So how exactly do you go about buying your first home?
It seems like an exciting idea but you’ve got a few questions. In fact, it’s all starting to feel a little stressful. Cue the friendly mortgage experts at MortgageMe. We’ve got answers to your questions, even the ones you haven’t thought of yet. We’ll take you through the details like how much deposit you need, which properties you can afford and how much your loan repayments will be. We‘ll give you a heads up on pitfalls to avoid (like forgetting to budget for legal costs) and some clever tricks of the trade, like using KiwiSaver to help with your deposit.
How much deposit do I need?
The more deposit you have the easier it is to get the loan, you can get approved with as little as 5% deposit. If you don’t have any deposit you may still be able to get approved if you have a guarantor. Using a guarantor is quite complex so it’s best to pop in to see us so we can chat through the options.
How much can we borrow?
Every bank has a different formula to work out what your maximum borrowing capacity is, you might find that some banks will lend your more money than you want to, or should borrow. It’s important to understand the ins and outs of the debt you’re getting into, the risks you face and how to minimise those risks. At MortgageMe this is all part of what we do for you… all for free.
How much should I borrow?
The most important thing is to buy a house you are happy with. Selling a home is expensive, lawyers fees, real estate costs and advertising costs all make choosing the wrong house a very expensive exercise.
The more you borrow the more you pay in interest and the longer it takes to repay the loan, around 15 – 20 years is a good length of time to repay your loan without paying too much in interest. Speaking of interest be aware interest rates will fluctuate during the term of your loan, make sure you handle the repayments when interest rates rise.
How do I save money?
There are lots of ways you can save money on your home loan, a lower interest rate is one way. The real savings come when you look at paying a few extra dollars off you loan each week.
How do I get the best deal?
If you dealing directly with the bank it is always hard to know if the deal you are being offered is the best deal in the market. Most people arrange a home loan only a handful of times in their lives. At MortgageMe we are arranging hundreds of customer loans a year, we know what the best deals look like and we know how to handle the banks.
I have been declined for a loan, what do I do?
Don’t panic, just because one bank has declined you does not mean they all will.
Every bank has different lending policies, at MortgageMe we know what they are and can quickly move your application to the bank that gives you the greatest chance of being approved.
We are also experts at thinking outside the square, something that a lot of banks don’t do so well.