Getting A Home Loan

Home loans are supplied by home loan lenders such as banks, building societies, co-operatives, the Public Trust, and credit unions. The amount you can borrow depends on a number of things, including how much you can afford to repay. Your lender will let you know how much money you can borrow. Lenders have different types of home loans and many will include extras such as lower account fees and low application fees, so it pays to shop around. Using a mortgage advisor is good for this as they do the shopping around for you and, best of all, a mortgage advisor offers a free service. Alternatively, approach your own bank or lender for home loan enquiries as they already have your banking history. Mortgage advisors act as a go-between for you and lenders and will send your loan application to several lenders to see who will offer you the best deal. Ask your bank or lender or mortgage advisor about their application process and criteria, including what documents they need to see before they can assess your eligibility for a home loan.

How Housing New Zealand may be able to help

Housing New Zealand offers a number of home ownership initiatives designed to help first-home buyers into their first home. You may be eligible for a low deposit loan through the Welcome Home Loan scheme through participating lenders, or a KiwiSaver HomeStart grant for first-home buyers. If you are a Housing New Zealand tenant, you may be able to buy your current house, and if you have permission to build on multiple-owned Māori land, a Kāinga Whenua loan could get you there. It is part of Housing New Zealand’s role to help people make housing choices that work best for them. Call them on 0508 935 266. Or visit www.hnzc.co.nz.

About the Welcome Home Loan

The Welcome Home Loan, supported by Housing New Zealand, makes it easier for you to get into your first home. A Welcome Home Loan is offered by lenders, underwritten by Housing New Zealand and designed for those firsthome buyers who can afford to make regular repayments on a home loan, but have trouble saving for a large deposit. Housing New Zealand does not issue the loan; this is done through normal lenders such as selected banks and credit unions. Housing New Zealand insures the loan with the lender, should the borrower have difficulty repaying the loan. You will still need to meet the lender’s specific lending criteria. With a Welcome Home Loan, you need to have a deposit that is equal to or in excess of 10 percent of the purchase price. There are three regional house price caps, ranging from $350,000 to $550,000. The deposit can be gifted from a relative. Three or more borrowers can also team up to purchase a home, making it easier for extended families to own a home. To be eligible for a Welcome Home Loan, you can have a household yearly income up to $80,000 (before tax) for a single borrower. If there are two or more borrowers, you can have a combined household income up to $120,000 (before tax).

The other criteria are that you:

• are buying your first home

• are buying the house to live in

• don’t own another house, and

• can meet the lender’s credit criteria.

I highly recommend Jenny Cheevers ..just mention my name and she will help you with all your mortgage options. She comes highly recommended and has done outstanding work for my clients.

For a free no obligation chat on any real estate matters feel free to call or email me anytime. Vinay Kumar 0275643112 or vinay.kumar@harcourts.co.nz