Top 20 Tips
At NZMF we are in this for the long term with all our clients. We are asked many questions about what it is we do or how can we help. Is it just the mortgage that we arrange? Once we have the loan is that the last time we see you?
At NZMF we’re different. We work with you over the long term and from your first home through to your tenth. Whether you’re starting over or retiring we can work with you to ensure you achieve your financial goals.
Here are some frequently asked questions that we hear every day from kiwi home owners just like you!
1) When’s a good time to call a broker?
Buying or selling, how much can I borrow? Need pre-approved finance, Fixed rate is expiring on your current mortgage, there’s been a change in your circumstances you didn’t see coming, simply wanting to make sure you have the best deal, or wondering whether you can consolidate your loans or struggling to manage the bills and the mortgage payments too. If in doubt call us, the cost of the call is free, we offer friendly, professional advice and it could be the best call you make on your financial future!
2) How much can I borrow?
As a rule of thumb you an borrow 3 ½ to 4 times your gross annual income so if you earn a household income of $80000 then you can borrow around $280000 to $320000. However please remember this is an indication only and not a pre-approval from a lender. You need to complete a full application for a pre-approval to be valid click here to apply on line and one of our brokers can contact you to get your pre-approval underway now!
3) How do I get a pre-approved mortgage?
Call us now, we help you put the paperwork together so that you can start looking knowing exactly how much you can spend. This also makes you a cash buyer so you’re in a much better negotiating position when you do find the house of your dreams.
Supporting documentation that may be required can be –
- A completed home loan application form
- Bank and savings statements
- Registered valuation
- Sale and purchase agreement
- Credit check
- Proof of ID
4) I want to buy my first home- do I need a deposit?
No, we have helped thousands of people just like you into their new homes with no deposit required.
5) How do I know I can trust our broker to get us the best deal?
We are all members of the NZMBA and work full time in this field. At NZMF we fully disclose to you our experience, range of lenders, background and qualifications upfront when we meet you. This is essential so that you know you are dealing with someone whose advice you can trust on the biggest financial debt you are most likely to take.
Mortgages are very transparent i.e. what you see is what you get! If you’re being recommended a deal then you should receive a full explanation as to why this is the best one for you. Not just where the broker is best paid. However, its not just interest rate alone that should influence your decision, ongoing bank fees, different credit criteria or whether a bank is investor friendly or is flexible to suit your changing circumstances are all factors to be considered.
6) What is it that you do as an NZMF broker and how are you different?
As your broker our job is to find you the best deal whether that’s the best interest rate, lowest fees, property investor friendly bank, consolidating loans or being able to release equity within your home. We look at all your options at the same time using our expertise. We offer friendly professional advice over the phone for free. And in most cases there is no charge for our services. However there are circumstances where there is a broker fee for deals that require more time to complete. If there is a charge for our service this will be fully disclosed to you.
AT NZMF we don’t just do your mortgage and then you don’t hear from us again. Our value to you is that we are in this for the long haul and work with you throughout your financial life. A mortgage is a huge commitment but it is only the beginning. Unexpected mishaps can occur and right through to retirement you will be making financial decisions that affect you and your way of life. We like to keep in regular contact with you; newsletters, phone calls and a financial health check are all part of the service.
We also offer a one stop shop on risk protection and insurances so we can take care of it all. So you can concentrate on your work and having quality family time with peace of mind that all your finances is taken care of today!
7) Can you help - I don’t understand even though we pay our bills on time we don’t seem to be getting any further ahead?
It’s always good to review your finances and see if you are getting the best bang for your buck. The home loan is most likely your biggest outgoing. Put our expertise to work and see what we come up with!
8) My fixed rate mortgage is up soon do you take a look at this?
Absolutely! This is always a good time to call us and see what your options are.
9) I want to lower my repayments can you help?
Yes, we are experts at restructuring your mortgage so you can meet the repayments.
10) I’ve heard the phrase mortgage stress what does this mean?
Mortgage stress is where people are struggling to meet all their commitments. With property prices having increased so dramatically, Kiwi’s have had to borrow in record numbers and interest rates climbing its difficult to stay on top of the mortgage and all your other bills too. Late or missed payments, dishonours, penalty rates all this is creating mortgage stress i.e. the stress of staying on top of your mortgage payments. Call us and we can help review your finances and take the stress away!
11) If I put all my short term debts into the mortgage won’t I end up paying more interest?
This type of arrangement is commonly phrased as debt consolidation. Rolling all your debts into the one loan and having the one repayment. This is something we strongly recommend to all our clients where appropriate as (a) the home loan is the cheapest form of finance and (b) for budgeting purposes one payment is always easier to manage than many, also you can match it up to your salary or wages cycle too so you don’t get behind.
So will you pay more interest? In short- No! BUT only if you take the money you were repaying on the short term debts and put it straight into the mortgage. The mortgage is always the cheapest form of raising finance so for the same $$ amount you will be paying more off the debt and less interest and that’s got to be good.
12) What’s a mortgage holiday and is this good or bad for me?
A mortgage holiday is when you stop making payments for 3 months. However the interest costs still get charged to your loan. It is good in one sense that you don’t have to make payments for that time period. But bad on the other hand as you are adding to the amount you owe by the amount of the payments you have missed. It really depends on your individual circumstances as to whether you have to do this.
13) My property has gone up in value since I bought it- how can I get my equity out?
Yes, a top up on your existing loan is very straight forward process. Repaying the credit cards and debt consolidation, renovations, the new car or going on holiday or are all reasons to top up the mortgage.
14) My property has fallen in value since I bought it- can I still refinance?
This depends on how much your home is worth compared to what you owe. Give us a call and we can talk you through all the options.
15 I’m in arrears can I be helped?
Yes we help you. With current interest rates and record debts for kiwi home owners this is more common than people realise. Mortgage stress is very real. Let us take the stress away, we can tidy up your arrears, consolidate your loan and get you back on track today.
16) The bank has issued a PLA notice can this be stopped?
We offer rescue packages to clients who want to keep their home. Don’t wait until its too late call now and let us find out what we can do to help.
17) What is a financial health check and how will this help me?
A financial health check is a full review of your current financial position, how much you earn, how much you pay out, what you owe and what you own. We can then assess your current situation and see if we can assist you to save money. We’re always looking for ways to save our clients hard earned money. Use our experience and expertise to see whether you are getting the best deal on your home loan now.
18) What is home equity release and how does it work?
Home Equity release allows you to free up the ‘equity’ or cash that you have in your home and put cash in your hand. This can be either by way of a lump sum amount, a regular payment or a bit of both. This is aimed at those of you nearing retirement and commonly used to maintain and renovate the home, assist family members, or update the car and other little things so you can enjoy your retirement just that little bit more without the worries of how you’ll pay the bills. There are several suppliers of this type of mortgage and you need to fully understand this type of contract you are entering into. At NZMF we support this type or product. If you’ve worked hard and now have the opportunity to do those things you’ve always wanted then this is a means of making it happen - so why not! There are costs associated and we fully explain this to you and your family members (if that’s what you’d like) so there are no surprises for anyone.
19) How do I get started on creating wealth through property?
Property investment is a favourite pastime for many kiwis that are looking ahead and thinking about retirement. Many of our brokers are property investors themselves and know the ‘ins and outs’ when it comes to creating a portfolio. Getting the right advice from the start is a must! LAQC’s, special tax codes, depreciation, negative gearing, cash flow positive, yield, gross and net returns. Talk to us we’re the experts who know the jargon and can explain it to you in plain English.
20) What is the New Zealand Mortgage Brokers Association?
The New Zealand Mortgage Brokers Association (NZMBA) promotes standards of professional and ethical conduct, including expert knowledge, integrity, competency and service to clients, lenders and the public of New Zealand. The NZMBA provides education, legislative and regulatory representation, and public relations for our members while acting as a forum for the discussion and development of common business interests. You can see the NZMBA's website at www.nzmba.co.nz