Answers to common questions

Before you apply for a home loan you need to know:

  • the size of your deposit (or which asset you can use as equity),
  • identify how much you can borrow,
  • the lender you want to borrow from and
  • how your loan will be structured (fixed or floating, loan term, type of loan).

All of this is much easier when you work with an experienced mortgage advisor like Achiva.

The amount you can borrow from a bank or non-bank lender depends on factors like your income, number of dependents, expenditure, credit history and current debts. By working with Achiva you can quickly get a good idea of how much you could borrow. For starters, have a play with our repayment calculator. You can experiment with loan amounts to see how the repayments shape up.

Most lenders in NZ require a deposit of at least 20% of the property’s value. If you’re a first-home buyer or are building a new home, a smaller deposit might be possible. You might also qualify for home ownership help through Kāinga Ora; we know all about their First Home Grant, First Home Partner and First Home Loan opportunities. If you’re buying a property as an investment, the minimum deposit is usually 35%. For more clarity about deposits or help with Kāinga Ora assistance, talk to us.

The home loan market is competitive, so lenders are always trying to come up with offers that make them more attractive to borrowers. As mortgage advisers we have access to a wide range of lenders, so we can identify the most suitable options for you. We can also negotiate on your behalf, to get them to sharpen their pencil!

Loan structure needs to be customised to your situation and goals. Copying a friend or family member’s loan structure might not be the best approach for you. There are various types of loans designed to suit a range of purposes. Here are some common loan types:

  • Fixed Interest Rate: If you value repayment certainty, a fixed-rate mortgage serves as your anchor. Your interest rate remains consistent, allowing you to plan ahead without any surprises.
  • Variable Rate: Embrace flexibility with a variable-rate mortgage. Accelerate your loan payoff by making extra payments whenever you choose, without facing penalties. Your financial journey is at your own pace. Keep in mind, the variable rates tend to be higher than fixed rates.
  • Revolving Credit: Imagine a revolving credit mortgage as a trampoline. You can bounce between paying off your loan and tapping into it again as needed.
  • Interest Only: With an interest-only option, you pay only the interest. There’s a catch, when the interest-only term ends, you must start paying both principal and interest based on the remaining loan term. For example, if you have a 30-year loan term with 5 years of interest-only payments, the transition means you’ll pay both principal and interest over a 25-year term.
  • Offset: Experience the magic of an offset loan! This loan blends your savings and mortgage, creating a strategy to reduce interest costs.

Crafting your mortgage is like creating a masterpiece, blend fixed and variable loans to match your goals. Your adviser will help shape your loan to fit your financial goals.

There’s no clear answer to this question, because it depends on market conditions, future forecasts and your own circumstances. You need to consider short, medium and long term goals, your appetite for risk and when you might sell the home. The best approach to choosing a new fixed term is to sit down with us and evaluate each of the possibilities.

Refinancing could be worthwhile if it secures a lower interest rate, reduces loan term, consolidates debts or scores you a valuable incentive (e.g. cashback offer or home appliance). With our help you can evaluate potential savings and costs, and then make a decision that delivers the most benefits.

Mortgage advisers offer expert guidance and help you to plan ahead. They also give you access to multiple lenders. What’s more, their services cost you nothing, if you choose to go with one of the loan solutions they identify for you.

To apply for a residential home loan you will need:

  • Identification (driver license or passport)
  • Proof of your deposit
  • Summary of debts
  • Proof of income, such as bank statements, payslips, employment contract or financial statements (if you’re self-employed)
  • Proof of additional income (side gigs, rental, boarder, flatmates)
  • Expenditure report, achieved by analysing bank statements for the past three to six months
  • Rental appraisal
  • Other related documents.

10 reasons to work with a mortgage adviser:

  1. Personalised advice based on your financial position, goals and life stage
  2. A clear picture of how much you could borrow
  3. A wider choice of lenders
  4. Advice to help you choose the most suitable lender for you
  5. Straightforward explanations about loan types, interest rates, fees and terms
  6. Suggestions for how to structure your borrowing, so that it’s optimal for you
  7. Help with getting your application together
  8. Explanations of conditions that affect loan approval, so that you won’t get any surprises
  9. Management of the loan the process, right through to settlement
  10. Regular reviews, so that your loan is optimised for market conditions and your stage of life.

DISCLAIMER: This material is presented as a complimentary service by Achiva Financial Services Limited and is crafted based on information and sources that Achiva considers reliable. The content is intended for informational purposes exclusively, subject to potential changes, and should not replace prudent business judgment or professional guidance, which you should seek prior to making any decisions based on this material. Achiva cannot guarantee the content’s accuracy, the quality of these services or their appropriateness for your specific circumstances. In accordance with applicable laws, Achiva relinquishes liability or accountability to any individual for any direct or indirect losses or damages that may arise from actions or oversights by any party regarding this material.