Improve your chances for approval

As restrictions on mortgage approvals continue, Dean McGuigan from Golden Homes puts home finance under the microscope with valuable advice on how to secure a home loan.

Tightening loan-to-value ratios, changes to the CCCFA (Credit Contracts and Consumer Finance Act) requiring banks to tighten up on lending, and KiwiSaver balances affected by stock market turbulence all make for a grim picture; so we are told. But what does all this mean?

Perhaps it’s not all doom, gloom and scary words that you need to understand fully. Rest assured, you don’t need to be able to decipher all the jargon like you are a leading economist.

What you need is someone who can do the understanding for you, deal with all of the banks and can ultimately get you the best mortgage approval based on your individual financial circumstances.

Each bank has its own set of rules that sit underneath the main lending rules. So, while some banks approve based on their own set of criteria, the bank right next door may have slightly different rules. A slight variance in lending criteria could be the difference between your loan being declined or approved.

I continue to see mortgage brokers successfully getting mortgages approved after the customer’s usual bank has initially said “no” to them.

Mortgage brokers shop around to not only get an approval, but also to get the best deal for the client.

Sometimes, where the broker might not immediately get an approval, they get recommendations from the banks about what the client can do in order to gain the approval.

This might take a couple of months for the client to undergo. However, the earlier the client engages with a broker and follows their advice, the sooner the approval is given.

The sooner you get an approval, the sooner you stop paying rent, and the sooner you own your own home!

If you are looking for your first home or your second, my recommendation would be to start the process and have a conversation with a mortgage broker. You might be surprised with an approval, and if not immediately, you will receive instructions and recommendations on how to move forward by putting things in order… to get that important approval.

0800 22 22 36 | goldenhomes.co.nz