Why Mortgage Mantra

Why use mortgage mantra or any other broker and not your own bank or another bank?

·         BANK SELLS ONLY 1 PRODUCT – THEIR OWN

·         IF YOUR APPLICATION DOES NOT FIT THE BOX – DECLINED (NO REASON GIVEN IN MANY CASES)

·         IF YOUR APPLICATION IS APPROVED – NOT MUCH SCOPE ON NEGOTIATIONS OF RATES & FEES IN MOST CASES

·         YOU MAY BE CHARGED APPLICATION FEE, LOW EQUITY MARGIN

·         YOU HAVE TO TAKE TIME OFF TO GO TO THE BANK AT LEAST ONCE

·         IN MANY CASES YOU DO NOT EXPLAIN YOUR SITUATION FULLY

·         BANK MAY NOT BE FLEXIBLE – DO NOT FIT THE BOX SCENARIO

·         BANKER MAY BE NEW TO ROLE AND APPLICATION IS DECLINED

WE HAVE ACCESS TO DIFFERENT LENDERS WITH DIFFERENT SHAPED BOXES TO MEET YOUR APPLICATION NEEDS

·         WE COME TO YOU AND SPEAK YOUR LANGUAGE-UNDERSTAND YOU AND YOUR SITUATION BETTER AND PRESENT THE APPLICATION DIFFERENTLY TO ACHIEVE AN APPROVAL THAT MATCHES YOUR NEEDS.

·         WE ARE ABLE TO MATCH THE APPLICATION WITH A LENDER

·         WE SEARCH FOR THE MOST VIABLE OPTION FOR YOU IN CONSULTATION WITH YOU

·         WE GUIDE YOU THROUGH THE BUYING PROCESS-EVERY STEP WHEREAS THE BANK WILL NOT BE AS INTERESTED AS WE ARE

·         WE ARE AVAILABLE 7 DAYS A WEEK TO ANSWER YOUR QUERIES OR TO VISIT YOU AT YOUR PLACE

·         IN CONSULTATION WITH YOU AND AFTER WORKING ON YOUR BUDGET, WE WILL PUT THE APPROPRIATE LOAN STRUCTURE IN PLACE FOR YOU.

·         IN MOST APPLICATIONS, WE DO NOT CHARGE YOU A FEE. IF THERE IS A FEE INVOLVED, THIS IS DISCUSSED AND AGREED ON BEFORE WE START WORK ON YOUR APPLICATION.

Why Refinance

WHY REFINANCE?

•    CHANGING FROM A NON-BANK TO A BANK OR FROM ONE BANK TO ANOTHER-PERSONAL SERVICE,POLICY GUIDELINES ARE DIFFERENT
•    UNHAPPY WITH CURRENT PROVIDER FOR VARIOUS REASONS INCLUDING:
•    BETTER INTEREST RATE-PAYING HIGHER RATES CURRENTLY
•    BETTER OVERALL LOAN STRUCTURE (FLEXIBILITY TO CHOOSE BETWEEN FIXED & VARIABLE RATE LOANS)
•    ABILITY TO MAKE SOME EXTRA REPAYMENTS
•    BUYING ANOTHER PROPERTY
•    HELPING A FAMILY MEMBER BUY A PROPERTY
•    BORROWING ADDITIONALLY TO – RENOVATE/UPGRADE/EXPAND/BUILD/IMPROVE
•    DEBT CONSOLIDATION – CAR LOAN,C/C,HP,PERSONAL LOAN,OTHERS

THERE ARE A FEW OTHER REASONS. WHEN CONSOLIDATING DEBT –WHETHER REFINANCING OR NOT- NEED 6 MONTHS REPAYMENT HISTORY OF LOANS BEING CONSOLIDATED/REFINANCED

SHOULD HAVE SUFFICIENT EQUITY TO BORROW ADDITIONALLY

SHOULD HAVE ENOUGH INCOME TO SERVICE ADDITIONAL BORROWINGS

IS PROPERTY ACCEPTABLE TO NEW LENDER?   

COSTS INVOLVED: EARLY REPAYMENT FEES IF ON FIXED RATE TERM OR EARLY EXIT FEES IF WITH A NON-BANK LENDER (CHECK LOAN TERMS), ADMIN FEES, VALUATION, SOLICITOR, and NEW SET-UP OF
AP ‘S, LENDER’S FEES, LOW EQUITY PREMIUM IF LVR OVER 80% 

SOME OF THE COSTS ARE EXPLAINED

Why Insurance

Why personal life insurance?

10 reasons to get life insurance...and hold on to it

People insure their car, furniture, luggage,travel and even their pets - but often neglect to insure their hard-earned lifestyle.  Left uninsured, which would be the greatest loss?

Purse strings may be tight today, but you'll still want to keep your long-term financial goals on track.  We all like to think “it’s never going to happen to me”, but accidents and illness can happen. And some of us die too soon. Life can be unpredictable, which is why many of us decide to protect ourselves with some form of life insurance and disability. 

Here's why a combination of life, disability and critical illness cover could be your best protection:

1. At some point, there’s a good chance you’ll be too sick to work over an extended period of time.2 out of 5 people could be unable to work for six months or more because of sickness or accident.¹
2. ACC can’t always help you. Contrary to popular belief, you can’t rely on accident compensation in all situations. And you’re more likely to be disabled by illness than by accident – 40% of disabilities are due to disease or illness while only 34% are due to accident or injury.² Insurance for illness and injury can help when ACC isn’t able to.
3. Sickness is more likely to leave you with a long-term disability. Of disabilities lasting six months or more, only one in 20 is related to accidental causes.³ Insurance can help keep your household running while you recover. It can also fund rehabilitation and retraining to speed your return to work.
4. Many people die before the age of 65. Most of us think we’ll live to a ripe old age, but one in six males and one in nine females over the age of 30 will die before they reach 65.⁴ Life Cover pays a lump sum if you die, to look after the people you leave behind.
5. You’re a key income earner for your family. How long could your family survive without the income you generate? Insurance, such as Family Protection, provides an ongoing monthly income.
6. You have a mortgage. Who would pay the mortgage if your income stopped, and how long could they keep it up? An insurance claim could be used to clear or reduce an existing mortgage.
7. Recovery is faster without financial stress. Worrying about money doesn’t help recovery after an illness or injury. Insurance eases your concerns, so that you can relax and get better.
8. Of cancer patients, 52% of males and 59% of females will still be alive five years later.⁵ Treatment for cancer often makes it hard or impossible for people to work. Living Assurance protects your lifestyle while you recover.
9. If you have a stroke, survival could mean ongoing disability. A study of the population of Auckland reveals that while the number of deaths after stroke has declined, there has been a significant increase in the number of people with an impaired level of consciousness and mobility following stroke.⁶A lump-sum payment from Total Permanent Disablement insurance is a huge help if this happens.
10.   Raising a family as a solo parent is hard work. If you died suddenly, your partner or spouse would have the task of raising the children without your help. Life Cover can take care of your family financially, making it easier to maintain the lifestyle they’re used to.

Life Cover personal & business

Life Cover

Life Cover pays out in the event of your death – either as a lump sum or as a monthly benefit. This type of cover can support the loved ones you leave behind, and if you're a business owner or shareholder, it can also secure the business' long-term survival.

Leaving a lump sum to the people who matter most
If your family needs your income to survive, Personal Life Cover can help them to cope financially without you.

Leaving a lump sum to take care of your business partners
Businesses can be at risk when a partner dies. Business – Life Cover can make it easy for surviving partners to take over your share and keep the business running.

Creating an ongoing monthly income for your family
If you’d rather leave your family with an ongoing monthly benefit, instead of one big lump sum, you may prefer Family Protection.

Accidental Death – another option
For people who aren’t eligible for regular Life Cover, or simply need a more affordable option, Accidental Death insurance could be the answer.

Eligibility to qualify for Home Loan

WHO QUALIFIES FOR A HOME LOAN IN NEW ZEALAND ?
•    NZ RESIDENT / NZ CITIZEN / AUSTRALIAN CITIZEN
•    THESE 3 CATEGORIES EASILY QUALIFY FOR 95% BORROWING – BORROWING WITH ONLY A 5% DEPOSITFOR A FIRST HOME
•    NZ WORK PERMIT HOLDERS QUALIFY – DIFFERENT CRITERIA
•    NON – RESIDENTS QUALIFY – DIFFERENT CRITERIA
•    IF YOU ARE ON A WORK PERMIT OR ARE A VISITOR TO NZ-ASK ME HOW
•    APPLICANT SHOULD BE AT LEAST 18 YEARS OF AGE
•    YOUNGER APPLICANTS QUALIFY FOR UP TO A 30 YEAR TERM – I PERSONALLY NO LONGER RECOMMEND A 30 YEAR TERM
•    APPLICANTS OLDER THAN 60 NORMALLY GET A LIMITED TERM-THIS CAN DIFFER WITH DIFFERENT LENDERS
•    APPLICATIONS CAN BE SOLE APPLICANT / SOLE INDIVIDUAL OR MULTIPLE APPLICANTS( JOINT /FAMILY)
•    APPLICANT/S SHOULD HAVE SOME FORM OF VERIFIABLE INCOME
•    FOR 95% LENDING – WORK HISTORY MUST BE STEADY – MINIMUM 1 YEAR IN CURRENT ROLE FOR MOST LENDERS
•    SOME LENDERS STIPULATE MINIMUM ANNUAL INCOME FOR 95%
•    BENEFICIARIES ALSO QUALIFY FOR HOME LOANS
•    SOLO MUMS/SOLO PARENTS WITH AN INCOME ALSO QUALIFY
•    LENDERS PREFER INCOME DERIVED IN NZ
•    SOME LENDERS WILL CONSIDER OVERSEAS INCOME – CRITERIA IS DIFFERENT FOR THESE APPLICATIONS
•    AT 95% LVR LENDERS NEED A CLEAN CREDIT FILE WITH LITTLE OR NO SHORT TERM DEBTS(STUDENT LOAN IS OKAY WITH SOME)
•    SQUEAKY CLEAN ACCOUNT CONDUCT IS A MUST
•    NO UNAUTHORISED OVERDRAFTS OR MISSED DD/AP

Types of Loan

WE ARRANGE MORTGAGES & PERSONAL RISK INSURANCE

Types of loans arranged: ANYWHERE IN NZ

·        PRIMARILY HOME LOANS –ANYWHERE IN NZ

·        FOR FIRST HOME BUYERS – BUYING A DWELLING WITH SAVED DEPOSIT – (SAVED DEPOSIT IS MINIMUM 5%)

·        BUYING YOUR FIRST HOME OR NEXT HOME WITH A GIFTED DEPOSIT – MORE THAN 5% DEPOSIT REQUIRED IN MOST CASES OF FIRST HOME PURCHASE

·        SHARED EQUITY POSSIBLE FOR FIRST HOME PURCHASE IF NO DEPOSIT CAN BE CONTRIBUTED -CALL FOR DETAILS

·        SUBSEQUENT PROPERTY PURCHASES – CAN USE EQUITY IN EXISTING PROPERTY OR A DEPOSIT OR A GIFT OR COMBINATION OF ALL

·        REFINANCE FROM CURRENT LENDER TO A NEW LENDER IF UNHAPPY WITH CURRENT LENDER

·        TOO MANY EXTERNAL DEBTS -HELP CONSOLIDATE OTHER DEBTS WITH HOME LOAN TO EASE CASH-FLOW & SAVE ON INTEREST COSTS

·         IF YOU HAVE A SURPLUS IN YOUR BUDGETS. I CAN HELP

           RE-STRUCTURE MORTGAGE TO PAY OFF EARLY.

           MAY NOT BE ABLE TO PAY OFF MORTGAGE EARLIER IF    

           THERE IS NO SURPLUS.

·        HOME LOANS FOR SELF-EMPLOYED-MUST HAVE AT LEAST 1 YEAR TRADING HISTORY AND A SAVED DEPOSIT

·        SECTION PURCHASE – NEED AT LEAST 25% DEPOSIT

·        CONSTRUCTION LOANS – PROGRESSIVE DRAWDOWN BASED ON VALUATION REPORTS

·        CAN ASSIST IN TAKEOVER OF INCOMPLETE BUILDING PROJECTS

·        LOAN ARREARS – MAY BE ABLE TO ASSIST-CALL FOR DETAILS

·        COMMERCIAL PROPERTY PURCHASE – ANYWHERE IN NZ

·        BUSINESS FUNDING – EQUIPMENT FINANCE/BUSINESS PURCHASE/WORKING CAPITAL NEEDS

·        PERSONAL LOANS – SECURED / UNSECURED

LOANS OUTSIDE NORMAL LENDING CRITERIA

LOANS TO CREDIT IMPAIRED – MAX LVR 60 – 70%

ANY OTHER LOANS - PLEASE TALK TO US

WIDE RANGE OF PERSONAL & BUSINESS INSURANCE

I COME TO YOUR DOOR STEP

AAPKE KADMO TAK AATHE HAIN

Turning Declined to Approved

 APPLICATION BEING DECLINED-HOW TO ADDRESS THESE ISSUES

·          AGE FACTORS- UNDER AGED (BELOW 18) OR TOO OLD TO BE ABLE TO SERVICE A 25 YEAR TERM BASED ON CURRENT PROFESSION…LENDERS SHOULD NORMALLY NOT DISCRIMINATE AGAINST OLDER AGE

ENSURE THE APPLICANT IS AT LEAST 18 AND AT THAT AGE YOU HAVE STRONG REASONS TO INCLUDE THE YOUNG APPLICANT.

AT A HIGHER AGE,ENSURE THE APPLICANT HAS A STRONG WORK HISTORY, NO OTHER BORROWINGS AND RELIABLE INCOME GOING FORWARD

• NON-RESIDENT OR OTHER VISA –

HAVE A SUBSTANTIAL DEPOSIT ESPECIALLY IF THE VISA IS NON-WORK RELATED

·          DEPOSIT MAY NOT BE SAVED FOR REQUIRED PERIOD-LUMP SUM/ONLY GIFTED DEPOSIT & NO EVIDENCE OF ANY SAVINGS FROM APPLICANT

KEEP DEPOSITING MONEY INTO A DEDICATED ACCOUNT REGULARLY.

IF DEPOSIT IS GIFTED,SHOULD HAVE NO EXTERNAL DEBTS, AND SHOULD HAVE GOOD ACCOUNT CONDUCT, GOOD WORK HISTORY, CLEAN CREDIT

·          SOURCE OF DEPOSIT NOT EXPLAINED SATISFACTORILY-NO PAPER TRAIL

FILE STATEMENTS REGULARLY,IF OVERSEAS SOURCE OF FUNDS – GET PAPERWORK ORGANISED IN ADVANCE,IF GIFTED – GET A GIFT DEED COMPLETED

·          FREQUENT CHANGE OF EMPLOYMENT W/OUT VALID REASONS

TRY NOT TO CHANGE JOBS – ESPECIALLY CHANGE OF CAREER-UNLESS YOU ARE GOING BACK TO A CAREER YOU HAVE BEEN IN EARLIER

·          FREQUENT CHANGE OF RESIDENTIAL ADDRESS

YOU NEED REALLY SOUND REASONS FOR THIS – NOT JUST UNHAPPY WITH THE LANDLORD OR THE NEIGHBORS

·          INCOME IS EXTREMELY IRREGULAR- IRREGULAR DEPOSITS TO A/C

ENSURE ALL INCOME COMES INTO YOUR ACCOUNT REGULARLY-EVEN IF YOU ARE PAID BY CASH BY YOUR EMPLOYER

·          SOURCE OF INCOME NOT CONFIRMED OR UNACCEPTABLE TO LENDER

ASK EMPLOYER FOR A LETTER CONFIRMING INCOME,ASK FOR A PAY SLIP

• IN CURRENT EMPLOYMENT ROLE FOR BRIEF PERIOD WITH NO PRIOR WORK HISTORY EITHER IN NZ OR OVERSEAS

YOU NEED TO BE IN A VERY GOOD PROFESSION WITH GOOD SKILL SETS AND GOOD EARNINGS,NO BORROWINGS AND A DEPOSIT THAT HAS BEEN SAVED

·          INSUFFICIENT INCOME FOR AMOUNT REQUIRED AS ON APPLICATION

DO YOUR HOME-WORK FIRST-CAN YOU AFFORD THE REPAYMENTS FOR THE LOAN THAT YOU ARE SEEKING…ARE THERE OTHER BORROWINGS THAT ARE AFFECTING YOUR REPAYING ABILITY?

·          TOO MANY EXTERNAL BORROWINGS – HP’S, CREDIT CARDS/S, PERSONAL LOAN/S, DEFERRED INSTALMENT PLANS…

YOU HAVE BEEN LIVING IN A WORLD OF DREAMS.DO NOT BORROW UNLESS YOU ABSOLUTELY NEED SOMETHING…..WANTS VERSUS NEEDS? ANALYSE. BORROW SMALLER AMOUNTS OVER SHORTER PERIODS

·          BANK ACCOUNT CONDUCT NOT ACCEPTABLE (REFER TIPS OF LAST WEEK)

·          A/P’S & D/D’S REVERSED WITHOUT STRONG REASONING

YOU NEED TO MONITOR YOUR BANK TRANSACTIONS & BALANCES DAILY- ENSURE A/P’S & D/D’S ARE LOADED FOR DATES WHEN YOU HAVE SUFFICIENT BALANCE IN THE ACCOUNT-VERY OFTEN THESE DATES MISS SALARY DATES BY A DAY OR TWO-ASK FOR A REVISED PAYMENT DATE

·          INFO DISCLOSED IS INCORRECT / INCOMPLETE – APPLICATION COULD EARLIER HAVE GONE TO SAME LENDER WITH DIFFERING INFORMATION.

·          NON-DISCLOSURE OF INFO IS QUITE SERIOUSLY VIEWED

·          BAYCORP HISTORY NOT GOOD ENOUGH-

DO NOT GUARANTEE/BORROWUNLESS NECESSARY-IF YOU ARE AWARE OF A DEFAULT,DECLARE IN ADVANCE, HAVE GOOD REASONS FOR THE DEFAULT

• INSUFFICIENT TRADING PERIOD FOR SELF-EMPLOYED-HIGHER DEPOSIT

• WRONGLY ASSESSED BY LENDER-POINT OUT ERRORS IN ASSESMENT AND USE THE SERVICES OF AN EXPERIENCED MORTGAGE ADVISOR – THINK MORTGAGE MANTRA

• PROPERTY NOT ACCEPTABLE TO LENDER – LISTEN TO LENDER AND QUERY REASONS – LENDER MAY BE CORRECT AND SAVING YOU FROM A POTENTIAL SITUATION

• IF REFINANCING – HAS MISSED REPAYMENTS ON HOME LOAN TO PREVIOUS LENDER IN THE LAST 6 – 12 MONTHS

WHY HAVE YOU MISSED PAYMENTS? YOU KNOW BEST.EXPLAIN REASONS AND BACK UP WITH DOCUMENTED EVIDENCE

09.08.2010