How Do I Get a Mortgage?
A good place to start is your current bank’s website. Most banks have information about mortgages and ‘how much can I borrow’ calculators. Be careful when using the calculators, the amount they say that you will be able to borrow is likely to differ once all your personal circumstances are taken into account.
If you are after a competitive deal, and interest rates will be a big factor in your decision, you can start by checking out all the banks’ interest rates. The website www.interest.co.nz is great for this. Many banks also advertise products and specials on this website – so have a good look around.
Ringing your current bank or a mortgage broker is a good way to begin the process - outline your situation and see what they have to say. If you are happy to continue after these initial discussions it is a good idea to go and see them in person. Your current bank may be more then happy to lend you money to buy a house, but make sure you approach at least one other bank, this way you will know if you are getting a competitive mortgage product. Also you may be able to use this information to negotiate a better deal.
You will need to prepare a pack of information about yourself. It will include at a minimum - proof of identification and pay slips (or proof of income) for up to two years depending on your employment status (permanent, contractor, self employed etc).
There is a lot of paperwork involved in mortgage applications, so be prepared! You may be required to provide all sorts of information ranging from 3 months worth of transactional bank statements, to business accounts, and even proof of residency. And there will be very comprehensive forms to fill in, different ones for each bank. It can be a long and tiring process!
If you have unusual circumstances, a mortgage broker is probably the best way to go about getting a mortgage.As with most things – the more you shop around and negotiate, the better the deal you are going to get, and the more likely you are to find a mortgage that will suit you. So be prepared to do some hard work to get a good mortgage.