The Loan Process
We make it simple
How Much Does it Cost to you ?
For you, we are often free to use. Generally, we get paid by the bank.
- Banks tend to save money when using mortgage brokers since they don’t have to service the client as much
- The commission isn’t added to your loan or interest rate, so it is genuinely paid by the bank
- If the broker works hard to find you the right deal, making sure you get the best service and keeping you informed at every step of the process.
- Once you have managed to move into your own home, the best way to thank your advisor is to send them referrals and provide honest feedback to improve.
- Although you may not be paying them directly, they are working for you and on your behalf. So you should expect to receive a professional service.
- On the odd occasion, we will charge you a fee, and we will inform you upfront before you proceed to avoid any dispute in the future.
What’s stopping you from buying your first home?
We're guessing it’s saving for a deposit and affordability.
Is this pushing the New Zealand dream of owning your own home further and further away?
How Does The Process Work?
1Initial Conversation
2Get Your Docs Together
3Broker Approaches The Banks
4Get An Answer Back From The Bank
Initial Conversation
Usually, we will conduct an initial assessment of you via a Zoom meeting, team meetings or a telephone call on first contact.
It’s a bit like a meet and greet, except you will be talking about yourself, your family, your financial goals, the property that you considering buying, etc.
In some instances, we will be able to give you a “ballpark” on what the bank is likely to lend you given your current situation. If anything this is just to give you an idea from the outset.
Based on our conversation and your financial goals, we will request you send some documents to proceed further.
Get Your Documents Together
The next step is to hand over all documents that the bank requires.
This can be laborious, most of the time this will be done online.
In most cases, the lender’s requirement will be
Application form completed this will be done via the GEM portal (we will be sending you the link)
- Latest 4 pay Slips for all the Mortgage applicants
- Latest Four months ‘worth of bank statements all Banks accounts
- Latest Six months’ worth of credit card statements (for each credit card)
- Latest 6 months’ worth of store card statements
- Latest 6 months’ worth of personal or car Loan statements
- Copy of your passport
- If Non-Resident then a copy of Residency
All above documents need to be in PDF format only, NOT excel or any other format
Once I received all the above documents and we are ready to proceed further, we will email you a few forms to sign and confirm all details are correct for us to proceed further.
Forms you will receive from us :
- Authority and declaration form – (I will be sending you this once I received all documents) you need to sign and dated and send it back to us to proceed further
- GEM Client profile form
Approaching the banks
Armed with all of this information, we can now run your numbers properly through bank servicing spreadsheets to decide where you’re most likely to get lending approved. This is entirely situation-dependent, your current banking relationship, each bank will have its own credit policies.
There are so many factors that play a role in making that decision, however, we will keep you informed throughout the process, and before approaching we will provide you an update.
Getting An Answer From The Lender
- The Mortgage Lounge will be your go-between and advocate between you and the bank. If there are any additional questions or pushback, we will push your case on your behalf. ( Again we will keep you informed throughout this process)
- The Lender will come back with the final answer, called an approval or Pre Approval.
- If you have already signed the sales and purchase agreement for a specific property, the bank will give you approval (based on your situation they might impose certain conditions). But if you don’t already have a property they’ll give you a pre-approval subject to various conditions.
Make recommendations based on your overall financial goals
What we will discuss in this is pre-approval:
- The amount of loan approved
- Any specific conditions that apply to your loan
- Any fees that you would have to pay
- Different types of interest rates, fixed or variable, etc.
- We will make recommendations based on our discussions and your financial goals.
Banking Jargon Demystified
LVR: Loan to value ratio, which means loan amount divided by the value of the property
(Lenders will consider lower value such as – Purchase price, registered valuation, or Evaluation whichever is lower)
Deposit/ Equity: This is basically your contribution towards your house purchase OR in the case of the second property equity from your existing property. In most cases, LVR is below 80%
What you should Avoid :
Account Conduct
Self Employed:
If you're a fixed-term contractor, have your own business.
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