As a mortgage broker, we know that buying your first home is the biggest decision of your life and this decision need to be done with a company that really understand which is the best home loan for you. At Kiwi Mortgages, we advise & guide you to owning your own home as easy as possible.

If you are a KiwiSaver member, you may be eligible to get the first home grant by Government to buy your first house. First of all one of the most important thing is that, your expectations align with your budget. That means what you can and can’t afford.

KiwiSaver :- If you have contributed at least 3 years for KiwiSaver, you may be eligible for a KiwiSaver First Home Grant and/or KiwiSaver first-home withdrawal.

KiwiSaver First Home Grant :- If you have been contributing KiwiSaver for 3 – 5 years, you may be eligible for a First Home Grant of up to $10,000.

KiwiSaver First Home Withdrawal :- You can apply to your KiwiSaver provider to withdraw some of your savings to put towards buying your first home. However at least $1,000 must remain in your KiwiSaver account

KiwiBuild :- The KiwiBuild program provides affordable housing for first home buyers or those in a similar financial position who have previously owned a home.

Eligibility to purchase a KiwiBuild home depends on several factors including your household income.

First Home Loan :- First home loans are issued by selected banks and other lenders under the Kāinga Ora (previously Housing New Zealand), you may be eligible to get a home loan with only a 5% deposit.

Help for Bank Deposit

Family or Friends: – Sometimes friends or family combine their savings for a bank deposit. This means you can share the cost of home loan repayments, bills and maintenance.

Gifting: – When someone you know gives you or lends you some or all of the money you need for your bank deposit.

Guarantees: – Some lenders accept another property (for ex your parent’s property) as security on the loan with a guarantee from the owners of the property being used as security.

Before buying a property, you should research about the property as much as you can. Here are 3 ways you can do that-

1. Title Search: – A title search will provide you with all of the records held by Land Information New Zealand (LINZ) for a property. A search carried out to retrieve the documents relating to a property’s history. It includes the current status of the title, including the owner, legal description, easements, land covenants and mortgages.

2. LIM Report: – Land Information Memorandum (LIM) Report provided by the local council which shows the detailed property report and resource consents within 25 meters of surrounding the property. By LIM report, you can check potential issues you may have to deal with in the future.

3. Property Inspection Report: – Bathroom and kitchen fittings, plumbing, drainage, roofing, chimneys, electrical, gutters, outside areas like fences, driveways and paths, retaining walls and wash lines.

Do your research, determine which property you want to buy or can afford, work out your mortgage repayments and any up-front costs, as well as insurance, interest rates, and so on. For advice & consultation call us on Toll Free 0508 33 22 11 or email info@kiwimortgages.net.nz.

The post How Government help to Buying Your First Home appeared first on Kiwi Mortgages.

At Kiwi Mortgages, we are happy to help you. Buying or building a new home or renovating your existing one, we have got home loans to suit.

There are some factors everyone should consider while deciding to apply for a home loan, such as interest rates, monthly income, your ongoing debt repayments, savings, and many other factors. This is where a broker or advisor comes in.

Home Loan Broker – Why you need a mortgage broker?

Finding a suitable home loan, interest rate plays a very important role. An interest rate can be fixed, floating or a mix of both. A mortgage broker considers your financial position, reviews your debt profile, analyses your savings, and works on your behalf with lenders, to find the best competitive interest rates, negotiate loan terms and then recommends a best deal that matches your lifestyle, budget and finance goals.

Types of Loans: If you are not sure, which mortgage is suitable for you, check these mortgage types:-

Fixed Interest Rate Home Loans:- A fixed interest rate lets you choose an interest rate over a fixed period. This can be a selected term, typically ranging from 6 months to 5 years. Over this fixed period your repayments will remain the same. You could break your fixed term but you might be charged a break fee.

Your fixed rate can’t be affected by interest rate changes. So, whether interest rates go up or go down, your repayments stay the same until the end of the fixed period.

Advantages of Fixed Interest Rate:

• Protects you against interest rate rises
• You can pick the time period to suit you; typically, fixed terms are available from six months to 5 years
• You know exactly how much repayment will be over the term.

Disadvantages of Fixed Interest Rate:

• You will not get benefit of falling interest rates
• Restrictions on extra repayments
• If you break your fixed rate term, your lender may charge additional fees

Floating/Variable Interest Rates Home Loans:- With floating rates, interest rate can go up and down in line with market conditions. If you have a variable rate, the interest rate you are charged can be less or more.

Advantages of Floating/Variable Interest Rate:

• You can make extra payments to pay off your loan faster
• Switch to a fixed interest rate at any time
• Your repayments go down if interest rates fall

Disadvantages of Floating/Variable Interest Rate:

• Your applicable interest rate can go up anytime
• If the interest rates go up, your cash flow may be affected, requiring suitable changes in your other expenses

Mix of Fixed and Floating:- Split loan is when you have some of your loan on a floating interest rate and remaining on a fixed interest rate.

If you are not sure “What is right for you? How much you can borrow? What your repayments would be?” get in touch with us for professional advice. Just call on Toll Free 0508 33 22 11 or email at info@kiwimortgages.net.nz. Our team of experienced mortgage professionals, love to help you get the most out of your home loan.

The post How to choose the right Interest Rate for your Home Loan? appeared first on Kiwi Mortgages.

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The assessment of a business loan can be way more complex than a simple home loan. Best is to speak to an experienced mortgage adviser as not all home lending brokers are experienced enough to provide suitable advice for business loans. As a very high-level indication, the lenders’ assessment will include the following:

• Borrower and Guarantor’s profile, which will include their personal historical background, their credit profile, area of expertise, experience and qualification, the capital they propose to introduce etc.
• The proposed business profile, including the industry; unit size; location; competitors; historical financial performance; lease terms; suppliers & customer profile; operating hours and staff profile etc.
• Borrowers’ business plan including their business strategy going forward and financial projections.
• Security offered – type / value of collateral offered

2- How much can I borrow for the business?

The lenders will require a decent contribution from the promoter borrower and how much the lender will be comfortable lending will depend upon their risk perception in regard to the industry, the particular business unit, whether start-up or going concern; client profile / industry experience etc.

For small sized retail businesses, the main banks normally require at least half the acquisition cost be contributed by the borrower. This contribution can be saved cash or collateral security, which normally is equity in residential or commercial property.

In case of established franchise units, few more specialised lenders may lend with nominal deposit from the borrower, but it all depends on how strong the proposal is.

3- What business loan terms are available?

In most cases, for working capital loans, the lenders will coincide the loan term amortization to the existing lease terms but in many cases, the lender can consider providing “interest only” terms for the initial one or two years, again depending on the strength of the application.

In cases of term loan to purchase plant & machinery, the banks generally amortise up to the residual life of the assets or up to 10 years and some cases even 15 years, depending again on lenders’ assessment

4- How do repayments work?

The lenders require the borrower to repay the lending in full within the loan term, which will include the principal and the interest. In some cases, if the lender deems fit, they may allow interest only terms for the initial period of the lending for the client to settle down in the business.

5- How can I use the funds?

In case of business lending for working capital, the banks mostly allow an overdraft limit, within which the borrower must operate. The thumb rule is that the borrower is expected not to exceed arrangements, i.e. account balance must remain within the approved overdraft limit and also, the overdraft account ideally must return to a credit balance at least once within a month – this evidences that there is no hard core element in the working capital funding.

6- What does the loan cost?

The cost of business lending typically will include the lenders’ one-off loan approval fee and on-going line fee and the monthly interest cost. Besides, there will be legal cost for initial loan/security documentation and could potentially be fee for other professionals like business / property valuers etc.

The post Easy Business Loan FAQs appeared first on Kiwi Mortgages.

Aside from the Kiwi Saver withdrawal, to further assist you with first home purchase, this grant is approved by Housing New Zealand to eligible first home buyers, subject to certain conditions.

2- When can I apply?

You can apply to Housing New Zealand once you have found a property or you can also apply for a pre-approval before you start looking for a property to buy – this gives you certainty around eligibility and how much you may qualify for.

3- How much can I get

(i) If you buy an existing home

• • If you buy an existing home, you can get $1,000 for each of the 3 (or more) years you’ve paid into the scheme. The most you can get is $5,000 for 5 or more years.

(ii) If you buy a new home or land

• • If you buy a new home or land to build on, you can get $2,000 for each of the 3 (or more) years you’ve paid into the scheme. The most you can get is $10,000 for 5 or more years.

4- Who can apply / What is the eligibility criteria

To be eligible for a First Home Grant, you must:

• • Be over 18
  • Be New Zealand resident
  • Have earned less than the income caps in the last 12 months

(a) $85,000 or less before tax for a single buyer
(b) $130,000 or less before tax for 2 or more buyers.Not currently own any property

• • Have been contributing at least the minimum amount to KiwiSaver (or complying fund or exempt employer scheme) for 3 years or more. If you have been contributing to a superannuation scheme other than KiwiSaver, call on 0508 935 266 to check that your fund is eligible.

5- KiwiSaver contribution requirements

• • You must have been regularly contributing at least the minimum amount to KiwiSaver for 3 years.
  • The minimum contribution is currently 3% of your total income.
  • The 3 years don’t have to be consecutive, as long as they add up to 3 years’ worth of contributions. For example, if you have been a KiwiSaver member for 3 years but took a 6 month savings suspension, you would not be eligible for the First Home Grant until you had contributed for another 6 months.
  • Contributions must be made from all your sources of income, not just your main source of income.
  • If you are a non-earner you need to make voluntary contributions of at least 3% of the adult minimum wage based on a 40 hour week.
  • If you are self-employed or on a benefit and make voluntary contributions, you need to have made contributions at least once a year for 3 years of at least 3% of your annual income.
  • If you have made a combination of automatic and voluntary contributions, the total amount needs to be at least 3% of your total annual income.
  • Purchase a property that is within the regional house price caps, as below:

• • You must agree to live in your home for at least 6 months from:

(a) the date you buy your home (the settlement date), or
(b) the date the code compliance certificate for the house is issued, if it is a new build.

6- Deposit requirements

• • You must provide evidence that you have a deposit of at least 5% of the purchase price of the house you want to buy or build. This can include money:
  • From your KiwiSaver first-home withdrawal
  • From your First Home Grant approval/ pre-approval amount,
    that you have saved in the bank
  • You have already paid towards the property
  • Gifted by a close family member- If using gifted money, you’ll need to supply a completed declaration.

Our solutions will always be tailored to your situation, to have a no-obligation discussion with one of our advisors, please feel to message us online or call us on 0508 33 22 11.

The post Buying Your First Home – KiwiSaver HomeStart Grant Guide appeared first on Kiwi Mortgages.

Insurance advisers are trained insurance professionals, who typically deal with multiple insurance companies and can provide you quotes from various insurers for covers designed according to your own specific situation and suited to your own specific budget. Insurance advisers also provide ongoing support to you with periodical review of your insurance covers as also with claims.

2- Why should I consider insurance?

All of us face the risk of getting sick or injured and unable to work leading to income loss, or worse, the risk of death. For a small premium, you can transfer the financial implications of these risks to an insurance company and can protect the lifestyle that you and your family have gotten used to, during such bad times.

3- Why should I use an insurance adviser?

• The insurance advisers do not charge you a fee for their services as they get paid by the insurance companies.
• The insurance advisers are committed to provide you an impartial and professional recommendation suited to your needs.
• The insurance advisers are fully trained to tailor various insurance solutions as per your needs and budget and can provide you comparative quotes from various insurers while educating you on difference between various insurers offerings / products.
• The insurance advisers assist you with periodical reviews for the entire life of your insurance policy.
• The insurance advisers are committed to help you during claim time.

4- What services does an insurance adviser offer? Why should I choose Kiwi Mortgages?

• Kiwi Mortgages do not charge you a fee for their services as they get paid by the insurance companies.
• Kiwi Mortgages are committed to provide you an impartial and professional recommendation suited to your needs.
• Kiwi Mortgages are fully trained to tailor various insurance solutions as per your needs and budget and can provide you comparative quotes from various insurers while educating you on difference between various insurers offerings / products.
• Kiwi Mortgages assist you with periodical reviews for the entire life of your insurance policy.
• Kiwi Mortgages are committed to help you during claim time.

5- Do insurance advisers charge separate fees for their services?

No

6- How do I get a quote from Kiwi Mortgages?

You can approach us via our website, email, on phone (Toll Free – 0508 33 22 11) or personal visit to us in our office and our friendly team will look after you.

7- How much insurance should I have?

Ideally, we aim to protect you and your family adequately, but it all depends on your individual situation and your budget – talk to us now.

8- If I already have insurance, can Kiwi Mortgages still help? What happens if I need to make changes to my policy?

Yes we can review your existing insurances and make recommendations on what changes, if any, are recommended.

9- What options do I have for payment of my insurance premium? Can I pay monthly by automatic payment?

Yes, you can make the premium payment monthly or fortnightly by direct debit or annually in one lump sum.

10- What happens if I am paying monthly and I miss a payment?

If you occasionally miss a payment, you are generally allowed to catch up in subsequent months. Should however, you require a premium payment holiday for an extended period of time due to hardship or for any other reason, talk to us for prior arrangements where possible.

11- Do I contact Kiwi Mortgages or the insurance company to make a claim?

You can contact us at Kiwi Mortgages at the time of claims and we help you organise the submission of your claim papers and also, we will liaise with the insurer for an early claim settlement.

12- Do I have to pay my excess if I lodge a insurance claim?

Yes, the pre-agreed excess will be paid by you like any other insurance arrangement.

13- How is my sum insured set?

The insurance companies in modern times have designed various covers to choose from to address the risks of sudden injury or serious illness or worse, the death. These covers, such as Life cover, Medical cover, Disability triggered income loss cover etc are all developed in such a way that an insurance adviser can tailor these covers for you to choose the more pressing ones according to your own budget.

The post Insurance Adviser FAQs appeared first on Kiwi Mortgages.

1. Why should I use a Mortgage Broker?

The mortgage brokers provide their services free of cost. They deal with different lenders and have the ability to provide the options most suited to your circumstances. Experienced brokers like Kiwi Mortgages are able to provide you guidance and professional service in more complex transactions, like construction loans, or commercial loans etc.

2. Is there any fee for using Kiwi Mortgages services?

No, our services are free.

3. Do you provide the same home loans as the banks?

The products and service that you get is the same as the banks would offer directly and will also be at the same terms. In fact, due to our negotiating skills, the loan terms that you can potentially get in most instances is only better and structured more suited to your own individual situation, if arranged through us.

4. What is your best interest rate?

In most cases, it is seen that people like to fix the interest rate on their loan for certain period like 1,2,3 years or more, so it gives more certainty to their household budget, but in some situations, it may be more advisable to have the loan on floating interest rates or a combination of both. It all depends on your situation, the analysis of which we can help with. In New Zealand, currently the banks are offering the historical lowest ever interest rates, ever seen in this country.

5. What documentation is required to get a mortgage?

Again, it depends on your individual situation but at a very high level, the banks require documents to prove your income and your deposit that you propose to contribute, together with your bank statements to verify your personal expenses pattern and also your account conduct. The banks also require to know of your current assets and liabilities.

6. Will my interest rate change?

The fixed interest rates do not change until the period for which they have been fixed expires and then you again have the ability to re-fix them. The floating rates can change any time.

7. Should my mortgage be fixed or variable?

As per “4” above.

8. How much money do I need to buy a home?

Enough to complete the purchase. Typically, the banks require you to put in some contribution from your side towards the purchase.

9. How long does it take to get a Mortgage?

At Kiwi Mortgages, we normally get you an answer within a week but can arrange the loan even more urgently when the situation so demands, like the urgent auctions etc.

10. How much can I borrow?

You would require to borrow the purchase price of the house minus the deposit from your side but whether or not the banks will approve your lending depends upon your income. Importantly enough, it also depends a great deal on how the application is presented to the lender, which is where experienced broker such as Kiwi Mortgages can be of immense help.

First Home Buyer

1. Is there any Mortgages available for a First Time Home Buyer? (How much can I afford to borrow?)

The banks in NZ offer home loans at more lenient terms to first home buyers, so far as borrowers’ contribution is concerned. At Kiwi Mortgages, we can advise how much you can borrow with different banks in the initial meeting and can take you to the bank which will likely offer the most lending and most favourable terms

2. How much do I need for a deposit?

Normally, the banks require minimum of 20% deposit, but we can arrange loans at even 5-10% deposit if you are purchasing the house to live in there. A minimum of 30% deposit for an investment property. Normally a deposit of 35% will be required as a minimum for commercial properties but it can vary depending on the particular situation. Talk to us

3. Can I access the First Home Owners Grant?

You can be eligible for the home start grant as per below:

a- $1,000 for each completed year of kiwi saver membership, subject to a maximum of $5,000, if you are purchasing an old existing home

b- $2,000 for each completed year of kiwi saver membership, subject to a maximum of $10,000, if you are purchasing a brand-new home

c- And provided you meet the following conditions:

(i) – You have been contributing to kiwi saver for a minimum of three years

(ii) – You are purchasing the house for living in there and not for renting out

(iii) – Individual income no more than $85k p.a. and household income no more than $130k

(iv) – The maximum purchase price should not exceed $600k for old house and $650k for brand new house if purchasing in Auckland. There are limits for other parts of the country – talk to us for more information.

Refinance Mortgage

1. How much money can I save by refinancing?

Depending on each individual situation, our customers have been able to save thousands of dollars by restructuring or refinancing through us.

2. How much money can I save by consolidating my debts?

Typically, the loans not secured by your house are at a very high interest rate, sometimes as high as 20% or more. The banks are offering around 3.55% p.a. these days (This rate is at 7th Sep 2019 and interest rates offerings change all the time) and with a non-mortgage debt of say $50k at an average interest rate of say 15% p.a., you could potentially save about $5,000 to $6,000.

The post Common Mortgage Frequently Asked Questions (FAQ) Answered | KiwiMortgages appeared first on Kiwi Mortgages.

The rates are lower, this is probably the first reason our clients decide to refinance mortgage because it results in lower monthly payments. Generally, if rates drop 1% or more – it’s a good time to refinance.

You need extra money, need to pay debt or a high interest credit card? Because refinancing results in lower payments, the money you save can be used to repay your debt faster.

You want to reduce the term of your loan. Many of our client refinance to save money over the life of their loan. For example, if you currently have a 30-year loan and you refinance keeping the same payment you will pay off your loan quicker.

You want to convert your floating loan to a fixed loan. If the rates are lower than they were when you got your loan, switching to a fixed rate mortgage can offer more security and stability as well as save you money!

You want to consolidate debts such as second mortgages, personal loans and credit cards can often be consolidated when you refinance. Plus, consolidating your debt can result in savings.

Fortunately, rates are low today. If you’ve been thinking about refinancing your mortgage, give us a call today. We will work with you to find a great rate so you can have more money in your pocket this year!

The post Why you should Refinance your Mortgage or Home Loan appeared first on Kiwi Mortgages.

Whether you are buying your first home, moving up the property ladder, or making a property investment, we search the market for you, looking at options from most of the bank and non-bank institutions, then you can compare what is available to ensure you get the best deal.

Home Loans

Get the right advice and a range of options for the loan structure that best suits your cash-flow and saves you interest cost and thus helps you to repay your loan faster.

First Home Buyer Auckland

Buying your first home is an exciting and potentially overwhelming experience. Let us put you on the right financial footing from day one, guide you through the whole property buying process and get you the best deal.

Property Investment

Making successful property investments involves putting the right financing in place to cover the purchase. We’ll find a property investment loan that meets your needs.

Land & Construction Loans / Development Loans

Would you like to purchase land for development? Do you already own land and need a loan to fund construction? We’ll find the right loan for your needs.

Commercial Loans

Do you need a loan to fund expansion plans, for investment, for working capital, or for any other commercial purpose? We’ll explain the options and will find the best available deals.

Bridging Loans

Have you found your dream home but haven’t been able to sell your existing home yet? We’ll find you the ideal bridging loan so you can buy the new home you want.

Re-fixes / Rollovers

Do you have an existing loan that you want to rollover? We will analyse your options with a range of different lenders to get you the best rollover financing deal.

Self-Employed

One of our areas of speciality is finding and arranging mortgages for self-employed people. Whatever business you run, there are mortgage options available. Let us help you find the right one.

Personal Loans / Vehicle Loans

We can help whether you need a personal loan to purchase a car, for home renovations, or for a range of other purposes. We’ll get you the best deal as we work with most of the main lenders.

Low Deposit Home Loans in Auckland

To buying a home, the largest problem is the deposit. We understand how difficult it can be to save the 20% deposit, that the banks are asking for. Kiwi Mortgages help with low deposit home loans.

Our solutions will always be tailored to your situation, to book an appointment with one of our advisors, please call today on Toll Free 0508 33 22 11

The post Mortgage Structure – Types of Loan available in Auckland appeared first on Kiwi Mortgages.

That deposit could be as low as five or 10 percent of the purchase value of the house. This is considerably lower than the 20 percent deposit required for most home loans currently on the market. Give us a call today to find out more.

Benefits of Our Low Deposit Home Loans

• Ideal for first-time buyers who don’t have equity in an existing property
• Let’s you buy a house quicker than you otherwise would
• Range of options available, depending on your circumstances
• Expert advice from our friendly team

How We Will Help You

When you speak to a member of our team, we will get an understanding of your personal circumstances. You will then get advice on the options that best suit your needs.

Once you’ve made your decision, we then handle the full application process with the lender, keeping you informed every step of the way.

To discuss the low deposit home loans that are available, or to book an appointment with one of our advisors, please call today on Toll Free 0508 33 22 11

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