Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


View this topic in a long page with up to 500 replies per page Create new topic
1 | 2 
2071 posts

Uber Geek
+1 received by user: 227

Subscriber

  Reply # 1395811 28-Sep-2015 14:47
Send private message

Make sure that before you agree to any loan you find out the cost of paying it off early.  The banks are not too bad but the finance companies traditionally have had some quite large fees.

1 post

Wannabe Geek


  Reply # 1405631 14-Oct-2015 12:31
Send private message

Hi, I've just been through the process of applying for a Welcome Home Loan over the last month.

 

1. The requirement of less than $10K personal debt isn't a Housing New Zealand requirement, it is a requirement that the bank is imposing. I spoke with Westpac who said it had to be less than $10K and they wouldn't even look at my application. On further questioning, the lady said that she could if i really wanted to but that she could pretty much guarantee that it would come back from Housing New Zealand with a recommendation to get my personal debt down to $10K. I suspect, if I pushed for it, she would have sent it to the Westpac lending team and it wouldn't have even reached Housing NZ.
Kiwibank on the other hand advised that they look at the ability to service debt-repayments as opposed to an actual dollar-value.

 

2. Housing New Zealand isn't the guarantor, their role is solely to approve the Bank's intention to lend 90 percent of the property's value.

 

3. Housing New Zealand as well as the bank will need a registered valuation. This cost me around $550. If the registered value comes in at even a small amount lower than what you have offered to pay for it, lending on the property will not be approved. I personally saw this as a good requirement as I wouldn't want to pay more than a house was worth.

 

4. Once finance has been approved (not-preapproved), Housing NZ has nothing to do with the property. You can get flatmates in if you like, however the bank will not take into account payments from boarders when they are looking at your borrowing ability.

 

It was quite an easy process overall..
- Get pre-approval for first home grant from Housing NZ (3 working days)
- Get letter stating amount of funds you can withdraw from your Kiwisaver provider (same day)
- Applied with bank
- Pre-approval letter received (2 days after applying)

 

Please let me know if you need any more information around my experience, happy to help!

 
 
 
 


45 posts

Geek
+1 received by user: 16


  Reply # 1405728 14-Oct-2015 15:03
Send private message

pereira: Hi, I've just been through the process of applying for a Welcome Home Loan over the last month. 1. The requirement of less than $10K personal debt isn't a Housing New Zealand requirement, it is a requirement that the bank is imposing. I spoke with Westpac who said it had to be less than $10K and they wouldn't even look at my application. On further questioning, the lady said that she could if i really wanted to but that she could pretty much guarantee that it would come back from Housing New Zealand with a recommendation to get my personal debt down to $10K. I suspect, if I pushed for it, she would have sent it to the Westpac lending team and it wouldn't have even reached Housing NZ.
Kiwibank on the other hand advised that they look at the ability to service debt-repayments as opposed to an actual dollar-value. 2. Housing New Zealand isn't the guarantor, their role is solely to approve the Bank's intention to lend 90 percent of the property's value. 3. Housing New Zealand as well as the bank will need a registered valuation. This cost me around $550. If the registered value comes in at even a small amount lower than what you have offered to pay for it, lending on the property will not be approved. I personally saw this as a good requirement as I wouldn't want to pay more than a house was worth. 4. Once finance has been approved (not-preapproved), Housing NZ has nothing to do with the property. You can get flatmates in if you like, however the bank will not take into account payments from boarders when they are looking at your borrowing ability. It was quite an easy process overall..
- Get pre-approval for first home grant from Housing NZ (3 working days)
- Get letter stating amount of funds you can withdraw from your Kiwisaver provider (same day)
- Applied with bank
- Pre-approval letter received (2 days after applying) Please let me know if you need any more information around my experience, happy to help!


That's interesting.  We got told by Westpac with our 5K personal loan no, and to try again when it was gone.

We went through a different mortgage broker for BNZ and they said yes on the condition we got rid of that loan.

So now we have to figure out the next steps, meeting with the lawyer and the mortgage broker this weekend to find out how and what I need to do because it is bloody daunting.



1219 posts

Uber Geek
+1 received by user: 56


  Reply # 1405905 14-Oct-2015 19:23
Send private message

pereira: Kiwibank on the other hand advised that they look at the ability to service debt-repayments as opposed to an actual dollar-value.


I wish this were true in my case, I earn 12 times the weekly mortgage repayments, but they (Kiwibank) declined my application, even with 20% deposit.


pereira: 3. Housing New Zealand as well as the bank will need a registered valuation. This cost me around $550.


In my enquiries, I've been told all banks require valuation for private sales; BNZ for example said 20% deposit with valuation or 50% deposit without one. Westpac and a few others have been ok without a valuation as long as it goes through agent and is close to GV.

pereira: 4. Once finance has been approved (not-preapproved), Housing NZ has nothing to do with the property. You can get flatmates in if you like..


Yes thats right, I was told you cannot sell a Welcome Home Loan house for 6 months after purchase, and it absolutely must be owner occupied. I guess for that to be true they must audit people?? I'd like to know how they go about this.

I'm struggling to get a mortgage still, its such a slow process (for me) and I often get given false hope only to be cut down - even been preapproved twice and told I can place offers only to have those banks change their mind once another lending manager reviews the documentation.

Mad Scientist
17741 posts

Uber Geek
+1 received by user: 2178

Trusted
Lifetime subscriber

  Reply # 1405918 14-Oct-2015 19:56
Send private message

have you used a broker?

1076 posts

Uber Geek
+1 received by user: 754

Subscriber

  Reply # 1405935 14-Oct-2015 20:13
One person supports this post
Send private message

OP: I do some volunteer debt counselling and also provide free legal advice at a community law centre, so I see quite a few people with difficulty getting loans. Whilst banks can be rather irrational, your situation (as you describe it) doesn't sound right. Have you asked some blunt questions about why you are getting declined? Do you have any previous credit issues?





1219 posts

Uber Geek
+1 received by user: 56


  Reply # 1405951 14-Oct-2015 20:57
Send private message

dejadeadnz: OP: I do some volunteer debt counselling and also provide free legal advice at a community law centre, so I see quite a few people with difficulty getting loans. Whilst banks can be rather irrational, your situation (as you describe it) doesn't sound right. Have you asked some blunt questions about why you are getting declined? Do you have any previous credit issues?
.

Never been a day late in a single payment, let alone miss one.

The issue mainly stems from stuff mentioned at start of this thread... that I'm buying a house in a different area to where I'm living/working, they say its "too far", but won't define at what point its too far away to buy a house. Other main excuse is that I've only been with same employer 12 months, non continuous. One bank declined as they said it would be too hard to conduct mortgagee sale in that area as they have no branches there, said would look at it if I could increase deposit to 30% to offset their additional "risk".





1219 posts

Uber Geek
+1 received by user: 56


  Reply # 1405952 14-Oct-2015 21:02
Send private message

joker97: have you used a broker?


Yes, currently using one but it is brutally slow going, has been ongoing process since the very beginning. Rather than being organised and asking for list of all possible information, I've been asked for it in bits and pieces, and this is taking forever as they then take each little bit in turn to bank/s I presume?

I'm about to enlist the services of local broker. Was just waiting to have total of 20% which is where I'm at this week.

Mad Scientist
17741 posts

Uber Geek
+1 received by user: 2178

Trusted
Lifetime subscriber

  Reply # 1405956 14-Oct-2015 21:05
Send private message

have you tried a bank (all the big banks) in the area you are buying from instead of the local branch where you live?



1219 posts

Uber Geek
+1 received by user: 56


  Reply # 1405972 14-Oct-2015 21:19
Send private message

joker97: have you tried a bank (all the big banks) in the area you are buying from instead of the local branch where you live?


No, not one. I guess, initially based on my income and saving history, that it would be a no brainer for a bank to give me a mortgage, I wasn't expecting such resistance.

I guess as I exhaust options, I increase the scope of who to approach for a mortgage - brokers, building societies, credit unions, whilst trying to minimise just burning back through my deposit on "exploratory costs". Like the other thread about house auctions and how one could blow serious money trying to buy a house but keep missing out and just progressively getting in weaker and weaker position.

So I have thought about this, wasn't sure if it would make much difference, so might be worth planning a trip to do this.

Mad Scientist
17741 posts

Uber Geek
+1 received by user: 2178

Trusted
Lifetime subscriber

  Reply # 1405977 14-Oct-2015 21:27
Send private message

just say "i am wanting to move there but want a house first"

1 | 2 
View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

New Zealand hits peak broadband data
Posted 18-Jan-2018 12:21


Amazon Echo devices coming to New Zealand early February 2018
Posted 18-Jan-2018 10:53


$3.74 million for new electric vehicles in New Zealand
Posted 17-Jan-2018 11:27


Nova 2i: Value, not excitement from Huawei
Posted 17-Jan-2018 09:02


Less news in Facebook News Feed revamp
Posted 15-Jan-2018 13:15


Australian Government contract awarded to Datacom Connect
Posted 11-Jan-2018 08:37


Why New Zealand needs a chief technology officer
Posted 6-Jan-2018 13:59


Amazon release Silk Browser and Firefox for Fire TV
Posted 21-Dec-2017 13:42


New Chief Technology Officer role created
Posted 19-Dec-2017 22:18


All I want for Christmas is a new EV
Posted 19-Dec-2017 19:54


How clever is this: AI will create 2.3 million jobs by 2020
Posted 19-Dec-2017 19:52


NOW to deploy SD-WAN to regional councils
Posted 19-Dec-2017 19:46


Mobile market competition issues ComCom should watch
Posted 18-Dec-2017 10:52


New Zealand government to create digital advisory group
Posted 16-Dec-2017 08:47


Australia datum changes means whole country moving 1.8 metres north-east
Posted 16-Dec-2017 08:39



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.