No matter at what stage you are in this process, with a simple phone call I will be able to guide you through this process, whether its how to save for a deposit, how much deposit is required, how can parents help, how do I apply so a multitude of ways to help.
In an ideal world, you want to have at least a 20% deposit but this may not be possible so at times you may be able to get approval with as little as 5% depending on the property being purchased, the income you have and monthly expenses, and budget you follow.
If you are struggling to save a deposit I can discuss options such as having parents guarantee a loan, parents providing a gift or providing a family loan, so lots of options to pursue that I can help you navigate around.
This will be depending on several things, how much income you have, how much deposit you can put together and what your current and future monthly expenses will be. Each bank has different formulas to work out what is possible. Lucky enough I have access to many banks and can work out easily once filling out a fact find (Application) to what you can afford. The more accurate this information the better advice I can provide.
There are so many ways of increasing funds quickly towards a deposit. These can be pretty passive or you can get ruthless. It depends on how keen you are to get on the property ladder
- Live on one income, save the other (if you are in a two-income family)
- Cut up all the EFTPOS cards and just operate on cash as it’s much easier to keep control of your spending and harder to get funds out.
- Reduce the number of accounts you have to just two (spending and savings) the most successful people I deal with have a very limited number of accounts
- Set up automatic payment directly into savings account from pay (what you don’t see you don’t miss)
- Set up two to sign on a savings account so it can’t be withdrawn from a card, or online banking and you have to physically enter the branch to get funds out
- Reduce all unnecessary debt from your lives
- Reduce Credit card limits, note; that your credit limit should be no more than what you can afford to clear each month!
- Combine into Joint accounts!
I deal with multiple banks and by me being an independent source the bank has to give the best deal to us otherwise we go somewhere else as its very easy for me to do so and they know that. At times banks offer special rates to mortgage advisers that aren’t available to general public who go directly to the bank or they match what we can get at another bank, so I have many years of experience dealing with how banks deal with their pricing and understand what is a good price or not for new lending or existing lending.
I have had times before when customers have been declined directly by the bank and I have managed to get approval from the same the bank provided with the same information. This shouldn’t happen, but it does, as sometimes you may strike an inexperienced lender, or information that you have provided to bank has been interpreted incorrectly by the bank officer. At Karl Larsen Mortgages I like ironing out all the creases of an application and if there is an issue I mitigate that issue. I’m almost a filter so when I present an application to the bank, everything is known and dealt with, and it's 100% transparent to the bank.
Every bank is different regarding policies, processes and servicing requirements so at times if it doesn’t work for your bank it may very well work at another and I use all my experience as a lender to align you with the bank that firstly will approve and secondly provide you with the best package regarding products, pricing, service.
The key here is not everything is equal, ie the banks offer different packages, and rates and sometimes you may be able to borrow more at one bank than another bank. At times it may be best to move from an existing bike bank to make a deal work, so I can assist in every aspect of taking you through this journey and providing options, to make it work for you. There is no right or wrong way to do this, at Karl Larsen Mortgages Ltd we will step you through the options, point out the risks and advise on what is right for you based on your situation to get the most you can.
As a Mortgage adviser, we deal with multiple different banks so can help you either get the best deal at your current bank or shop around to find a bank that may suit you better either because of the price, products available or the whole package. Banks tend to focus on the new customer rather than existing customers so as a Mortgage adviser we are independent and try to keep the bank we deal with honest and provide you with the best deal that is available at that bank ever bank it may be.
If you sell first or buy first they both have challenges. If you sell first all the pressure will be on finding a house to replace it. If you buy first all the pressure goes on selling you’re your house at the right price to make it work. There are options available, ie Bridging finance but there are so many permutations to this you will need to talk to me to discuss what’s best for your circumstances as everyone and every situation are different.
There are so many ways of saving money on a home loan, and this could be from
- Getting a lower interest rate on loan
- Changing loan to an offset facility where funds saved reduces the amount of interest you have to pay on money borrowed
- Having a total money type of loan where the cash you have saved reduces the interest you have to pay against your loan
- Increasing loan payments to reduce the term of the loan so overall interest is reduced
- Making lump-sum payments
- Sometimes under financial trying times you may want to extend the loan out so that payment reduces Often your bank may not grant this but another will so I can provide you with that option
I deal with multiple banks and by me being an independent source the bank has to give the best deal to us otherwise we go somewhere else as it's very easy for me to do so and they know that. At times banks offer special rates to mortgage advisers that aren’t available to the general public who go directly to the bank or they match what we can get at another bank, so I have many years of experience dealing with how banks deal with their pricing and understand what is a good price or not for new lending or existing lending.
I have had times before when customers have been declined directly by the bank and I have managed to get approval from the same bank provided with the same information. This shouldn’t happen, but it does, as sometimes you may strike an inexperienced lender, or information that you have provided to the bank has been interpreted incorrectly by the bank officer. At Karl Larsen Mortgages I like ironing out all the creases of an application and if there is an issue I mitigate that issue. I’m almost a filter so when I present an application to the bank, everything is known and dealt with, and it's 100% transparent to the bank.
Every bank is different regarding policies, processes and servicing requirements so at times if it doesn’t work for your bank it may very well work at another and I use all my experience as a lender to align you with the bank that firstly will approve and secondly provide you with the best package regarding products, pricing, service.
It's easy getting into an investment property, it’s just a matter of having enough equity, or cash and enough income to support the deal I can show you how.
Main banks (ANZ, Westpac ASB, BNZ) all require a 40% deposit or equity to purchase an investment property, however, there are non-main banks that only require a 20 % deposit or equity. So if you own a house already you may not need to supply any cash for an investment purchase. You may be able to use the equity in your current house to make up the deposit.
There are advantages and disadvantages to keeping Investment properties and owner-occupied properties at different banks. It all depends on your unique circumstances and this strategy will align with your long term goals. You may not have a choice to separate these if there isn’t enough equity to do so, to comply with reserve bank regulations, but if you can it may be an advantage, but again it depends on your circumstances.
This all depends on your long term goal, as that has to align with your repayment strategy. This will be unique to your situation so there is no right or wrong way of doing things.
Again, this also depends on your long term goal, as you also have to align your repayment strategy with your goals. Both methods of payment have advantages and disadvantages and there is no right or wrong way here. It's unique to you.
I have had times before when customers have been declined directly by the bank and I have managed to get approval from the same bank provided with the same information. This shouldn’t happen, but it does, as sometimes you may strike an inexperienced lender, or information that you have provided to the bank has been interpreted incorrectly by the bank officer. At Karl Larsen Mortgages I like ironing out all the creases of an application and if there is an issue I mitigate that issue. I’m almost a filter so when I present an application to the bank, everything is known and dealt with, and it's 100% transparent to the bank.
Every bank is different regarding policies, processes and servicing requirements so at times if it doesn’t work for your bank it may very well work at another and I use all my experience as a lender to align you with the bank that firstly will approve and secondly provide you with the best package regarding products, pricing, service.
I work with multiple different banks and finance companies so generally there is a solution out there that may be able to provide a better solution to you.
There are costs with changing banks, these could be
-Lawyers costs
-If your loan is currently fixed, there may be break costs
-If you have recently changed banks you may be asked to pay the cash contribution back
Keep in mind that if you change banks, the new bank will reward that change by paying cashback into your account (providing a cash contribution). At times this will cover a good portion of the costs and at times you may even end up with money in your pocket
All banks have dedicated teams to help this process so it is as streamlined as possible. Most of this process can also be done online, which helps!
I deal with multiple banks and by me being an independent source the bank has to give the best deal to us otherwise we go somewhere else as it's very easy for me to do so and they know that. At times banks offer special rates to mortgage advisers that aren’t available to the general public who go directly to the bank or they match what we can get at another bank, so I have many years of experience dealing with how banks deal with their pricing and understand what is a good price or not for new lending or existing lending
© 2022 Karl Larsen Mortgages. All rights reserved | Designed and Hosted by
