To help you better understand our services and the mortgage process, we’ve compiled answers to some of the most frequently asked questions below.
#Myth: Mortgage Advisers Are Expensive This is one myth that absolutely needs to be busted! We don’t charge for our time, in fact we can save you money, and in several ways. Let us take the hassle out of obtaining a home loan. We’ll shop around for the best deal possible, at no cost to you!
A common misconception is that it doesn’t matter where you go because you’ll be paying the same mortgage rate. This is almost always incorrect. Similarly, choosing your current bank as your lender doesn’t always mean you get preferential treatment when it comes to loan rates. You should always shop around instead of assuming that you’re getting the best deal… Better yet, let us do all the hard work for you!
Yes! Let’s be honest, reading the small print on your home loan may not seem that appealing. However, in the finer details there may be extra charges and interest rates that you are unaware of. Having a lending expert at CMA review your home loan will ensure you’re receiving a competitive interest rate, fees and features. We can review your home loan interest rate for you at no cost to you… How easy is that!
Yes, let us do the leg work! When applying for a home loan there’s a fair bit of administration and bureaucracy involved. Finding the best deal or the right policy for you can involve running over town to different banks and providers…We can help you through the entire process, taking as much work off your plate as we can. We will help negotiate the best possible outcome for you! Oh, and it’s a free service. Why wouldn’t you?
It’s easy. Simply contact the team at Caldwell Mortgage Advisers and we will get the ball rolling with your home ownership and insurance needs!
There are two main factors to consider when deciding the right time to refinance. First, if you received a cashback when you took out your current loan, it will usually be subject to a clawback period of either three or four years depending on your bank. If you refinance before this period ends, you may need to repay some or all of the cashback amount.
However, in certain situations, it can still be worthwhile to accept a partial clawback if refinancing allows you to secure a significantly lower interest rate. The second factor is whether you have any fixed-term loans and how close they are to expiring. Many people choose to refinance once their fixed rate ends. While it is possible to refinance before then, break fees may apply. Whether is makes financial sense will depend on your current interest rate, loan amount, and overall goals. A quick conversation with a mortgage adviser can help you assess the costs and benefits and determine the best option for your circumstances.
You’ll need to budget for expenses such as legal fees, building and LIM reports, valuations, insurance, rates and moving costs. These expenses can add up quickly, so it’s important to factor them into your planning to avoid any unexpected surprises
A conditional offer is exactly what it sounds like – an offer that depends on certain requirements being satisfied first, such as securing finance approval or receiving satisfactory building or LIM reports. Once those conditions have been fulfilled, the offer becomes unconditional and legally binding.
Loan-to-value ratios (LVRs) are lending rules set by the Reserve Bank of NZ (RBNZ) that determine how much you can borrow relative to the value of a property. The standard LVR limit for owner-occupiers is typically set at 80% for existing properties (which is where the 20% deposit rule comes from), and up to 90% for new builds.
For example, if you’re purchasing an existing home for $900,000, you would generally need a minimum deposit of $180,000, meaning you could borrow up to $720,000) to access the most competitive rates and lending options. For property investors, LVR limits are usually stricter – commonly 70% for existing properties and 20% for new builds. While banks are allowed to complete a small percentage of lending above these LVR thresholds, borrowers with lower LVRs typically have access to more lender choices and more competitive interest rates.
Working with an accredited Mortgage Adviser gives you access to more choice and a greater likelihood of finding a lending solution that genuinely suits your needs.
If you go straight to your bank, you’re limited to that bank’s products, policies and criteria. A Mortgage Adviser on the other hand, can compare options across multiple lenders, explain the differences, and recommend a structure that aligns with your goals – whether that’s lower repayments, flexibility, or faster repayment. Using one of our expert Advisers can save you significant time and stress by managing the paperwork, communicating with the bank, and going through the approval process.
Pre-approval means the bank has assessed your financial position and confirmed they’re willing to lend you a certain amount – subject to specific conditions.
At this stage, you haven’t borrowed any money or purchased a property; it’s simply an indication of what you can afford. Common conditions may include a satisfactory valuation on the property you choose, along with confirmation that your financial situation hasn’t changed. Having a pre-approval in place puts you in a strong position when house hunting. You’ll know your buying budget, can make offers with confidence, and may be in a better position to negotiate because the vendors can see you’re financially ready to proceed. Pre-approvals are typically valid for three months is valid for 3 months, but if you haven’t secured a property within that time, they can be extended for a further 60 days…provided your circumstances remain the same.
Yes – If you’re a first home buyer, KiwiSaver can be a great way to help fund your deposit. Many buyers use their KiwiSaver savings to get onto the property ladder.
To qualify for a first-home withdrawal, you must:
If eligible, you can withdraw most of your KiwiSaver balance, including government contributions (tax credits).
If you’re a member of a complying fund instead of KiwiSaver, you may also be able to withdraw funds for a first home. However, not all complying funds allow this, so you’ll need to check with your fund’s trustees.
Buying with friends or family – often called co-ownership – can be a smart way to get into the property market sooner and share the financial responsibility of homeownership. By combining incomes and deposits, you may be able to borrow more and reduce individual costs.
That said, it’s important to fully understand the potential risks and challenges and to agree upfront on how any issues will be handled if they arise.
Each person should obtain independent legal advice. A lawyer can prepare a property sharing (co-ownership) agreement that clearly sets out:
Lenders can have different policies when it comes to co-ownership, depending on who you’re buying with. Some banks are more comfortable with friends purchasing together, while others prefer family arrangements. A mortgage adviser can help you navigate these differences and identify the lender best suited to your situation.
The right time to refinance depends on two key factors.
1. Cashback clawback period
If you received a cashback when you took out your current loan, it will usually be subject to a clawback period of three or four years (depending on your lender). If you refinance before that period ends, you may have to repay some or all of the cashback. That said, in some cases it can still be worthwhile – particularly if moving to a lower interest rate outweighs the cost of repaying part of the cashback.
2. Your fixed-term rate
You’ll also need to consider whether you’re currently on a fixed-rate loan and how close it is to expiring. Many borrowers wait until their fixed term ends before refinancing. While it’s possible to refinance earlier, break fees may apply. Whether it makes financial sense will depend on your current rate, loan amount, and overall goals. A quick chat with one of our mortgage experts can help you run the numbers and decide what’s best for you.
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