Changes in the lending market
When it comes to financing your next property purchase, it’s becoming more and more confusing with government restrictions in place and banks continually updating their own individual lending criteria.
A mortgage Adviser can not only help you secure the right loan, they can help you understand the complexities of the current market. Here’s just three things they can do.
They’ll calculate LVR
One of the most complicated areas of lending is the Loan to Value Ratio (LVR) rules. Not only has the Reserve Bank implemented restrictions to LVR, but lenders are also introducing their own rules on top of the RBNZ regulation. What this means is that different banks expect different things from their borrowers when it comes to their deposit. Some require a substantially larger deposit than others.
A Mortgage Adviser has visibility of what each lender is doing, which means they can identify the right one for your circumstances.
They’ll get you the right pre-approval
With the real estate market operating at a peak level, banks are becoming a lot more careful around what properties they lend against. Having pre-approval in place is not enough to ensure a bank will approve a home loan. When you find a property you want to buy - particularly if it’s an auction property - a Mortgage Adviser can assess the relevant sale documentation and go to the bank to get unconditional approval for that specific property.
They’ll help you navigate bridging finance
If you need to buy a new property before you sell your existing one, you might run into complications with bridging finance if you don’t have the right advice. Lenders are tightening the rules around bridging loans. When you work with a Mortgage Adviser, you’ll understand what banks require and you’ll also be steered towards the lender that offers you the right finance option.
In a changing market, your Mortgage Adviser is a valuable asset. Their job is to arm you with the right knowledge and the most suitable loan options so that you can achieve your property goals.