Your home loan is a large and often long-term financial commitment so it makes sense to get it right first time. What’s right for you will depend on a range of factors including the size of the loan you require, the property you intend to purchase, the deposit you have and your lifestyle.Your Loan Market mortgage broker can help you compare rates, loan features, fees and charges to help you secure the right home loan for your needs.
Loan Market Home Loans
Your home loan is the biggest financial commitment you will make in your life so it’s important to get it right. Your Loan Market mortgage broker will assess your situation and help you select the right home loan based on a range of factors including the size of the loan you require, the property you intend to purchase, the deposit you have and your lifestyle.
Included in your personal assessment is a fast and accurate comparison of suitable home loans from the huge range available from major banks and specialist lenders.
Standard variable rate home loans – floating rate home loans
Standard variable rate home loans are gaining in popularity in New Zealand because of falling interest rates and their flexibility. The interest rate applied to a standard variable rate loan fluctuates over time depending on the official Reserve Bank interest rate and your bank’s interest rate settings.
Fixed rate home loans
Fixed rate home loans are where the interest rate and loan repayments are fixed for a set term, usually between six months and 5 years, and still form the majority of mortgages in New Zealand. If you require certainty of repayments, a fixed rate loan will suit you. At the end of a fixed term the loan will roll over into a standard variable rate home loan, unless you have negotiated something different with your bank.
No deposit home loans – 100% home loans – low deposit home loans
Most loans require a deposit of five per cent or more. No deposit or 100 per cent home loans, however, remove the need to save for a deposit by providing you with 100 per cent of the purchase price of the property. Although no deposit loans and most low deposit loans are unavailable in the current economic climate, when they do make a return, first home buyers and people re-entering the property market will find this loan useful.
Combination or split home loans
Combination or split home loans enable you to take part of your loan as a variable rate loan and the remaining portion as a fixed rate loan. Use this loan to take advantage of the flexibility of variable rate loans and the certainty of fixed rate loans. Combination/split loans are ideal if you want some repayment certainty but the also the option to make additional repayments to reduce your loan balance.
Line of credit – revolving credit
A line of credit or revolving credit home loan is a loan facility secured by a residential property, which allows you to withdraw funds up to a set limit at any time. Generally a line of credit is an interest-only loan, and in some cases you may be able to capitalise the interest payments. Investors often use this type of loan, particularly when expanding a property portfolio. Interest rates are usually higher than for a standard variable home loan.
Low documentation and no documentation loans
Low Documentation, or Low Doc, home loans require very little or no income documentation to secure approval. The less documentation you provide, the higher the interest rate on the loan is likely to be. They are ideal for self-employed borrowers.
Non-conforming home loans are designed to meet the needs of borrowers who do not meet the criteria of mainstream lenders, including those who are credit-impaired, older borrowers, new residents and seasonal or casual workers.
Want to match your personal situation to the best home loan?
For a personal loan assessment that will best match your situation to the home loans available on the market, talk to your local mortgage broker, OR call us at any time on 0508 722 205 (+64 9 526 0122).