – so under most circumstances our advice to you is free*.
*T’s & C’s apply.
Banks generally are comfortable to lend to 80% of a standard residential property’s value under standard criteria – if you’re living in it. Banks will look at loans up to 95% however at the time of writing this they can only lend 1 loan above 80% LVR to every 10 under 80% LVR due to current Reserve Bank regulation. So essentially loans over 80% are rationed and therefore harder to get.
Banks normally like to see genuine savings as the deposit. But it is of course possible to get assistance from family or friends. This may be by gifting or the other party being a guarantor or by a family loan. Kiwisaver is also an option, along with First-Home Grants.
This question is something that is often asked by people looking for a mortgage, and it’s always something that we have the same answer to; it depends. The income you need to support a particular loan amount depends on a range of factors, such as your deposit amount, the nature of your income (salaried, self-employed, bonus, commission, etc.), how much other debt you have (if any), and the nature of that debt (Student Loan, Car Loans, Credit Cards, etc.), and your living costs. As a result, there are so many variables that are to be considered, and therefore it is hard to give a blanket answer to this question.
For more information around how banks assess affordability, check out our blog here.
If you’d like an assessment on your particular situation, get in touch.
Along with above criteria Banks will look at construction loans. There are three main types. These can be turnkey, fixed price contract or material and labour basis. We can discuss the differences with you, but in summary banks can usually lend a higher LVR on these loans (e.g. 80% for a rental property that is a new-build) as they are exempt from the LVR rules. Banks have relatively strict criteria on these loans.
In New Zealand there are a few different ways that mortgages can be structured:
Kris has provided us with outstanding service as our mortgage broker.
Previously to Kris, we had worked with two brokers who both had excuses as to why they could not find us the finance we required.
Kris spent time understanding our goals and financial position and gave us plenty of finance options to consider.
Kris works hard to understand what finance options will work for each particular property and how to improve your borrowing potential for future purchases.
Kris has the all important ‘can do’ attitude.
I have recommended Kris to several of my investor colleagues.
I met Kris by recommendation a few months ago.
Since then Kris has helped me and my friends to obtain finance for various properties.
I enjoy dealing with Kris very much because he thinks fasts and acts promptly. He is also very experienced and upfront; he often can provide valuable advice on the spot, which I value a lot.
I recommend Kris to my friends without hesitation.
From working with and knowing many mortgage brokers, I know that many understand finance but have a poor comprehension of property investment.
With growing my investment portfolio I needed someone who understood both.
Your knowledge, the advice you imparted and speed at which things were put together were invaluable for me in securing my latest investment purchase.
Until my next one.
After trying for 2 months to get short term bridging finance through 2 banks and another broker with no result, I approached Kris and had iit sorted within days.
Very efficient and great communication.
I just wanted to let you know that Ryan Smuts has been fantastic to deal with. He is very pleasant and easy to deal with and keeps us up to date all the way about where things are at.
He has managed to pull off a loan approval when the banks are holding on to their money for life and look for reasons to shoot down loan approvals.
We are very impressed with Ryan and he is a great asset to your team.
Buying my house on my own was a pretty stressful process, Ryan and Serena worked brilliantly with me, my lawyer and banks to secure my new
mortgage and home on the same day as settling on my previous home! Highly recommend this team.