Where should your extra savings go when you have a mortgage?

When a bank assesses your ability to repay a mortgage the assessment rate it’s higher than the actual interest rate. So for example, if your home loan interest rate is 4.00% the bank may be looking to see if you can repay 7.25% or even 8%! Now what that means for the bank, is that they are being conservative and also allowing for interest rates to rise (which […]

Read More | 12 Feb, 2019

Where should your extra savings go when you have a mortgage?

When a bank assesses your ability to repay a mortgage the assessment rate it’s higher than the actual interest rate. So for example, if your home loan interest rate is 4.00% the bank may be looking to see if you can repay 7.25% or even 8%! Now what that means for the bank, is that they are being conservative and also allowing for interest rates to rise (which […]

Read More | 12 Feb, 2019

Where should your extra savings go when you have a mortgage?

When a bank assesses your ability to repay a mortgage the assessment rate it’s higher than the actual interest rate. So for example, the bank may be looking to see if you can afford 2 – 3% higher than the current interest rates. Now what that means for the bank, is that they are being conservative and also allowing for interest rates to rise (which they no doubt […]

Read More | 12 Feb, 2019

Stage 5. Approval for your home loan and Progress payments

After your valuation is done the next stage is to apply for your finance. This follows a pretty standard procedure and your broker will step you through this. Allow 2 weeks after your valuation has been completed for the approval, and then another week for documents to be delivered to you, signed and returned. All up 3-4 weeks should be ample, but keep this in mind when chatting […]

Read More | 12 Feb, 2019

Stage 4. Getting your Fixed Price Building Quote and your Valuation

So our next stage is for you and your agreed architect and or builder to agree on a fixed price building quote so that we as your brokers can get a valuation done. Here are the items we need to get a valuation done on your property and progress your application. A fixed price building quote. Note – this is not an estimate, it’s not an invoice, it’s […]

Read More | 12 Feb, 2019

Stage 3. Planning

OK – so on our last email we looked at the land purchase, this email will assume you’re onto stage 3 – Planning what you want to build! Now remember, you can keep this email to read later if you’re not at this stage, or you can zoom ahead to the other stages as you need to make this process move at your pace: XX XX Links to […]

Read More | 12 Feb, 2019

Stage 2. Buying your block of land.

Now let’s get started with your land”¦.  (remember, zoom ahead or backwards as often as you need). Land You’ve found a block you love! Fantastic! Now the first instinct here can be to run and place a contract on it straight away – but wait! Firstly: Questions to ask the agent or seller (vendor) when you view the land (to let your broker know): What is the zoning […]

Read More | 12 Feb, 2019

Stage 1. Is building right for you?

If you’re in that whole thinking stage of – do we buy an existing home or do we buy a block, here’s a great place to start reading before you take the leap and buy that block. Stress levels Buying any home brings with it a measure of stress (and excitement) – but building can emphasise these feelings even more so. I always say that a real estate […]

Read More | 12 Feb, 2019

What I say when asked”¦ “Why would I use a Mortgage Broker?”

While we’re extremely fortunate and proud to have some incredible clients who absolutely love to answer this question on our behalf, we also love to let people know what we do and why we want to help you. Firstly, we don’t charge for our services.  Our fees are paid by the lender but only once we have found you a fantastic option for your situation.  Over 50% of […]

Read More | 12 Feb, 2019

Gift Funds.

If you’re receiving gift funds from a relative (typically!) most banks will require they write a letter confirming that they’re giving you the funds, suggested wording is as follows: To whom it may concern, I  <<insert full name>>  am gifting unconditionally to my  <<insert relationship>> <<insert full name of gift recipient>> the amount of $XX,XXX.00 This gift is without requirement for repayment and is not interest bearing. SIGNED: DATE: If […]

Read More | 12 Feb, 2019