Home Loan

hen applying for a mortgage you’ll have the option to choose from a variable rate, a fixed rate or a combination of the two, known as a split rate. With a variable mortgage, interest rates are subject to change. They could go up or down depending on a variety of factors, so might not be the best choice if you’re looking for ongoing stability. It’s important to note that variable rates offer more flexibility. They allow you to top up, extend or pay extra off your mortgage without having to incur any penalties.

Before being able to make an offer on a property, you’ll need approval in principle (AIP). This is a letter from a lender indicating the amount they could lend you, based on the information you provide. However, having AIP doesn’t mean that you have mortgage approval and it’s not legally binding.It’s best to get AIP early on in your property journey, as estate agents will look for this as proof that you can afford to purchase a property. It usually lasts six months but it can be extended if you haven’t found the property you wish to purchase within that time frame.

You can still apply for a mortgage if you have other loans, but having a clean financial slate can help. Having no other loans means you have more income available to put towards your mortgage repayments, thus enhancing your affordability.

If you do have other loans or a high credit card balance, this can reduce the amount we can lend. In some cases, having outstanding debt can be the tipping point causing you to fail affordability for a mortgage.

A dependency on short-term debt such as credit cards and overdrafts can also cause concern. .

Cashback mortgages provide new homeowners with a lump sum, which can go towards furniture, decorating or paying legal fees.

Cashback mortgages have become increasingly popular in recent years, The popular incentive may provide short-term financial relief but can prove costly in the long run.You should always consider the interest rate and overall cost of credit over the lifetime of the loan. Often, we offer the best cashback mortgages with low interest rates,

It should be noted that even if you receive a cashback offer from your lender, you can still switch mortgage provider at any stage.

At CEU we don’t offer an offset mortgage. The key to an effective loan structure is putting your savings and income into an account that helps reduce your daily interest costs, we call this channelling. Get in touch with one of local consultants to learn more..

A home loan pre-approval is a conditional approval that we can lend you a certain amount of money, provided the property you purchase meets NZHL’s home loan criteria.

It’s a good idea to ask us for a home loan pre-approval before you start house hunting. It will help you determine how much you can borrow and to give you some bargaining power when negotiating a purchase price..