Property and finance blog

How can you get a pre-approved home loan before you leave the UK?

Having a home loan approved before you buy a house is particularly helpful if you are not yet living in New Zealand.  It gives you the ability to find the right house at the right price with the knowledge of how much you can spend.

New Zealand Housing Market

When you emigrate to New Zealand you are making the decision to come toa country that has one of the highest rates of property ownership in the world– 60% of all New Zealanders own their own home and as a Brit you will realise that you can own the type of home that could have been way beyond your reach in the UK – sea views, architecturally designed, a few acres of land…this type of dream home will no longer be unaffordable but very
attainable.

Mortgages available in New Zealand

 

“How do you find out about what you don’t know?”  The answer is very straightforward – contact a professional mortgage broker.

 

Almost all mortgages in New Zealand are the repayment type of mortgage and this means that with each payment made, an increasing percentage is principal.  These mortgages are typically taken out for a 25 or even 30 year period.  These loans can be taken out with a ‘floating’ rate term or a ‘fixed’ rate term.  A fixed rate mortgage is where you select a term and a rate, your interest rate is then locked in for the term (generally up to five years).  This is a good idea if interest rates are likely to rise, whereas a floating rate is better if rates are likely to fall.  Most lenders can offer a mix of fixed and floating.  Your mortgage broker can recommend the right ‘mix’ for your circumstances.

 

When you are applying for a mortgage the lender will look at ‘loan to value ratio’ (how much of the property’s value are you borrowing), your income, existing debt, residency status and your overall financial situation. Different lenders have different criteria and formulas that they use, some are happy to lend to self employed people, others not so keen, some are happy to lend to recent immigrants, some prefer you to have been in New Zealand for a while. Once again it is essential that you find the lender that suits you and your circumstances.

 

You would never know if you had the right mortgage for you if you went directly to the bank.  It is so important that your application for a mortgage goes to the correct lender, the first time, at the best terms available to you. It is the job of your mortgage broker to negotiate with the right lender and satisfy any conditions they have on your behalf

 

It is the mortgage broker’s role to do all the “donkey work” in arranging the best mortgage option for you, finding the lowest rates and the lowest fees. They take the stress out of securing mortgage finance in a new country by making the loan application process and the settlement a smooth, hassle free experience.

 

For added peace of mind, when you deal with a reputable Mortgage Broker you will be dealing with a member of the New Zealand Mortgage Brokers Association (NZMBA), which means that their organisation have satisfied the educational, training, insurance, reference and other requirements of this professional organisation.