Kiwisaver/Mortgage and Insurance

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nzkiwiman

2585 posts

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#1768254 21-Apr-2017 08:21

The mortgage broker seemed to think everything would work - with my savings and kiwisaver, I have a 15% deposit on a $250k house (which thankfully is still obtainable here in Dunedin), meaning roughly a $215k mortgage.

Now the wait to see if any bank would be prepared to help.

A question for those who have been through this
- can you "sit" on a confirmation of mortgage approval until it is actually needed, or if the broker finds a deal do you have to take the money?

gcorgnet

1078 posts

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#1768273 21-Apr-2017 09:01

nzkiwiman:

A question for those who have been through this
- can you "sit" on a confirmation of mortgage approval until it is actually needed, or if the broker finds a deal do you have to take the money?

The bank usually gives you a pre-approval (on certain conditions) up to a given sum, valid for a given period of time (say 3 months)

So you don't have to take the money. In fact you'll never see the money, it'll go straight to the seller on settlement day

littleheaven

2130 posts

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#1768909 22-Apr-2017 14:25

Have you thought of taking in a flatmate to help with the bills? Even if you can afford to go it alone, putting all of their contribution (less costs for the additional power/water) straight into your mortgage could save you years and thousands of extra dollars in interest. Even if you're on a fixed rate, you're allowed to increase your regular payments by a certain amount (even $100 a month makes a big difference) and all of that goes straight off the principal amount owing on the loan. Also, if you build or buy brand new I think you are eligible for more from the KiwiSaver/HomeGrant scheme. Good luck!

Geek girl. Freelance copywriter and editor at Unmistakable.co.nz.

nzkiwiman

2585 posts

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#1769614 24-Apr-2017 11:25

littleheaven:

Have you thought of taking in a flatmate to help with the bills? Even if you can afford to go it alone, putting all of their contribution (less costs for the additional power/water) straight into your mortgage could save you years and thousands of extra dollars in interest. Even if you're on a fixed rate, you're allowed to increase your regular payments by a certain amount (even $100 a month makes a big difference) and all of that goes straight off the principal amount owing on the loan. Also, if you build or buy brand new I think you are eligible for more from the KiwiSaver/HomeGrant scheme. Good luck!

Having a flatmate is almost a requirement for me to be able to afford anything

However I need to budget everything at the beginning with only myself covering all the costs because finding a flatmate is not guaranteed, and if found, not guaranteed they would hang around

littleheaven

2130 posts

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#1769617 24-Apr-2017 11:31

nzkiwiman:

Having a flatmate is almost a requirement for me to be able to afford anything

However I need to budget everything at the beginning with only myself covering all the costs because finding a flatmate is not guaranteed, and if found, not guaranteed they would hang around

Very wise. I'm sure you'll do fine because you've obviously considered all the aspects very carefully.

Geek girl. Freelance copywriter and editor at Unmistakable.co.nz.

nzkiwiman

2585 posts

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#1771442 27-Apr-2017 17:20

How long should one wait for the mortgage broker to get back to you?

I saw them a week ago and they mentioned an initial contact the next day (Friday 21/4) with more the week after (24/4-28/4)

So far no contact ...

ShiroHagen

59 posts

Master Geek

#1771483 27-Apr-2017 18:51

I can only guess the delay might be due to ANZAC and/or school holidays. I've had loan managers go on leave without informing me in the midst of mortgage negotiations which I thought was pretty unprofessional.

A good broker will be negotiating on your behalf with all of the various pricing teams from the banks, and presenting their offers for you to consider.

They don't get paid unless they stitch up a deal so it's in their interest to get you an acceptable offer.

Have you advised the broker of any timeframes? It's possible they are dealing with other customers who have an auction / sale date to work to so are giving them higher priority?

Nevertheless if they said they were going to get back to you Fri then they should have done so with news or none. IMO

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bmt

574 posts

Ultimate Geek

#1772184 28-Apr-2017 22:37

I've been reading so many anecdotes of poor service from mortgage brokers lately. My own experience is the same, I'm buying off the plans and due for settlement in March next year (so won't be needing the mortgage until then), but I have been in contact with a broker and had many long waits for a response and my last contact received no response.

There are so many mortgage brokers out there, you would think they'd want to differentiate by offering great service. The broker I was dealing with did a lot of legwork and helped me out a lot but to be honest I'm probably going to find someone else come mortgage time.

mattwnz

20147 posts

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#1772209 29-Apr-2017 00:08

I have found a lot of businesses at the moment aren't bothering to reply to email enquiries, especially in the construction and housing field. I think it is due to them having so much business at the moment.

Batman

Mad Scientist
29761 posts

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#1772212 29-Apr-2017 00:23

insufficient business (supply > demand), service goes up

too much business (demand > supply), service goes down

pctek

807 posts

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#1772939 30-Apr-2017 17:19

BIL bought a house with his Kiwisaver.

He was about 48, 49? at the time.

After years of renting he thought he'd give it a go.

He had no other deposit at all.

He was with Kiwibank. Who weren't actually that nice about it really.

He finally found one, needed some work, but nothing structural or too major. Just within the budget.

Kiwibank fussed about wiring reports and the like. But he got it.

He's 61 this year. The house (in a rubbish town long considered undesirable) is now worth heaps more than he paid, it's in between Hamilton and Auckland is why.

He wants to sell on retiring and wander off in a campervan.

Whether that's a good idea or not is beside the point really, he'll be able to. Mortgage is due to disappear before then with just his steady rate of payments.

Never a bad idea to buy one, long term they increase in value, even taking into account fluctuations in the cycle. So long as it isn't in the middle of nowhere it beats renting for sure.

It's always a strain at first, but sit back and watch. In 5 years, 10 years, 20 years....compare rents with what you are then paying.