Home Loans and Refinancing.

Mortgage finance can be used to purchase a home, refinance debt, or purchase an investment property. You can also use your mortgage for many other financial needs.

Who can help?

When people think of getting a home loan, their first thought is to check with their bank. For most people this is a good option, however, each bank has slightly different requirements and lending offerings. This is where your financial adviser can help. We have personal relationships with all the big banks and lenders, so, we can show you the options available and help you to navigate the specific requirements.

If your bank says no! We then also have access to a large range of non-bank lenders who offer flexible terms and very competitive interest rates for non-conforming borrowers.

Services we provide:

Property finance – If you’re looking to purchase your first home, upgrade to your dream home or purchase an investment property or bach.

Refinance existing mortgage – If you have an existing mortgage and want to look at your options with other banks or non-bank lenders, we can help.

Bridging finance – If you have a gap between sale and purchase or need some time to get your property ready for sale, we have some options for you.

Interest-only loans – Need some time to get your finances in order before refinancing your mortgage or establishing a good payment history.

Non-conforming mortgages – We have access to an array of non-bank lenders with very competitive interest rates and more flexibility.

Who is a non-conforming borrower?

Non-conforming borrowers fall into several categories:

Borrowers with bad credit who have several paid or unpaid defaults;
Overcommitted with multiple debts and a history of payment dishonours;
Self-employed borrowers who sometimes can struggle to prove income;
Casual workers or people who work on commission again struggle to prove income; and
Older Borrowers who may not be able to get a term that fits their affordability.

Some borrowers may fit into more than one of these categories making it even harder for you to gain finance from your bank. Below are some examples of borrowers we have been able to help:

Example 1

Recently we helped a client who had $472,000 made up of 3 separate mortgages, 2 credit cards and a bank personal loan. Along with that, they had Land Rates arrears and 2 other high-interest loans which was all costing $3,980 per month. The new mortgage repayments are $2,895 per month a saving of $1,085 per month. The borrower was 57 years old with good credit and an LVR (Lending Value Ratio) of 80%.

Example 2

We have a couple aged 32 & 30 who had some issues come up and accumulated extra debt to help their family. Coupled with an unexpected pregnancy & the loss of one income they got behind on their mortgage and needed help to refinance. The existing mortgage was at a rate of 7.30% and repayments were $4,934 per month. We were able to consolidate all debt and get them a mortgage of $892,000 at the rate of 5.44% and monthly repayments of $4,895 with no other debts to pay.

Mortgage terms explained:

Fixed-rate – A fixed interest rate is when you have the balances of your loan locked into an interest rate for a fixed period. The common fixed terms are 6 months, 1 year, 18 months, 2 years, 3 years, 4 years and 5 years.

Floating – A floating or variable rate is an interest rate that can go up and down meaning your minimum repayments can go up and down depending on the current floating interest rate.

Interest only – A interest-only loan is when you are only paying interest on your loan and not any principal. This means your loan balance will remain the same.

LVR – Or lending value ratio. This is how a lender calculates the amount of equity available in your property.

An example if you were to purchase a home for $1,000,000.00 and have a deposit of $250,000.00 your LVR would be calculated as follows:

$750,000.00 / $1,000,000.00 = 75%

Should I choose fixed interest or floating?

Both options have advantages and disadvantages. Making the right decision can impact how long it takes you to repay your mortgage. Let’s talk about the benefits and disadvantages of both options.

Fixed interest rates advantages:

Fixed interest rates are usually lower than a floating interest rate;
If interest rates go up your rate won’t;
Your repayments are guaranteed not to change during the fixed-rate term; and
It can save you a lot of interest over the term of your loan.

Fixed interest rate disadvantages:

If interest rates go down, you must wait until the end of your fixed period to refinance; and
Early repayment fees can be charged if you repay some or all of your loan before the fixed period.

Floating interest rate advantages:

Your interest rate goes down as the floating rate does;
Lump-sum payments can be made without penalty with most lenders; and
You have the freedom to repay as quickly as you like.

Floating interest rate disadvantages:

If the floating interest rate goes up, then so does yours; and
Floating interest rates are often higher than fixed rates.

Choosing the right option can be a tough choice and it really does depend on your income streams and spending habits. If you are unsure, speak to us about this so we can find the best option for your circumstances. Perhaps having a mixture of both will work best for you and that is what we are here to help you with.

How to pick a fixed interest rate term?

Picking a fixed interest rate term can be tricky. As financial advisers we have access to information from multiple lenders and economists who provide information that we can pass onto you. Information such as if interest rates are likely to go up or down in the coming months or years. We will be able to guide you through selecting the best interest rate for you.

How do I apply and qualify?

We need to collect some information from you to help us find the right solution for you.

Some of the information we need is listed below:

6 months bank statements (we can provide you with a bank link to make this easier);
ID preferably a valid NZ Driver’s License or NZ Passport; and
Proof of address i.e. bank statement or utility bill.

What other checks or information may be needed:

Credit Check;
PPSR Check;
Property Valuation; and
Sale and purchase agreement.

Why should you use a financial adviser?

Using a financial adviser has many benefits and some of those are listed below:

Our service in most instances is free and personalised. You are not just a number to us;
We put the work into your application, so it takes the pressure off you;
Financial advisers have access to lenders you may never have heard about;
We have access to information that will help you make an informed decision and can decipher financial jargon so it’s easier for you to understand; and
As a registered financial adviser, we are genuinely interested in helping you pick the right option for your needs, rather than selling the product our employer offers.

Apply by calling us on 0800 259 110 so we can chat to get you started.