Home Loan Auckland
First time buyers
Auckland, New Zealand: Buying your first home is an incredibly exciting time. As one of the largest and most expensive purchases you are ever likely to make, it can often be a stressful time if you can't secure a home loan or need to be sure you're getting the best mortgage.
Before you start looking at potential homes, chat to LoanPlan about a pre-approved loan.
We have a high success rate and are committed to finding the best option for you. Even with access to over 35 lending institutions, our loan specialists have an intimate understanding of the mortgages available and will talk you through the options.
The result is a package tailored to suit your individual financial situation and long-term goals. With a pre-approved loan you will be in the best position possible when it comes to placing an offer on the home of your dreams, and be certain you can afford it.
If you don't have the deposit required to purchase the home you would like, but your parents want to help out, a 100 percent home loan could be the option for you. This type of loan is suitable if your parents are prepared to be a guarantor or raise funds against their own home.
Climbing the property ladder
If you are already on the property ladder and looking to move onto bigger and better things, LoanPlan can help you refinance your mortgage to get there.
Along the way Loan Plan help you make those tricky decisions, such as whether to stay with your current bank or refinance with a new lender. We can also assist you with advice on consolidating any short-term debt in order to reduce repayments.
If you are resident overseas but looking to purchase property in New Zealand, LoanPlan is happy to help.
If you would like to discuss a home loan with us, please complete the short enquiry form and one of our specialist LoanPlan consultants will contact you today. Alternatively call us on 0800 56 26 75 (0800 LOAN PLAN). Regardless of where you intend to buy your home, whether in Auckland, Hamilton or elsewhere in New Zealand, we can help.
Auckland mortgage? What you need to know about LVR’s
First, you might ask “What is an LVR?” and “How does it affect me?”
LVR stands for Loan-to-Value Ratio and they are nothing new. Banks have always calculated the LVR when assessing a loan application.
What is new are government restrictions put in place to limit the amount banks can lend to low deposit borrowers. The Reserve bank introduced a two-tier LVR system—one for owner/occupier loans and one for investment loans.
If you have a large deposit and you’re seeking to loan less than 80% of a property’s value, then you’re sweet—LVR restrictions do not apply to you. However, with Auckland’s high property prices, many lenders have less than 20 percent deposit and therefore need a larger, ‘high-LVR’ loan from the bank. Because of the Reserve bank restrictions, high-LVR loans can only make up 15% of the bank’s total lending.
Reserve bank restrictions for investor loans are even stricter. To avoid falling into the high-LVR category, you need a deposit of 35% or greater. High-LVR loans in the investment property category can only make up 5% of the bank’s total lending.
As you can see, the limits applied by the Reserve Bank create strong competition for that 15% allocated to high-LVR owner/occupier loans and the 5% to investor loans. But you are exempt from these restrictions if you are:
- Building a new residence
- Renovating a property to fix building issues or make it compliant
- Buying your first home through the Housing NZ Welcome Home loan scheme
- Refinancing or seeking a bridging loan.
So, in summary, LVR restrictions can affect your ability to raise the amount of loan you need and unfortunately may put more expensive properties out of reach. This is where a Mortgage Broker can play an important role for you.
We are in constant communication with the major lending institutions and know which ones are most likely to approve high-LVR loans on a given day. LoanPlan are North Shore-based mortgage advisers with years of local knowledge about the Auckland property market. Whether you’re house-hunting or want to arrange pre-approved finance, talk to us today.