Mortgage Broker – Answers First Time Home Buyer Questions

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Why use a mortgage broker?

What can I afford?

As a Rule of Thumb, banks will typically lend around 5 times your (combined) annual salary. Of course, this doesn’t take into account any dependents, short term debts or unusual expenses, so it is best to draw up a budget to work out exactly what you can afford. The experts at AIM are happy to help you work through your budget.

Where is my Deposit coming from?

Most banks want to see a 20% deposit, as per the Reserve Banks LVR restrictions. There are a number of ways this can be achieved: Savings, KiwiSaver withdrawal, Home Start Grant, gifted money, or even equity in your parent’s property. There are a few exemptions to the 20% rule, however. Ask your advisor if they apply to you.

What does LVR mean?

Can I buy at Auction if I need finance?

Many houses in New Zealand are sold at Auction. The problem with this is all Auction purchases are unconditional, which means you must have your finances in order before you bid. If you have a pre-approval in place and a 20% deposit, you should be able to bid, but make sure you get approval from the bank on the property you want to bid on. AIM is here to help make your first home a stress-free reality. Get in touch with us today to start the process.

AIM Information sheet – Download here

For more information, please contact Edgar Mahon on 021 257 7145