Mortgage Brokers for First Home Buyers
First home buyers in New Zealand have it particularly difficult, because house price rises have been some of the largest in the developed world. First home buyers are having to pay ridiculously high sums of money for ordinary houses and also having to borrow ridiculously high sums of money. That’s why its so important to have a broker find a good deal for you on your mortgage.
The previous national government has tried to ease the pain for first home buyers by insuring that some first home buyers can get a mortgage with a 10% deposit, provided they qualify for income limits, have a good provable income and have a good credit history. Residential buyers who have previously owned a house need to find a 20% deposit, and investors need to have a 40% deposit.
Existing owners have the benefit of selling their existing house in order to fund their new house including the deposit. Investors if they have been smart will have accumulated working capital that will give them sufficient deposit money for future purchases. First home buyers on the other hand absolutely had to save up the deposit, and if the buyer’s are not or a high salary then this can be very difficult simply because cost of living expenses eat away at the end come. They can of course cash in some or all of their KiwiSaver funds, and this was in fact one intention of the KiwiSaver program.
Foremost Homebuyers the smartest strategy is to choose a good mortgage broker. Mortgage brokers Porirua provide their services to buyers for free, as they are paid a very healthy commercial by the bank when the line was activated. Given today’s house prices and loans, the 0.65% commission paid to Mortgage Brokers can seem exceedingly generous when compared against the 2 to 3 hours work required to provide the service to the customer. A half million dollar mortgage for example will learn the broker $3,250, which is not bad for a few hours work, but the payment does reflect that there can be long gaps between new clients, and out a lot overtime for an independent broker is simply spend looking for new business.
Good mortgage brokers for the first time buyer will provide more than simply getting the paperwork correct and getting a loan advanced to the customer. For many first home buyers they will need assistance and advice and how to qualify for a loan or how to qualify for a better life, and the mortgage broker may need to counsel and coach them, particularly if they need to take intermediate steps in order to ensure that they are properly presented to the banks. Good mortgage brokers Kapiti are happy to provide this type of counselling and coaching service, because in the end of it helps their client to win a mortgage you could also make certain that the mortgage broker gets paid as well.