This month, the news from the housing market is actually quite cheerful – at least if you are a buyer. Mortgage rates have dropped again, prices are lower, and there are plenty of properties to choose from.
Don’t panic if you are considering selling though, it’s not all bad news.
Let’s look at the latest news and see what bright spots there are for buyers this month.
It might feel like all you hear is bad news when it comes to property and finances lately.
It’s still not a pretty picture in the housing market, but it’s not all doom and gloom either.
This month we are bringing you some bright spots.
Mortgage rates have dropped slightly, yes, you did hear that right!
Mortgage advisers are unique in that they do an enormous an amount of work upfront prior to being paid for their services. This can be 1-2 months for standard residential purchases or 1-2 years for construction loans.
Any work we do for you will in general not cost you a fee (unless an upfront fee is negotiated for non-bank lenders).
The approach to obtaining a mortgage for self-employed, is much the same as for any potential borrower, however there is more onus on the length of time in self-employment and the verification of the income and any ongoing debts the business may have.
We would all like to be able to get instant finance approvals, but the reality is that each client and property that client wants to purchase has unique characteristics.
Everyone’s situation is unique. We need to get to know you and your requirements prior to making specific recommendations. Each lender markets their suite of home loans differently, so it appears to consumers that there are many types of home loans to choose from. This makes if difficult when selecting the most appropriate home loan for your requirements.
Following are some tips on how to get finance for first home buyers, with perhaps less than 20% deposit who want to make sure they are in the best possible position to apply for mortgage finance.
It’s no secret that the Credit Contracts and Consumer Finance Act (CCFA) was not loved by many. It has been widely criticised for bringing in too much paperwork and causing issues for capable borrowers. Less than two months after the rules came in, a review was ordered and after submissions changes have now been announced.
For real estate agents, I can ensure clients are pre-approved or at least qualified for the property they are interested in purchasing. This service does not cost anything and will ensure you are working with clients that can complete.
For Lawyers, you may have clients that are interested in purchasing but have not yet attended to their finances. Talking with a broker is like talking with 20 banks and a vast number of lending products. We can either help your clients now or point them in the right direction so that we can help them in the future.
With the Reserve Bank raising the OCR to 1.5% in April, it is no surprise that interest rates are on the rise again.
Oh, and the eagerly awaited changes to the CCCFA are expected to be announced soon (watch this space).
But, what else has changed since our last update?
What’s happening with property prices, mortgages and the cost of living?
Home loan deposit explanations.
The 1st is the Upfront or Holding Deposit used when purchasing a property.
The 2nd is the Equity Deposit which is the amount of deposit (equity) a lender will require depending on current lending criteria, the type of property being purchased and the end-use of that property.
In a rising interest rate market, refixing your mortgage can be time-sensitive. Banks no longer offer advice when you are refixing with online banking or phone apps. As a mortgage broker, I will continue to offer a mortgage review & refix service. In fact, I am paid to do this – some lenders pay me a small fee (or trail income) to provide this service. I often know your mortgage plans so can help you keep on track.
A Mortgage Broker will help and prepare new & existing homeowners to obtain competitive mortgage solutions for their unique situations.
Detailed advice and coaching on the recommended steps toward homeownership are provided to ensure a full understanding of the process.
1. Why do we need a Mortgage Appointment? 2. What is a Home Loan Pre-approval? 3. What is a Conditional Approval? 4. Why do I need a Solicitor? 5. What is an Unconditional Approval? 6. What is a Home Loan Structure Meeting? 7. Why do I Need to Meet with the Bank? 8. What is Document Signing? 9. Why do I need Property Insurance? 10. Why do I need Personal Risk Insurance? 11. When is Settlement Day?
First home buyers often ask if it’s worthwhile using a mortgage adviser and whether obtaining pre-approved finance is a good idea.
They want to know the benefits of going through the process.
Here are my top Nine reasons why first home buyers should use a mortgage adviser and obtain pre-approval for a home loan
Sitting in front of a broker is like sitting in front of 20+ lenders with hundreds of loan products, rather than having the options from just one bank.
The words ‘Mortgage’ and ‘Home loan’ are often misunderstood, and both are often used to describe money lent to a new homeowner by a bank to purchase a property.
There is confusion regarding the terminology and what the terms mean in theory and in practice. The mortgage & the home loan are separate legal obligations.
Autumn brings cooler mornings and evenings, but is it also bringing a cooler property market with it?
We’ve definitely seen a shift in the way the market is behaving.
But, what does that mean for you?
And, what impact has the change in lending regulations had on New Zealanders?
Let’s explore the answers to those questions now.
A Land Information Memorandum (LIM) is a report that provides a summary of all the information that the local authority has on file.
A Pre-purchase Building Inspection report is a detailed property survey and includes a visual inspection of the components of a building, i.e. the interior, exterior, outdoor, roof and site areas.
A lawyer or conveyancer will protect your interests, in other words, they will act independently as their purpose is to work for you.
Get to Know you Meeting, Set up for Mortgage Application Success, Summary and Action Steps, First Time Home Buyers Checklist, Options for Deposits, Home Ownership Budget, Home Buyers Financial Assessment,
Is The Property Market Finally Trending Down? The property market might finally be starting to climb down from its peak. However, many things are still impacted by Covid and its associated response. And let’s not forget that inflation and lending criteria are all playing a part in the current situation.
With the media going crazy with reports of declining mortgage approvals, is it harder to get a mortgage right now? We answer this question and more here.
Just about every first home buyer will ask the question ‘can I use kiwi saver’. The following blog will outline important information to answer this question. Eligibility for Kiwi Saver
Why use a mortgage broker? – A Mortgage Broker will help and prepare new & existing homeowners to obtain competitive mortgage solutions for their unique situations. We do this by
When you purchase a new home and take on a mortgage the bank will lend money to you for a fee called interest. The interest costs are calculated annually with
Initially, we all want to know what are the best mortgage interest rates on offer from the lenders.However, going with the lender that has the best mortgage interest rate may
The question, what does your income need to be to get a mortgage has no straight forward answer. There are many factors that come into play.The income you will need
There are a number of costs to be aware of and plan for so that you know how much it costs to get a mortgage.Using a mortgage broker generally means
Property Market 2022: Our Predictions. The major changes to the Credits Contracts and Consumer Finance Act are heavily impacting the lending scene, so is it harder to get a loan now? And what will 2022 have in store for us when it comes to all things finance?
Finally, could the winds in the property market be changing and shifting to a buyer’s market?
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