A Low Deposit Home Loan gives you the opportunity to live in your own home, being a dream of most New Zealanders, despite the new Reserve Bank rules which restrict home ownership for first home buyers. More people are now looking to Non Banks and private lenders for help as first home buyers, or when refinancing, as the traditional High Street Banks are making home loans and mortgages beyond the reach of so many hard working and ambitious home buyers. You can confidently say that historically most people have created more wealth through property ownership and paying off a mortgage, than they would ever have managed to do, through savings from their regular wages or salary. Many prospective purchasers are using their KiwiSaver funds as a deposit and this can even assist them to reach the 10% deposit level.
In recent times we are getting more enquiries where parents are happy to use their home as part security to help out, as few people have much more than 5% saved. We often have assisted with an 80% mortgage with the balance, less any savings if any, secured against a guarantors property. YES, right up to 100% Home Loans.
Another very happy couple, on good incomes, purchased their first home with 10% savings plus a 80% Home Loan and a 10% secured personal loan. YES, a 90% Home Loan. Their own Bank had said “NO” as they had no funding at that point for Low Deposit Home Loans.
Once you purchase your own home, you have the security of not being evicted by your landlords, as and when their "best mates" want to move in, or may be, they just decide to sell on you and give you the boot. Would you rather pay off your own home loan or your landlords rental investment?
The global credit crisis, with the high number of mortgagee sales, then the period of slow recovery, which then lead on to areas with significant price increases, especially in Auckland, has made it increasingly hard for first time low or no deposit home buyers to either buy an existing, or build a new home. Not just is it the increased mortgage deposits that are required by the Banks and whether it is gifted, saved or borrowed, there can be issues with the Residence Permit and your Returning Resident's Visa stamps in your passport, the nature of your deposit / guarantor and how long you have been in your jobs. Just mention that you are recently self employed or have a credit issue and they show you the door. If you have a low mortgage deposit, or circumstances that do not work for your Bank, it costs nothing to ask!
If you are looking to refinance, or for bridging finance, you may have just had a bad experience with your Bank, or be one of those thousands of borrowers whose lender has just shut up shop and gone, leaving you with no options to consolidate debts, top up for home inprovements or options to fix or float at competitive interest rates. Do you ever wonder what happened to big names like Wizard Home Loans, United Home Loans, Bluestone Mortgages, Pioneer Mortgages, Argosy, Freedom Home Loans, NZF Home Loans and Tasman Mortgages? If you are with one of these or your Bank Manager has said NO, it's time to contact us to look at your refinance options.
Those who already own property may be looking to trade up or down and require bridging finance. Most Banks will not entertain this unless an unconditional sale already exists on your current property. We have a number of private lenders who will consider bridging options, so you can buy the home you want now, or even to stop a mortgagee sale by your Bank, which will then allow you time to sell without being under threat. This may also include funds to "finish the deck", "paint that bathroom" and cover your monthly interest costs. Once again a mortgage solution that does what you require!
So if you are not getting the answers you want from your Bank for your Low Deposit Home Loan, because of insufficient savings, part gifted deposit, too much short term debt, or you just do not fit "our bank credit policy", contact us for a second opinion, as you can't always bank on your Bank especially in difficult times!