A: Nothing in most cases. The lender who provides your loan pays me a commission based on the amount you borrow. There may be circumstances where I do require a fee and these will be detailed to you before we start so you can choose to continue if you wish.
A: No. The bank considers the money they pay me to be good value as they only pay for success so there is no overhead to cover.
A: Only under certain circumstances. If you repay your loan in full or part outside the bank’s policies, the bank will require me to repay part or all of my commission to them and you agree to pay me the same amount unless you use me to refinance your loan to a different bank. The period of time for this requirement is currently up to 36 months. The bank will also require any cash incentive they paid you for your business to be repaid to them as well.
A: Most lenders pay a once-only commission upon settlement. A minority of lenders pay a “trail” commission for the lifetime of the loan with the expectation that I will manage the customer for certain ongoing services. These lenders pay less than others in up-front commission so there is little incentive for me to choose one against the other which I am not allowed to do anyway.
A: No. The bank that gets your business is either the one you prefer or, if you don’t have a preference, the one I recommend that is the best fit for your purposes after you and I have discussed your situation in full. I am accredited with the following banks and lenders:
A: The interest rate I negotiate for you depends on the strength of your application and the bank you choose. Considerations are your income and expenditure, the size of your loan, your deposit or equity, your credit history and the current policies of the lender. I will always endeavor to get the best deal possible for you using my knowledge of current conditions.
A: In most cases. Banks are currently offering incentives to get your business and I am able to negotiate these with the bank. The size of the incentive is determined by the bank from time to time usually based on the size of your loan.
A: No. The Financial Market’s Conduct Act 2013 requires me to place your interests not only above the bank‘s but also my own. Luckily for me this has always been my priority as I empathise strongly with people making what is usually the biggest investment of their lives.
A: The banks require more than one source of information to satisfy their policies around income. Pay slips, financial accounts for self-employed and contracts show important details of the income earned such as tax, Kiwi Saver deductions, overtime, non taxable allowances etc. In most cases, all that is needed is a single pay slip showing your income details for the latest pay period along with the totals for the year so far. Sometimes they may need more depending on your situation.
A: Yes. I have access to private lenders who will lend on equity only. These are usually for no more than 2 years and require an exit strategy such as the sale of the property or refinance to a main stream bank when your situation meets standard lending requirements. Interest rates are usually higher than those of banks and fees are charged upon settlement along with the legal fees of the lender. You can discuss the merits of this type of loan with me to see if it is right for you.
A: Possibly. I have access to specialist lenders who can lend when the banks can't. They usually charge an application fee and higher interest rates than banks. How much depends on the lender and your situation. This can be a very helpful solution that can rehabilitate your credit rating and get you back on track in time. Call me to discuss your particular situation.
A: A bank employee can only offer you the loan products of that bank and most are not qualified to give the advice I am able to offer. Unless you know their margins and how to negotiate, it’s likely that you will only be offered their advertised rates and benefits. I’m required and really happy to work in your interests without having to meet sales targets, so when you consider all the factors from my experience, enthusiasm, rates and benefits, to ease of use and level of service that I pride myself on, I reckon you can say you’re getting the best deal!
A: You can withdraw your Kiwi Saver (except for the $1,000 Government grant) for your first home if you have made at least the minimum regular contributions for at least three years. It cannot be for a rental property.
A: Yes, but they are very restricted. For a single person you have to be earning LESS than $80k per year. For a couple it's LESS than $135k per year. In Auckland your home must not cost more than $600k or $650k if it is brand new. You also need to have been in Kiwi Saver for at least 3 years. if you qualify so far, you can get $1k for yourself and your qualifying partner for every year you've been in Kiwi Saver up to a maximum of 5 years. If it's a brand new home it's $2k each per year up to 5 years.