Coaching you through the process of
financing a home, so you can concentrate
on what's really important in your life.

Home loan borrowers flocking to fixed rates

Thursday, March 20, 2014

To fix or not to fix? 

How on earth do you make the right decision given the economy in NZ and the world.  Well my suggestion is to look to your own family cashflow situation first and base your decision on that. Yep, sure rates are trending upwards but consider the following:

  1. What is going to change in our family financially in the next 1 – 5 years?
  2. Is stability more important than the best rate?
  3. Do I just need to survive the next 6 – 12 months and then we will have more income (i.e. baby on the way, kids about to go to school)?
  4. Are we going to receive a lump sum in the near future?
  5. We can afford to pay more now but plan to have kids in a few years.
These things are just as important in making the decision to fix or not. Take these into consideration along with the trend in rates and you’ll make a more informed decision. If that all sounds too daunting then give me a yell. The banks pay me to help you through this process and it costs you nothing. Ph. 03 319 5482, 027 503 1080 or jude@investorsolutions.co.nz

how the Chch govt values may save you $$$$$

Monday, March 17, 2014

If you bought a house in Chch over the past few years with a small deposit you may be pleasantly surprised...

Its possible you currently have loaded interest rates or are not able to get any discounts because of this, but there may be a bit of relief in sight for you.  If your new rateable value is higher than the 2007 one then we may be able to get the loading removed.  You need to be either on floating or coming off a fixed period for us to do this for you. 

All you need to do is check your rateable value online www.ccc.govt.nz and then call me. I'll do the maths for you and see if we can reduce your repayments, and even ask for a discount!

 Contact me if you'd like to discuss your situation. 027 503 1080 or 03 319 5482.

time to refix? heres a trick to save money

Friday, January 31, 2014

If you are within 30 and at some banks 60 days of coming off your fixed rate loan we can reserve a rate in advance and lock it in.  Perfect in this situation of rising interest rates, you may just sneak in before they go up.

small deposit loans getting easier

Friday, January 31, 2014

I had a great conversation with one of the banks yesterday. They advised they are now looking at applications over 80%...

They are certainly cherry picking the best applications and the strongest will get an approval each day.  So, if you have:

smileyStrong incomes and affordability

winkClose (ish) to a 20% deposit

angelLittle short term debt

laughGreat bank account conduct

You will be much more likely to get an approval than an applicant who is weak in these areas.  And you will certainly be a lot more likely than you would have been a month ago when there was no chance!

The best news is that if one bank is doing this the rest will follow so - dont lose hope - its always worth a conversation with me to see if you have a chance of getting an approval.

Contact me if you'd like to discuss your situation. 027 503 1080 or 03 319 5482.

Yippee! changes to 20% rules makes building a house exempt

Wednesday, December 11, 2013

Well, fantastic news announced yesterday...

If you want to build a house then you are now exempt from the 20% rules.  We are waiting for more news from the banks as to specifics, but this opens things up hugely.  If you were thinking of building then it may now be back on the table.

We are also hearing whispers that the reserve bank will relax the 20% deposit rule early - mid next year too so hopefully this announcement is just the start of relaxing things.

So - keep saving that deposit, and if you'd like to discuss this news today and how it affects you then please just give me a yell jude@investorsolutions.co.nz or 027 503 1080 and lets see if we can get you into a home.

Got 10% deposit and feeling left out?

Friday, November 22, 2013

There was one bit of good news on 1 October when the reserve bank changed the rules regarding the 20% deposit requirement. They made the Welcome home loan useful at last, and now its the hero of the day...

Here's the guts of it, its actually better than some of the banks were offering for loans with a 10% deposit. So if you:

  • earn less than $80,000 (1 borrower) or $120,000 (2 or more borrowers)
  • have been in your job more than a year
  • have a 10% deposit (can be a mix of kiwisaver, first home buyers grant, gift, savings)
  • are a NZ citizen or permanent resident
  • are a first home buyer - or owned a house before but are in the same financial position as a first home buyer with few assets and are going to live in the home.
  • have minimal short term debt and clean credit

then you may qualify! the fee can be added to the loan and you get normal bank interest rates. AND they have increased the price you can buy up to, for example Chch is now up to $400,000.

Its a bit of a slog getting the paperwork sorted as NZ Housing Corporation want more than the banks but that's why I'm here - to guide you through the process.

So, if you fit the criteria above and want to buy a home then what have you got to lose?. Give me a yell jude@investorsolutions.co.nz or 027 503 1080 and lets see if we can get you into your first home.

Has the sky really fallen, nah its just different so dont give up

Friday, October 25, 2013

Well, we thought the sky had fallen a few months ago when we got word (in advance) of the impending rule changes...

We were unsure as to what the banks would do in response, would the honour pre approvals with a smaller than 20% deposit? I thought they would and was proven wrong, and the extent to which the banks had to comply with the directive meant that drastic measuers had to be taken. We saw some preapprovals cancelled outright, other banks just kept increasing the fees so much that it became increasingly unaffordable and so those buyers (generally first home buyers) who were already weary of traipsing through open homes with incredible numbers of other people there have given up. For now. And I say for now, because already we are seeing that it is still possible for a buyer with a smaller deposit if we look a bit more closely at what is available and how we can use the resources around us.

So - re-enter the welcome home loan. This has been around for many years, but it was cumbersome and very limited in who qualified and the price you could buy for. The house price caps were very unrealistic as were the income caps. So the changes have now meant that this kind of loan fills the gap the banks have vacated. A couple can earn up to $120,000, price to purchase has gone up to $400,000 or more in many centres and you can now apply for the first home buyers grant and buy for up to $400,000. And, you only need a 10% deposit. Many lenders offer this loan and so it is now a very viable alternative for buyers without 20% deposit.

Mum and dad have come back into the equation, if they have equity in their home they can help out buy providing a guarantee. We can minimise the risk to parents and the structuring of these loans needs to be done properly, but again, this has been around for many years - we just didnt need it before. Or how about buying a house jointly with mum and dad and having a clear exit strategy - this way theres no handouts for the kids and good lessons learned and a win win for both parents and kids. We did this with both of our sons and it worked fantastically to get them into their own homes at age 21. I'm very happy to share that strategy if you are interested. email jude@investorsolutions.co.nz and I'll let you know the details and how it worked.

As the weeks are passing banks are starting to relax a bit on where the deposit comes from. At first they said absolute no to getting a personal loan to make up your shortfall in deposit, but now they seem to be ok with this and 2 finance companies have jumped into that breach. 

So in short

This is an incredibly dynamic period of time where the advice you got a month ago may now be out of date, and what was possible, then not possible may be possible again before the year is out. For now more than ever, Id say get good advice from a qualified financial advisor who works specifically in arranging home loans. There is usually a solution if we look hard enough. And you know I am always available to help you navigate the maze of finance right now. 027 503 1080, 03 319 5482 and jude@investorsolutions.co.nz

Feel free to pass this on to your colleagues and friends and have an awesome day! 

feeding kids in NZ

Tuesday, June 11, 2013

Feeding our kids is very topical at present, but at Investor Solutions we have been helping kids for over 3 years. For every loan we do we give to charity.  For the first 2 years it was to orphans in Nepal to have a place to live, after holidaying there and seeing the poverty all around us.  This year we brought our giving back to NZ and to feed kiwi kids, see the widget on our website and follow the link to Buy 1 Give 1, giving through businesses where 100% goes to the kids.

ASB growth pack changes

Friday, May 31, 2013

Well, the fantastic growth package ends today and has been replaced with a watered down offer.  It still has good discounts but is only avail to people with 20% deposits. 

4.95percent for 1 yr

Friday, May 31, 2013

most of the banks are now offering 4.95% for 1 yr, but dont jump at the cheapest rate on offer, its best to review your lending and get the most appropriate term for you own circumstances.  You just need to contact me and I can do a review with you and of course there's no charge to you for this.



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