What you need to know about the loan application process

Securing the right finance is becoming more and more complicated; that’s why the role of a Mortgage Adviser is to make the home loan application process as smooth as possible.

New Zealanders that live overseas are facing big changes when it comes to applying for home finance in New Zealand. There are three key steps your Mortgage Adviser can guide you through.

You need a New Zealand Bank account

Overseas borrowers need to have an open and active bank account in New Zealand.

You need two forms of ID

To apply for a home loan, overseas borrowers need to supply two forms of ID to the lender they’re applying with.

You need to supply documentation

The borrower will need to supply an original copy of a utility bill or bank statement with their name and address included.

For residents living and working in New Zealand it’s not quite so complex, but there are still some important things to know.

Deposit, loan and purchase costs

You need to make sure you have enough saved for your deposit. Your Mortgage Adviser will be able to tell you how much you need , taking into account the area where you’re buying, how much you can comfortably spend and regulation around Loan to Value Ratios.

On top of your deposit, you need to make sure you have budgeted for other purchase costs such as loan application fees, insurance and valuation fees. Again, this is something your Adviser can help you calculate.

Finalising the loan

As you secure your new property, your home loan application needs to be completed - with supporting evidence - and lodged with your chosen lender. The application is then assessed in full by the lender. If they come back requesting additional information, you’ll need to supply it before the loan is approved.

This is where your Mortgage Adviser can be really useful - they know exactly what each lender needs, reducing the risk of going back and forth throughout the application process.

As the mortgage market continues to evolve, it’s more important than ever before to work with an Adviser. Having an expert guide you through the ever-changing market can make all the difference.