Need a Highly Experienced Mortgage Broker in Auckland?

Your borrowing capacity depends on more than just your income.

Banks typically consider:

• Your income and how it is earned
• Existing debts and credit limits
• Household and living expenses
• Number of dependants
• Your deposit or available equity
• The type of property you are buying
• Your credit history
• The proposed loan term
• The bank's servicing or test interest rate
• Debt-to-income requirements

Two people earning the same income can have quite different borrowing capacities.

We can review your circumstances and give you a clearer indication of what may be achievable before you start seriously looking for property.

A 20% deposit is generally considered the benchmark for an owner-occupied home, but it is not always essential.

Reserve Bank rules currently allow banks to make a portion of their new owner-occupier lending above 80% LVR, meaning some borrowers may be able to purchase with less than a 20% deposit. Individual banks still apply their own lending policies and may charge additional low-equity costs or apply different interest rates.

Your deposit can potentially come from sources including:

• Cash savings
• KiwiSaver
• Sale proceeds from another property
• Equity in an existing property
• A family gift
• In some circumstances, family support or additional security

We can help you work out the most appropriate deposit strategy rather than simply assuming you need 20%.

Every bank has its own lending criteria.

There can be differences in how lenders treat:

• Bonuses and overtime
• Commission income
• Self-employed income
• Rental income
• Boarder or flatmate income
• Credit cards
• Existing mortgages
• Childcare costs
• Business income
• Investment properties
• Proposed retirement age
• Different types of property

This means one bank declining an application does not necessarily mean every bank will reach the same conclusion.

Part of our role is understanding your circumstances and identifying which lenders may be the best fit.

The exact requirements vary, but you may be asked for:

• Proof of identity
• Payslips
• Bank statements
• Evidence of your deposit
• KiwiSaver evidence
• Existing loan statements
• Details of credit cards and other debts
• Confirmation of living expenses
• Sale and purchase agreement

Self-employed applicants may also need financial statements, tax returns, GST information or confirmation from their accountant.

Providing complete information early can make the application process considerably smoother.

You can do either.

A bank can advise you about the products and lending policies available through that particular bank.

A mortgage adviser can look at your circumstances more broadly and determine which lenders and structures may suit your situation.

At My Money, we don't believe our job is simply to find an interest rate. We help clients understand their borrowing position, prepare and present their application, navigate bank requirements, structure their lending and make informed decisions throughout the process.

In many standard residential lending situations, an adviser receives commission from the lender when a loan settles.

There can be circumstances where an adviser fee applies, particularly where considerable work is undertaken and a lender does not pay commission, or where agreed work falls outside a standard lending application.

Any potential fees should be clearly explained and agreed before they apply.