Are you a First Home Buyer looking to buy a home with less than 20% deposit?
Did you know the reserve bank restrictions of limiting the lending to 80% of the value of the property, only applies to the registered banks in New Zealand?
This ruling was not to stop first home buyers from being able to borrow money.
It was to help stabilise the lending portfolios of New Zealand registered banks from disaster, whilst also trying to stem the out of control housing market.
Does this measure mean you can’t buy a home now with less than a 20% deposit? OF COURSE NOT!
As specialist mortgage advisers, we work closely with first home buyers to ensure that your finance is arranged and that you are able to purchase your first home.
You see it is not only our job to help you with arranging your home loan finance for you. We will work closely with you by helping you with negotiating on a property, provide free property reports or even assist with auction properties. You see we are like property buying coaches.
We have access to banks and non-bank lenders that can assist you towards being able to buy your first home, even if you have a deposit with less than 20%.
Did the Bank say sorry we can’t approve your loan? Well, don’t let that stop you from making the dream of owning your first home a reality!
If we can’t source a loan for you from a mainstream bank then you have to consider other options such as non-bank lenders.
I can hear you say but the interest rates and fees will be higher? Let me tell you, that the bank potentially would have charged you a higher interest rate anyway, due to having less than 20% deposit.
This is what they call a low equity margin.
It is a percentage they add to the standard rate. The margin is only reduced or removed once the equity in the home is greater than 20%.
Another fee that the banks may charge is what is called a low equity fee. It can be charged as a one-off upfront fee.
See, being told no by the bank is not necessarily the end to your dreams of being a homeowner.
With a non-bank lender, you will not be stuck with a higher interest rate for the life of the loan!
Yes, as the value of the home increases and the debt level reduces you will, therefore, be creating equity in the property.
This enables you to negotiate better rates with your lender, or re-finance to another lender who is willing to give you a better deal when it comes time to review your loan.
There are a number of options available so being told no by your bank is not the end of the dream of owning your first home.
Actually, why even bother going to your bank when we can do it for you saving you time and money. Not to mention being able to utilise the experience and skills of a SMART Specialist Mortgage Adviser.
The service we offer is FREE and saves you time and money, as you don’t need to take time off work for meetings as we can do it all online.
What’s more, we can also help arrange your mortgage insurance requirements too. This means that you don’t have to go looking for someone to take care of that requirement for you saving you time and money again.
With our experience and expertise, we will be able to customise a home loan to suit your budget and get you the protection that you need.
So if you are in the market to buy a home, or have a family member or friend that needs help why not contact us today to see how we can assist you.
Click the link below to get your Free Copy of The First Home Buyers Guide.