PHOTO: Photo: RNZ / Alexander Robertson
Our expert topic today is buying a house and Bruce Patten, a director of Auckland mortgage brokerage, Loanmarket describes what to look out for, what options you have and answers questions about buying a house.
“The bank will look at what are you paying in rent plus your saving and is that … rough equivalent to what a mortgage payment would be?
Patten said if the Auckland mortgage brokerage went over that, then there would questions, “… especially understanding how expensive [the market] has got”.
Nearly 65 percent of home buyers did their research online, he said, adding that was a good way to start.
“Only one in 20 people would have a budget when they come to see us.”
Before signing the settlement papers, things to get ready would be a lawyer, and KiwiSaver funds which take about two weeks to be released.
To buy a $1 million house, “realistically” a first home buyer needs to have a minimum of 10 percent.
“If your income supports a borrowing on $900,000, then you can start there.”
He said if a person’s family or parent chipped in or became a guarantor for the loan, “they may become a co-borrower”.
A pre-approval from the bank comes with conditions.
Allow another $5000 for lawyer fees, building report, valuation, LIM report, he said.
READ MORE VIA RNZ
