Mortgage Broking

Why use a mortgage broker?

A mortgage broker has access to multiple lenders and mortgage products, which gives you a wider range of options than a single bank can offer. Brokers can often secure better rates or terms based on their relationships with lenders and their knowledge of the market.

What does a mortgage broker do?

A mortgage broker is a licensed professional who acts as an intermediary between borrowers and lenders. They help individuals find and secure the best mortgage deals, tailored to their financial situation.

How does a mortgage broker get paid?

In most cases, mortgage brokers are paid a commission by the lender once your mortgage is finalised. This means you typically don’t have to pay them directly, though some brokers may charge a fee for specific services.

What documents do I need to provide a mortgage broker?

Typically, you'll need identification, proof of income (such as pay slips or tax returns), details of your assets and liabilities and bank statements. The broker will guide you through exactly what is required.

KiwiSaver

What is KiwiSaver?

KiwiSaver is a voluntary, government-backed retirement savings scheme in New Zealand. It’s designed to help New Zealanders save for their retirement, and it can also be used to buy a first home.

What is the government contribution to KiwiSaver?

The government contributes up to $521.43 each year if you contribute at least $1,042.86 between July 1 and June 30. This is called the Member Tax Credit and it’s designed to encourage people to contribute to their KiwiSaver accounts.

Can I use KiwiSaver to buy a home?

Yes, if you’re buying your first home, you may be able to withdraw your KiwiSaver savings, including contributions made by you, your employer, and the government (except the $1,000 government kick-start, if applicable).

Can I switch KiwiSaver providers?

Yes, you can switch KiwiSaver providers at any time. It’s free to switch and your new provider will handle the process for you. It’s important to research and choose a provider that aligns with your goals and risk tolerance.

Investing

How is buying an investment property different from buying a home to live in?

While buying a home for personal use focuses on your lifestyle needs, buying an investment property focuses on generating income and capital growth. Factors like rental yield, market trends and property location are key when purchasing an investment property.

How do I finance an investment property?

Financing an investment property typically requires a higher deposit (usually around 20-30%) compared to owner-occupied homes. You can use a mortgage, and in some cases, lenders offer interest-only loans to investors.

Can I use the equity in my home to buy an investment property?

Yes, many investors use the equity in their existing home to fund the deposit for an investment property. Equity is the difference between the current market value of your home and the amount you still owe on your mortgage.

Refinancing

Is there a cost to refinance?

Yes, refinancing typically involves some costs, such as legal fees and bank fees (such as early repayment fees). We’ll provide a clear breakdown of these costs so you can make an informed decision.

How do I know if I should refinance or refix?

The best choice depends on your financial goals and the current market conditions. We’ll help you weigh the pros and cons during your consultation.