Mortgage Brokers for First Home Buyers

Posted by John Shaft on
Mortgage Brokers for First Home Buyers

Mortgage brokers are a vital part of the housing industry in New Zealand. They write about 40% of all residential and commercial mortgages in New Zealand, and provide an essential consultancy, advisory and assistance role for all classes of borrowers.

Tina Lim is a professional mortgage broker

The most likely group to use a mortgage broker in 2017 is the first home buyer, as banks have tightened up their mortgage lending criteria in the last two or three years making it more difficult for first time borrowers to qualify for the mortgage they want and to negotiate all the paperwork.

Government restrictions and the reserve bank have forced Banks to only allow mortgages for first home buyers with a 20% deposit, unless the buyer meets certain restrictions regarding income and their work and savings history. All the banks spell out their lending criteria clearly on their web pages, but the process can appear confusing and intimidating to the first home buyer who has never been through the mortgage process before.

The good news for these buyers is that mortgage brokers Christchurch are free, and so this makes the mortgage broker an attractive pathway for the first home buyer. The even better news is that mortgage brokers are paid by commission by the banks, generally 0.65% the loan value, and hence the broker is very motivated to succeed for their customer. This has in fact always been the case, and up to 2011 there were many brokers in the industry who were happy to bend the rules and tell white lies about their clients in order to win that precious mortgage. This lead to a lot of problems that were very clearly exposed during the financial crisis of 2008/2009, including a large number of borrowers who should never have been given a mortgage of that size. The cost to the banks and personal damage to borrowers during that period was enormous, and this led directly to new and tighter regulations of the sector.

The result is that in 2017 first home buyers can trust their mortgage brokers Canterbury to provide them with expert advice, to not tell any untruths on their behalf, to not saddle them up with a mortgage they cannot afford, and to find and action the very best deal in the market. The mortgage broker clients can feel safe knowing that they have a recognised complaints procedure if there are any problems.

Using A Mortgage Broker To Buy A Car

Posted by John Shaft on
Using A Mortgage Broker To Buy A Car

Many homeowners discover to their Delight that once they have lived in their house for a few years then the property vale will have increased substantially plus they will have paid off a chunk of their mortgage, so its important to choose your broker carefully. What this means is they discover that they have significant equity and their property that any bank will be happily to loan against.

It’s a natural increase in the home owners equity there’s also a matched by the homeowner improving their employment situation and earning more money, in the homeowner who likes to show off will feel like they are in a position to buy a new car and to make the payments on the car. That way you’l have the best mortgage brokers Upper Hutt has ever seen.

For many reasons a brand new vehicle for normal home owner does not make financial sense, because the car loses probably 20% to 30% of its value as soon as it is driven off the car yard, and it’s value continues to degrade after that. By contrast almost all property for which a mortgage is obtained then increases in value over time so that the owners equity is always escalating.

However this logic does not seem too concerned a large number of homeowners in New Zealand or around the world, and they are quite happy to add to their home mortgage in order to purchase a new vehicle. This at least makes more financial sense then using a finance company for purchasing the vehicle, as the finance company interest rates will be a lot higher and the terms will be a lot more onerous. On the other hand if the homeowner is unable to make payments on the loan from the bank then they could lose their home and their car, so they need to go into the process with their eyes wide open.

A mortgage broker Lower Hutt can seriously reduce the risk of any such transaction by helping the homeowner to fully understand their financial situation and obligations, and also negotiating for the increase mortgage on their behalf. The mortgage broker may even change the homeowners Bank and refinance the property, as this can often be the most economic solution given that banks are always on the lookout for new business. For all that it can be very uncomfortable for many homeowners to contemplate adding a depreciating vehicle to their list of assets for which they are paying a mortgage, and this type of purchase and financing is definitely not for everybody.

An interesting aspect of the new car market is that almost every new car on the road is either a company vehicle or has been purchased by an individual who needs to raise a large loan, as there are very few individuals that can afford to pay cash for a brand new vehicle. There is a significant sector of the population who have more economic sense and would never buy a new car when I 3 year old second hand car can do the same job for a fraction of the cost, and this group of people can look at those driving new cars and feel somewhat smug that their financial acumen is substantially superior to the new car owners’.

Working With A Mortgage Broker

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When choosing a mortgage broker you can generally be quite comfortable that the broker is competent and effective in today’s market. To put it simply, they would not be in business if that  we’re not the case. It is very similar situation to the cafe market in New Zealand,  where it is virtually impossible to find a bad cup of coffee nowadays.

Consequently your main criteria for working with a mortgage broker is that they can drop everything and help you immediately, and you should find that most mortgage brokers can work with you no matter what town or city you are in. The Internet is a very effective information and communication medium.

A smart move before you first approach your chosen mortgage broker it is to do your numbers first to find out how much you need or would like to borrow, how much real cash you can lay your hands on for a deposit, how much you can afford to pay today and mortgage repayments, and how this ability to pay will change over time. There are good websites where you can calculate mortgage repayment rates and such like, and once and with his information you can then begin a sensible discussion with the mortgage broker.

Yes you are an investor then you should also research your ongoing tax obligations, as your mortgage broker may be able to suggest ways to structure the loan so as to minimise your final text bill.

Once you start discussions with your mortgage broker you should be prepared for challenge and possibly disappointment if they reality means that you will be very unlikely to get a mortgage of the size you’re wanting. Some mortgage brokers in Southland may have knowledge of available deals with certain banks,  but these may only be available for a short time and it may be Hit Or Miss whether you strike it lucky.

A good mortgage broker will not stop at the point where they cannot provide a mortgage for you of the size you want, but instead they will suggest a plan B or Plan C for example,  that may involve finding additional cash for the deposit to get over the banks hurdle, or may involve increasing your income temporarily, for example by taking a job if you are self employed.

Mortgage brokers in Otago are generally the experts in the field, and you should be confident that if there’s a solution they will find it, but similarly if they cannot find a solution then it is unlikely that others will.

Drainage in the Valley

Posted by John Shaft on

This random place is an alluvial Valley floor surrounded on 2 sides buy steep Hill suburbs. The bulk of the city’s residents and virtually all commercial businesses  nope and operate on the valley floor. The city’s sewerage is piped out along the eastern Wellington Harbour Shore, and  deposited a kilometre or so off the  South Coast is filtered but raw sewage.

The city’s drainage system is complicated by the flatness of the terrain and by the risk of flooding from the river and its’ tributaries feeding in from the western and  Eastern Hills. Vital part of the city drainage network is the very powerful pumping stations located at key points with plumbers Waikanae, and it is obviously very important that these pumping stations able to operate reliably at any time and for any duration.

Another complication for the city is that it is only slightly above sea level, and tidal saltwater  flows back up the stormwater drainage system at each high tide and during severe storms and low pressure systems. This not only causes flooding and a risk of sewage contamination through backflow into the sewage system, but the tide also transports sand back into the stormwater system which has to be regularly cleared to prevent any blockages. The Council as built a handful of very substantial sand traps and steel shutter systems that prevent this backflow and trapped the sand on the Seaward side of the steel shutters.  The design of this is intended to automatically flush the sand back out to sea during heavy rain.

This random place’s sewerage system would be severely tested during a major earthquake which would likely create some uplift in the Western Valley. Not only would this damage sewerage lines, but it will also tilt the valley in such a way that the  city’s sewerage would tend to flow into the Eastern Valley. Most of the sewerage network would need to be completely relaid in such an event.

An  unpleasant outcome of the Valley sewerage network is the obvious smell of sewage on the remote South Coast, and the numerous signs warning visitors to not take fish or shellfish from the area.

Employ A Registered Contractor

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If you want to employ a contractor a New Zealand to work on your residential or commercial property,  you will almost certainly need to employ a registered contractor. This is for safety and insurance reasons and also for the long-term warranty of the finished job.

If you want to employ a roofing contractor for example, then you will need to choose a licensed building practitioner or LBP if you are wanting to build a new roof.  Although this is not legally required for roof repairs it is a very sensible approach,  for long-term warranty and insurance reasons and also for work quality reasons.  A licensed building practitioner has to be re licence every year which requires attending training courses and additional study.

In any case your contractor should also be a registered plumbing contractor with the appropriate plumbing qualifications or NZQA  roofing national certificates. There are seven such certificates.

You may be tempted to choose a non registered or non qualified plumber because their price might be a lot better than other plumbing contractors. This approach is probably ok as long as you are very closely supervising the job and as long as you fully understand what the job entails and what a good finished job should look like. Get your plumber Wellington quickly before someone else does.

You might use a unregistered or non qualified roofer four situations where you need someone a job to climb over the roof and do small jobs which might be not comfortable for yourself. You also might use an unqualified roofer as an assistant, but you will  need to be very careful that you have fully explained all the safety requirements when waking up on the roof. Remember that anything that happens on the roof if you are supervising the job is your responsibility entirely,  and you will be liable for any accidents that happened on site.