Second mortgage for new homes & bridging finance
With the Reserve Bank restrictions on low deposit home loans we are still helping so many New Zealanders when their bank is unable to assist due to funding restrictions. A second mortgage can bridge that gap between an 80% mortgage and your deposit for first home buyers. Many clients are now choosing to use their KiwiSaver funds and HomeStart Grant to buy their first home. Often, they have minimal savings as with rent, children and normal living expenses, it is so hard to save. So now there is a solution for first home buyers, with a low deposit, when their bank says no.
The second mortgage will usually be for a short term, as the goal is to try and reduce this quickly, to either pay it off in full, consolidate it with you first mortgage. Property improvements and capital gain can also assist when you are looking to refinance and consolidate this with your home loan.
Existing home owners are also able to use a second mortgage to cover a more expensive purchase such as a car, a boat, or to cover say home extension costs, even a deposit on a new homer or rental property. In some instances, their bank will not agree to increase the existing home loan so additional short term bridging finance can be a solution until sale of an asset allows repayment or an alternative long term finding solution is arranged.
If you are a new home buyer or an existing home owner with equity in your property and need extra funds to achieve your goals, contact us, as a second mortgage may be the answer.