The three most frequently asked questions as a NZ mortgage broker that I get would probably be: How much can I borrow? What would it cost? How soon can I get the money? Most people have a project or a purchase that they want to proceed with and their…
Typically, a new financing client would phone me and we would have a 10 to 15 minute chat on the phone about the situation and what their requirements are for finance. In this day and age, it’s enough to quickly get online and I can see their property and get…
I like to treat my clients no differently than I would treat a friend or a family member asking me for financial advice with my Ian Woods Mortgages hat on. I’ve been in the industry now for a long time and I understand the importance of a person’s financial health,…
The private lender is not dissimilar to a non-bank lender. In fact, they’d fall into the same category generally, but a private lender could be a private person or their trust who typically have been successful in their business career and they invest their money by way of making loans…
LVR is a term commonly mentioned in the media. It stands for Loan to Value Ratio. So, that’s the amount that a lender will advance based on the value of a property. For example, if a home’s worth a million dollars, a lender lends you $500,000. They’ve lent 50% of…
Loan security is always taken by the lender when making a loan advance to the client. If a client was to buy a property, a bank would normally want a first mortgage, and non-bank private lenders are no different. They prefer a first mortgage over the security property. If the…
Building and construction finance is typically harder to obtain than finance just to purchase a completed home. There’s obviously more risks there for a lender because costs can escalate, blowout, or there can be issues along the way with the construction, therefore, there’s a lot more questions asked. And the…
Bridging finance in NZ is typically a short-term, 6 to 12 months finance arrangement to enable someone to purchase something now, while they wait for proceeds from another transaction to enable repayment of that bridging finance. As an example, a person might want to buy a home now. They haven’t…
Second mortgages are available in the market for people whose current mortgagee won’t increase the mortgage to enable them to do what they want to do. So there are providers of second mortgages. They would generally be at a substantially higher rate than the first mortgage because of the risk…
A non-bank lending mortgage is where you take a mortgage from a lender other than a main bank. So if we have six main banks in New Zealand, we might have 60 non bank lenders and they will lend for purposes other than just buying a home. They might lend…
A mortgage broker is a professional advisor who gives advice to clients around the options of obtaining a mortgage. These options include not just the structure of the mortgage, but the pricing of the mortgage. By pricing, I’m talking about interest rates and products that are available, i.e. revolving credit…
Development finance is probably one of the hardest types of finance to get approved for. A bank traditionally would want the project pre-sold. By that I mean, they’d want the homes that are being built to be sold before the finance is approved. That poses a problem for a developer…