Thank you for taking the time to complete your mortgage snapshot.
We will email you a summary with a little extra information.
If you would like a comprehensive borrowing summary prepared by one of our knowledgeable staff, please fill in the online profile.
To keep learning we have a variety of resources available to you:
- Youtube playlist of 1 minute long videos explaining key principles.
- Youtube playlist of Mortgage Secrets.
- Check out these blogs about property investing.
And here is a quick overview. Banks and other financial institutions calculate your loan affordability by checking two things:
- can you afford to service the loan?
- do you have a large enough deposit in cash or equity (or gift)?
First – Servicing.
Servicing is your ability to make the loan payments without missing any. Banks do not like it when people skip or are late with mortgage payments. To make sure you can afford the mortgage they take a look at your monthly income living costs and more specifically what uncommitted monthly income you have (UMI). They take into account debt servicing, the number of dependents, your number of vehicles, rental income, boarder income, commission and wages amongst many other factors. Each bank calculates this differently and when you work with an iRefi.co.nz mortgage adviser they will take these factors into consideration when choosing which bank to suggest.It is not common knowledge but banks have different ways of calculating this and have different offers that change all the time.
Second – Deposit.
Banks do not loan 100% of the value of a single property. You will have to pay a deposit or put up an equity deposit. We can discuss this in-depth over the phone but normally investment properties require a 20-30% deposit, and owner-occupied homes are easiest with a 10-20% deposit but can sometimes get approved with a deposit as low as 5% (IF you have very good servicing).
To make up the deposit you can use cash savings, a cash gift, accessible equity in another property and for your first house your Kiwisaver funds.
To have the mortgage world explained and to get a comprehensive borrowing summary prepared by one of our knowledgeable staff, please book a phone consultation here but complete the online profile first if you want tailored advice rather than a basic chat.
Thank you to all of our clients. It gives us great pleasure to receive your feedback and hear the stories about how our mortgage help has impacted your lives.