Advice, First Home, Kiwisaver, Mortgage, News

Why use a Mortgage Adviser/Broker

Buying a home is a tricky business. There are so many considerations to take into account. Sometimes you might feel as if you’re about to take a giant step into the abyss. You hope for the best outcome and pray that nothing bites you in the bum!

There are many parties that contribute to a successful property buying experience. Real estate agents, valuers, building inspectors, councils, solicitors, lenders; the list seems to go on forever and it can end up costing you a pretty penny. Then there’s the process. How does it all work? Who does what? What are the timelines? Managing this process and pulling it all together is time-consuming and often confusing; especially for first home buyers.

The housing market is a competitive environment. Often buyers feel pressured to make hurried decisions in order to achieve a purchase. It’s a whole lot of money you’re parting with and you have every right to ensure you are making an informed and correct decision.

Finance is a biggie. Most buyers will require mortgage funding to secure their home. The world of mortgages is complex, with rules and regulations aplenty. Loan to value restrictions, strict credit criteria, interest rates, etc. make the mortgage journey a hazardous one.

Enter the Mortgage Adviser! A good adviser will work with you from the outset of your house hunting journey. They will advise you on the best course of action, given your circumstances. They know the rules inside out, and can figure out how to make the finance work best for you. A good mortgage adviser will be a sounding board for your house ideas – they have reviewed countless buying opportunities and know what to look for and what to avoid. They will provide advice on pricing and buying strategy. They will recommend other professionals to assist you in making a sound property decision. Most importantly, a good mortgage adviser will act as the glue, that holds the whole process together. They’re basically the project manager, ensuring the whole thing works seamlessly so you have the keys to the door come settlement day.

A good mortgage adviser provides a valuable service. What’s really amazing is that this service comes FREE! (for most). That’s hard to beat.

What else can a mortgage adviser do for you?

One of the questions you might have if considering a mortgage adviser for the first time is, why use a mortgage adviser versus going to the bank direct? Or, what is the difference between a mortgage adviser and a mobile mortgage manager? It’s hard to sum-up what we do in a couple of sentences, so here is my list of reasons to use a mortgage adviser and me – Trish in particular.

Better Pricing. I process mortgages every day, so I am in a unique position to know exactly what offers are in the market. A mobile mortgage manager works for one bank, enough said.
Better Advice. As a Financial Adviser, I am qualified and allowed to give advice on things like loan structure, budgeting, and my view on future interest rates. Bank employees are not trained to give this advice and technically aren’t allowed to. If you’re dealing with someone in a branch they cannot provide advice at all.
Free Service. I generally don’t charge for my services unless it something complex and “out of the box”, and if that’s the case I’ll tell you upfront and get a signed agreement from you before proceeding.
Peace-of-Mind. It’s scary having open and honest conversations with your bank. I’m in a much better position to listen without judgment and find you the right solution.
More Choice. I have more options at our disposal than a bank. The differences are often hidden in the credit policy.
Help you navigate getting your funds out of KiwiSaver.
Property Planning. I won’t just look at the current purchase but look to understand your short term and long term goals.
Debt Reduction. Help you formulate a debt-reduction plan.
Less Stress. I can’t promise you won’t have stress as buying a property is often one of the biggest financial decisions you’ll make, but I’ll work hard to make it less stressful.
More Reliable. I can work with multiple banks to get you to YES.
Authentic. I will tell you the good, the bad the “what you have to do to get that YES”!
Professional. I belong to Financial Advice New Zealand which is the professional body for financial advisers. That means I must undertake CPD (continuing professional development) and have my advice process assessed regularly against best practice. Think of it like a WOF on your car.
Refer. Often I can connect you with other high-quality professionals like lawyers, accountants etc. to make your life easier.
Independent. I am independent and not affiliated with any real estate company.
Better insight. I can help you interpret a building inspection or a LIM report or point you to a professional who can. I can help you understand the property market and all of the pitfalls.
Easy. I manage my clients completely online and over the phone. I make the process as simple as possible.
Loyal. I’m incredibly loyal to my clients. No matter what’s going on in your life, my door is open to discuss and plan your financial future.
Team player. I work with other professionals to help you achieve your goals.
I can arrange building inspections.
Review building inspection reports and give you plain-English feedback.
Help you navigate around code of compliance issues.
Give you property information from my valuation system to help you make better decisions.
Talk you through making an offer.
Arrange registered valuations.
Help you assess the feasibility of a property.
Manage progress payments on a construction loan.
Help you dig yourself out of a tricky situation.
Help you navigate getting your funds out of KiwiSaver.
Think about your whole financial life, not just the mortgage.
Make sure you understand your risks and have a strategy in place to manage them.
Always act in your best interests, not mine.
Look after your friends as well as I look after you.
Keep you up-to-date with what is going on in the property market.
Help you with your fixed rate maturities.

If you would like a “no obligation” discussion around your options for buying a first home, or just need someone to run your budget by, feel free to reach out at 027 436 8367 or click here

/by Trish Greenwood

Advice, First Home, Kiwisaver, Mortgage, News, Uncategorised

The First Steps………..

Every journey begins with the first steps and the good news is your mortgage adviser will be able to ensure that you know how and when to take those steps!

As a mortgage adviser, my passion is helping first home buyers!

Getting ready to become a first home buyer is important. There is quite a few boxes to tick before you are able to get your first home loan approved.

What Banks look for from First Home Buyers

Deposits – most banks would prefer you to have a 20% deposit to buy your first home, however, the good news is that a good mortgage adviser will often be able to source mortgages for people who have less deposit than this.

Also, if you qualify, you may be eligible under the First Home Loan Scheme. Included in this scheme is the First Home Grant which may mean you can qualify for FREE money. For a couple, this means: up to $10,000 for an existing home and $20,000 for a new home!

Your deposit can be made up of, your KiwiSaver funds, (all apart from $1,000), the first home grant, cash savings, family assistance by way of a gift.

Income – the lender needs to be comfortable that you can afford the mortgage repayments.

They consider your income and look at:
- How long have you been with your employer? TIP: don’t change your industry if you are looking to purchase in the next 12 months!
- How long you have been in the same industry?
- Do you have a stable history of employment?
- Repayments are calculated at a much higher rate than the market rate to ensure that if rates increase you can still afford your mortgage payments.
- You can sometimes use the income from a flatmate or boarder.

Credit History – It is very important to have good credit history if you wish to get a mortgage. This becomes even more significant when you want to borrow more than 80% of the Loan to Valuation Ratio. In New Zealand, most banks and non-bank lenders will rely on your credit report which shows a credit score for you.

If you have had credit issues in the past, including unpaid fines it is a good idea to check your own credit record. You can read how to do this here

Remember every time you enquire about borrowing money, there will be an enquiry loaded against your credit score, whether you borrow funds or not. Lenders will be concerned with too many enquiries on your credit score so don’t take this lightly. Talk to a mortgage adviser first.

Your mortgage adviser is aware of this and will ensure that any credit enquiries on your credit score are limited.

Bank Account Conduct – As part of the due diligence for a mortgage the lender will review your account conduct. They are looking to ensure that you have disclosed all debts and other financial commitments, but they are also looking at how you manage your bank accounts. Your mortgage adviser will help you understand how to “clean up” your accounts if this is required, as part of “getting mortgage ready”. You must have a record of paying your bills on time, every time. This includes not missing a credit card payment and having no unarranged overdrafts.

Other Debt – To get a mortgage as a First Home Buyer, you will need to ensure that you have repaid any short-term debt such as personal loans, car loans, credit card debts, hire purchase etc. Also avoid “buy now pay later” schemes as lenders don’t like these.

Unsure? or Confused? No problem – just contact Trish for a no-obligation chat to talk through your options and how we can work together to get you “mortgage ready” feel free to reach out at 027 436 8367 or click here.

Remember my service is FREE!

/by Trish Greenwood