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  1. #1
    Join Date
    May 2014
    Location
    New Zealand
    Posts
    1

    Default Mortgage advice

    hey there fellow forum people. Has anyone out there been succesful in securing a mortgage on a resident class visa with just a 10 percent deposit?
    look forward to hearing from you

  2. #2
    Join Date
    Feb 2012
    Location
    UK > Silverwood, Whitby, NZ
    Posts
    288

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    Banks have very strict criteria set for them by the Government. 20 % deposit is now the norm. Banks are allowed to lend some money at lower deposits, but this is capped AND they are begin super cautious. In this case, it doesn't matter whether you have residency, permanent residency, or are a citizen.

  3. #3
    Join Date
    Aug 2009
    Location
    Auckland
    Posts
    360

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    We were approved for a 10% mortgage through our broker as we have assets like the equity in our UK home. They are in short supply and as a result attract a higher interest than those with a 20% deposit so we took the hit on savings and stumped up the higher deposit.

    Simon

  4. #4
    Join Date
    Jan 2013
    Location
    Vermont, USA --> Wellington
    Posts
    159

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    The 20% deposit policy has been an enormous failure, and there was a recently a decision to lift the restrictions. The truth is, banks are happy to lend on 10% deposit, or even less, but regulations at the moment say they can't. That's all changing in the near future. I could have sworn it was sometime this year, actually.

    Also, look at KiwiBank. If you're income eligible, you can get a mortgage at 10% right now, and it's not difficult. I know many people who have done it.

    Edit: Found the link. http://www.stuff.co.nz/business/mone...lending-limits
    Last edited by A.C. Slater; 20th May 2014 at 11:46 PM. Reason: Found the link

  5. #5
    Join Date
    Jun 2008
    Location
    S'pore-2-AKL again
    Posts
    877

    Default

    I suggest a mortgage broker to help you assess your ability to obtain a loan. Shop around or get a recommendation. The restrictions on LVR have put a brake on low-deposit lendings but not all are treated as equal. Banks have the discretion to determine who they want to select for loans and they usually impose some penalties like higher interests or additional insurance to offset the risks.

  6. #6
    Join Date
    Jan 2012
    Location
    Takapuna
    Posts
    464

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    Every lender I have spoken to has been happy to take 100k as 10% down. There is no regulation to say they can't loan at 10% only a regulation to say the percentage they can lend at that rate. There is also the Welcome Home Loan for those with lower incomes and housing needs.

  7. #7
    Join Date
    Jan 2013
    Location
    Vermont, USA --> Wellington
    Posts
    159

    Default

    Quote Originally Posted by G-Mo View Post
    Every lender I have spoken to has been happy to take 100k as 10% down.
    I think if you've got $100k kicking around and you're shopping for $1M houses, a 20% deposit isn't exactly a huge concern.

  8. #8
    Join Date
    May 2009
    Location
    Blenheim
    Posts
    1,545

    Default

    Why not? You would still need to repay the other 900k, and if those 'kicking' 100k are not backed up by an income to do so it is no difference in repaying 900k or 300k, is it? Every case is different, of course, but I sometimes wonder about the amount of debt people are willing to get into without actually thinking about rising interest, or, in the case of some of the people coming from other countries, the fact that they might not like it here after all (and reading some of the posts it seems that a lot of people are buying a house very shortly after they arrive, without proper knowledge of the market, the area, the things to look out for)- and when they then find themselves in the situation that they need or want to sell, they realise that they can't, at least not for the prize they bought.
    I am probably old- fashioned and brought up differently...., and it is, of course, only my personal opinion.

  9. #9
    Join Date
    Jun 2008
    Location
    UK to USA to Waikato, NZ
    Posts
    1,380

    Default

    We did 5% down with the house we just sold, but we had to put 20% down on our current construction/land loan. Residency was fine, just had to show our visas. I would also use a mortgage broker.

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