With the changes in the Reserve Bank requirements for lending to Loan to Valuation ratios of 80% or more (that is to people who don’t have a 20% deposit on their property) in 2013, more people are finding it difficult to get a mortgage.
Or maybe your credit record isn’t as good as you would like?
However, all is not lost. In the Diana Clement article below from the NZ Herald, she looks at the range of options available. These include second tier lenders, bridging finance and solutions for people with credit records that aren’t squeaky clean.
It is important to note that these solutions will come with additional costs to the borrower. These can include a fee to set up the mortgage, or higher interest rates. But as Diana notes, using these solutions can be the first step to get you into your property. After you have been able to get it set up and running, in a few years, your situation could be a lot better and you may be able to move on to a main stream lender, or renegotiate your terms and conditions, as we have outlined in the above articles.
If you would like some assistance with making sure that your mortgage arrangements are working well for you, contact us by clicking here.
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By Paul Swarbrick