Difficult Time For Lending
Posted by admin in Lending Success, Mortgage Articles, News on June 2, 2010
We Can Do A Second Mortgage
We have a few million $NZ we can access for second mortgage placement.
Lenders are currently quite sensitive to high first mortgage amounts and priority figures and so Caveat seconds are starting to re appear as they did many years ago.
These are great options for people who have a deal that needs to be done and only need the lending for 12 to 24 months.
All deals on a case by case basis.
Product: Interest Only.
Term: 12 to 24 months.
Security: Residential Property.
Rate: 14% to 17%
Lvrs: under 75%
Max Amount: $100,000.
Right to pay down: Some lenders will allow principal payments.
This option is certainly worth a try and is very competitive with other available options out there at the moment.
Asset Lending Advances
This is a great option for people with lots of equity but you don’t meet the income requirements of the major lenders for what ever reason.
Security is via a First Mortgage and interest rates are from 8.75%
Security that can be used can range from Residential Real Estate to Farms to Commercial Real Estate.
Give us a try.
Should You Refinance?
Posted by admin in Good Stuff To Know, Mortgage Articles, Refinance on May 22, 2010
Your home loan , for most people, is the largest financial commitment you will ever make.
Rising or falling interest rates can have a huge impact on how much you pay back each month and how much you pay in interest over the life of the loan, which is really the most important part when considering your home loan choices.
By switching loans you could save yourself thousands of dollars in interest or perhaps you would like to take advantage of features offered by another lender or loan.
Before you decide to refinance your current home loan, work out how much it will cost you to switch to the new home loan.
Depending on your current interest rate and any terms you may have signed for when taking out the loan your current lender might charge you fees to exit your current loan, and a new lender will charge you fees to take out the new loan.
Work out whether reducing your interest rate with a new loan outweighs the costs of switching from your existing one. The lower the exit and start-up fees, the more you stand to gain by switching.
If the fees are high it may not be worth switching or may be better to wait and switch later. Ask yourself: ‘Is the cost of switching worth the potential interest rate saving.
Drop us a line if you would like to know just how much money you could save with a new home loan.
Dad And Daughter Get A Mortgage
Posted by admin in Uncategorized on March 30, 2010
One of our favorite funders was sent application from a father and daughter, to refinance and top up the mortgage on a home owned by the father (and to buy out his ex-wife’s share).
The father was on WINZ and needed his daughter’s support for debt servicing to work. She was in stable employment on a good income. Both had clean credit and the daughter was moving back in to live with her father.
Our friendly lender approved the loan conditional upon the daughter becoming joint owner of the property, i.e. she benefited from the transaction too.
Do you know someone looking for a loan in a similar situation?
Contact us using the contact page
No Deposit Loans
Posted by admin in Lending Success, Mortgage Articles, News on February 24, 2010
It can still be done.
One of the brokers in our network recently had this success.
Recently a couple approached us about purchasing their first home together.
As a gift from the family, the couples family were gifting them the equity in a home by allowing the couple to purchase at a discounted price.
A deposit had not been saved and the young couple required 100% funding of the purchase price. (this was possible due to the equity in the property being gifted.)
The husband and wife were self employed and had a couple of defaults on their credit report.
Debt servicing however appeared fine based upon self-declared incomes although financials provided indicated the income declaration was reasonable.
The successful loan was approved of just over $194,000 at 10.35% pa for a 30 year term.
Do you know anyone in a similar situation?
Let us know, we might be able to help.
Obviously this is an example of using a great mortgage professional.
Todays Money Markets
Posted by admin in Interest Rates on November 19, 2009
Official cash rate 2.50% (unchanged)
90 day bill rate 2.78 (down from 2.80%)
1 year swap rate 3.35 (down from 3.45)
3 year swap rate 4.95 (down from 5.03)
10 year bond rate 5.95 (down from 6.03)
Kiwi dollar 0.7380 (up from 0.7212)
Interest Rates Rise Again
Posted by admin in Interest Rates on October 16, 2009
Asb bank has raised its fixed mortgage rates today.
The move comes at a time when interest rates in the wholesale money market are rising.
There is speculation that the reserve bank of new zealand will raise its official cash rate sooner than the latter part of 2010 it has been signalling.
Reserve bank of australia (rba) governor glenn stevens said this week it would be a mistake to be “too timid” to raise interest rates in response to a brighter economy.
The rba board took the first step to returning interest rates towards what mr stevens described as more normal levels last week, when it lifted the cash rate to 3.25 percent, from 3 percent.
In new zealand, government-owned kiwibank announced last week that it was raising many of its fixed mortgage rates.
Asb has hiked its six month mortgage rate by 25 basis points to 5.75 percent. Its new five-year rate is now 8.75 percent.
The one-year rate is 6 percent, the 18 month rate is 6.6 percent and two-year rate is 7.15 percent. The three-year rate is 7.95 percent and the four-year rate is 8.5 percent.
Anz economists said today that a sell off in new zealand’s interest rate market yesterday on higher than expected consumer price index data continued overnight. The sell-off raised interest rates in the money market across the yield curve.
“bias is firmly to the pay side,” anz said.
http://www.interest.co.nz/mortgages.asp?100
Lo Doc 75
Posted by admin in Good Stuff To Know, Mortgage Articles on October 12, 2009
Last week an application for a long term self-employed borrower with clean credit, a strong deposit and very good bank account conduct was presented to one of our specialist lenders. They did not require GST returns as the applicant was not in a GST registered profession.
They approved a $450,000 mortgage over a residential property being purchased for $650,000 (RV at $640,000 = 70.31% LVR) using the new No Financials 75 product.
The loan was approved 9 October and will settle on 16 October.
Why Get A Valuation?
Posted by admin in FAQ's, Good Stuff To Know on September 21, 2009
What is your property worth?
If you fail to meet your interest payments, your property provides the bank with security. They are allowed to take control of it and sell it to recover the money they leant you in the first place, plus any interest you have failed to pay.
The bank therefore needs to know that you property is worth more than the amount they are lending you. Otherwise they might sell it and not get all their money back.
If the amount you want to borrow is small compared to the value of your property, the bank may not need proof of the value of the property. As the amount gets bigger in comparison to the property’s value, the bank may ask for a rates notice – which gives the council valuation for your property. This is held to be a general guide to the property’s value, but not strictly accurate (as it may be up to 3 years old).
If the amount is large in comparison to the value of the property, banks will typically require a valuation to be done by a registered valuer. A valuation more than six months old is held to be outdated. One that is three to six months old may be accepted, or may also be deemed outdated depending upon the lender
The Most Common Mortgages
Posted by admin in Mortgage Articles, Types of Loans on September 21, 2009
The most common mortgage types are ‘Principal and Interest’ and ‘Interest Only.’
Principal and Interest is a loan where you are making payments of the interest for the amount borrowed, plus repaying small amounts of the amount itself (the principal). Therefore the amount of money you owe slowly reduces.
Interest Only is a loan where the only payments you are making are for the interest itself. The amount of money you owe remains unchanged.
Fortune Manning
Posted by admin in Other Mobile Professionals on September 21, 2009
Fortune Manning is a long-standing provider of legal services to Auckland City. Our recent wins at the NZ Law Awards confirm that we are a firm well recognised by our clients and our peers for providing exceptional service at a realistic price. We’ve been committed to enlarging and refining our skills for more than 100 years and we will provide you with professional advice in a prompt personalised manner.
Level 12, Gen-i Tower
66 Wyndham Street
Auckland 1010
New Zealand
Telephone: (+64 9) 915 2401
Facsimile: (+64 9) 915 2402
Website
www.fortunemanning.co.nz