Why work with a mortgage advisor? Finding a lender who will say yes to your mortgage
In a perfect world getting a mortgage would be simple and straight forward, however for many people it’s a complicated and often difficult process especially if you fall outside what a bank would define as a standard customer.
Budding home buyers often face hurdles due to how banks assess their personal and employment circumstances, or due to the size of the deposit.
Factors such as:
- Term of employment with current employer - For low equity loans (<20% deposit) this can be very important.
- Salary/overtime/bonuses/benefits - Lenders assess differently
- Debt (credit card, student loans, other mortgages, personal loans)
- Credit history - This can have huge impact. We work with lenders specialising in this area.
- Deposit amount - Note lenders often like to see 5% of genuine savings even where buyers have received gifted deposits.
- Type of house (new build, apartment etc) - What you are buying matters
- Visa/residency status
- Child care/child support/WFTC/family support
- Boarders - There is a significant difference in how each lender assesses these.
- Overseas income - you may live in NZ but earn overseas income. Each lender will look at you very differently.
Can all impact your ability to borrow and what lending criteria will be applied.
Many people find they simply cannot access a mortgage in their current situation from a mainstream bank.
It is important to remember when working with a Loan Market adviser, that whilst our bread and butter is certainly selecting between the mainstream lenders, we also have a portfolio of lending options with large respectable companies that choose not to be banks. These lenders can be much more creative with their policies and don’t fall under the Reserve Bank of New Zealand legislation.
If speaking with your bank hasn't helped, a mortgage adviser can take another more extensive look at your affairs and often unlock the door on a home loan.
Working with a mortgage adviser is a great way to save a lot of leg work, confusion and often rejection from lenders.
A good adviser will know each lender’s criteria well and can identify those who will look at your situation more favourably.
They can help position your application strongly and even think outside the square by using a range of lenders and products to get you onto the housing ladder.
For example an adviser could look at lenders you might not be aware of who, for a slightly higher rate might work with a lower deposit and as equity builds they can then help you refinance the mortgage with another bank or lender offering more favourable criteria and lower interest rates.
While you’re working full time and trying to raise a family it’s often a huge ask to be able to visit each lender and put forward your case, even more so when you have extenuating circumstances which make you a difficult prospect for lenders to comprehend.
The team at Loan Market Queenstown, Wanaka & Central Otago take the hassle out of home loans by comparing and negotiating interest rates and lending criteria from the widest range of lenders in New Zealand to find the right mortgage for you. Often this can enable our clients to get into their first home sooner as well as saving time, money and stress.
Make sure you get along to one of our upcoming events that will help prepare you for your home purchase.
Wanaka First Home Buyers Evening
30th October, 2019. 5.30pm-7pm
Wanaka St John Rooms, 4 Link Way, Wanaka
Get your tickets here!
Cromwell Home Buyers, Owners & Investors Evening
31st October, 2019. 5.30pm-7pm
RSVP by emailing firstname.lastname@example.org
Queenstown Home Buyers, Owners & Investors Evening
14th November, 2019. 5.30pm-7pm
Queenstown St John Rooms, 10 Douglas Street, Frankton
RSVP by emailing email@example.com