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Property Investing FAQ

There are many different strategies for investing in Property and each one has their own way of financing and varying costs. Finance for buy and hold property is different than the “quick flicks” or “do ups”
There are various finance options available to suit the different needs.
For individual feedback for the strategy you are proposing please email us with an overview so we can give specific feedback regarding what options are available to suit your needs.


How much can you borrow?

– 80% is the general LVR for investment property

– This all depends on income, how many dependants, what other personal loans you have, Student loans etc

– If there are multiple properties on 1 title then the LVR will be less depending on the funder

Do I need to prove income?

– Yes, depending on the type of application, but the interest rates are better if you are able to prove income

– Lo Doc mortgages are once again available

– 75% LVR for a long term Lo Doc loan (some areas differ)

– 65% as an asset lend loan for 6 months. This is particularly useful for property trading

Can I borrow while overseas?

– Non Residents can borrow up to 80% LVR

– The banks have less issues with Aussies and New Zealanders or those with NZ residency but lending is available for all nationalities. The LVR may be reduced though.

– Do allow more time to obtain finance. It will pay to ask us to provide a pre approval so that you can purchase confidently when you find a property. Do be aware that a pre approval is not the same as an unconditional approval

What do I need to provide to obtain a loan approval with proof of income?

– Photo ID for each applicant driver’s license or passport) these need to be verified by a local JP or solicitor

– Proof of income (last 3 payslips from the employer or 2 years financials for the self employed 3 Months bank statements (showing daily balances as well as deposits and withdrawals

– 6 Month loan history for any existing mortgages (if applicable)

What do I need to provide to obtain a loan approval for a Lo Doc loan?

– Photo ID for each applicant driver’s license or passport) these need to be verified by a local JP or solicitor

– Last GST return unless you are living overseas. However Lo Doc  for offshore applicants is harder

– 1 Months personal and business bank statements (showing daily balances as well as deposits and withdrawals

– 6 Month loan history for any existing mortgages (if applicable)

In both cases, once you purchase, we will need you to provide the following

– S&P agreement

– Rental appraisal (in the case of an investment property)

– Valuation (RV) if a private purchase i.e. not through a real estate agent or a higher lending ratio. Please note; every situation and lender has slightly different criteria

Please note: Make a S&P agreement subject to finance and if you are not sure then please contact your solicitor to confirm


Why use Homelink Finance?

– We are investors ourselves and know what investors look for in finance

– Homelink Enterprises (NZ)Ltd was established in 2000 but was writing mortgages under another name prior

– Tina Webb, The CEO is a Registered Financial Advisor

– We belong to the PAA (Professional Advisors Assoc)

– We deal with 10+ different lenders from main stream banks to non bank lenders

– Even though the office is in Auckland we source finance for the purchase of residential property throughout New Zealand for both local (NZ) clients and those living overseas thanks to the internet, skype and phone communications

– If you live local we can come to you or vice versa

– We have not just survived the recession but thrived through it and are experts at sourcing the right financial product for your needs

Why use a Mortgage Broker rather than deal direct with a bank?

– Good experienced advice, working as investors for investors

– Property is one of the largest investments you will buy and helping you through the process is what we do best. More than just organising a mortgage!

– As mortgage brokers we know which lender will be best in your case at the best rates

– Lenders have different policies and criteria and  you could be wasting a lot of time dealing with a lender with who you won’t qualify, why run the risk of missing out on your finance date by not knowing where to go for the best deal for you

– Best of all, OUR SERVICE IS FREE !

– So who pays us? The mainstream banks do.

– If you need a non bank Lo Doc product then any fee will usually be capitalized onto the loan

– Does this have any impact on your interest rate to the bank? No, not at all and often we can get a waiver of any application fee for you and some banks will contribute toward a portion of your legal costs (subject to bank approval)

 

 

When you are ready to apply for finance or if you  just have some questions then please