Why use a mortgage adviser - The Right Home Loan For You When Building
Why work with the mortgage adviser – The Right Home Loan for you When Building
There are many great reasons to build your very own home, from being able to incorporate all those dream house features you have always wanted, making an architectural statement or it financially making more sense as an investment for you and your family.
Not only that but as an investor it is exempt from RBNZ legislation so you can invest with 20% deposit rather than 40% deposit.
While there is still hot competition for sections in the Southern Lakes and Central Otago, there are many sub divisions coming to market now and we are dealing with a lot of enquiries in the new space.
Whats trickier is working out which bank or lender is best for your specific situation.
With each bank treating a new build slightly differently the process can be confusing and time consuming.
At Loan Market, we have experience with a wide range of mortgage products from the widest range of New Zealand's major lenders.
- Some lenders will only consider cost to complete valuation, some limit how much they will consider and other(s) will consider every cent which can have a significant impact on your LVR and interest rates when we negotiate.
- Requirements within fixed price contracts vary between the lenders
- Even though you may be signing a fixed price contract lenders factor in different contingencies varying from 0% to 15%. (This can have a significant impact on affordability)
- LVR required varies significantly between lenders if you would like to do a self-build, ranging from 65% to 80% LVR
- Some lenders will consider up to 95% LVR for ‘turn key’ builds. Turn key being you pay the deposit and nothing else until completion.
- LVR requirements for sections can vary dependent upon size and whether fully or partially serviced
If you have reserved a section but still awaiting title to be issued, it’s not too late to call us to review which bank is the best for you and to ensure your LVR is the best it can be and on terms to suit you.
Call us now to review your position.