mortgage advice FAQ’s

Q.How long does it take to arrange a mortgage or pre-approval?

A. In most cases you should allow 3-4 working days. Bank turnaround times can be slower when the property market is extra busy.

Q. Should I have more than one pre-approval?

A. One pre-approval is all you need to have the confidence to continue with your plans. However, if you are unsure, for example, whether you may buy an apartment or a home, as some banks are keener on certain types of property than others, having two approvals provides you with more options.

Q. When do you negotiate interest rates and other benefits with the banks?

A. Banks sharpen their pencils best and negotiate much more keenly once they know there is a confirmed house purchase in place i.e. your offer has been accepted. Plus because interest rates are constantly changing banks are unable to lock in fixed interest rates until you know the exact date when the money is needed.

Q. Which banks do you deal with?

A. We work with most of the major lenders as well as a number of non-bank lenders. These include: BNZ, ASB, Westpac, ANZ, SBS, Sovereign… to name just a few.

Q. What is the minimum deposit I need?

A. A minimum deposit of 10% is needed. This money must generally be personally saved and cannot be gifted or borrowed from another source. However, if you have equity in another property you may be able to buy a property with no deposit.

Q. How do you get paid?

A. When you draw down a new mortgage or take out insurance cover we receive a payment from the loan or insurance provider.  This payment is generally a one-off amount but may include a small ongoing retention component. In the event that you may require us to act on your behalf where we do not receive a payment from the bank or agreed provider we may charge for the work to be completed.  Any such charge would be agreed in advance and authorised by you in writing.

Q. What conditions are normally found in sale and purchase agreements?

A. The more conditions the less attractive your offer will appear to someone wanting a quick, uncomplicated sale.  But given it is most likely the biggest purchase you will ever make, you shouldn’t in anyway cut corners and expose yourself to unnecessary risk. Your lawyer is the best qualified to advise you, however some common conditions include:

  • Subject to finance – 5 to 10 working days
  • Subject to building inspection – 5 working days
  • Subject to LIM report – 10 working days
  • Subject to valuation report – 5 working days
  • Subject to title search – 2 working days

 Q. Will a condition of the mortgage approval be that we must transfer all banking?

A. Some banks require incomes to be direct credited, especially if you have a revolving credit facility. But as with most terms this can be negotiated. Banks do, however require at least one bank account with them as no bank will deduct mortgage payments from a competitor bank.

still have a question?

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