Purchasing a house is a prospect that inspires fear in many people. Many people fear that their application will not be approved, and you may not know how much can you borrow from them. They may fear that they might not be able to repay the interest on the house mortgage. They might fear that they cannot get enough money to pay the deposit for a mortgage.
If one is a first time buyer, it is important to know all the avenues that one can take to obtain a deposit. Some banks request a deposit for a mortgage of 5% of the asking price. Other banks require a deposit of 20% before they will approve a home loan.
One can do several things to obtain a deposit; first of all, one can save as much money as possible over time. Many first time buyers however, don't have that much money saved. If one has contributed to one's Kiwisaver fund, one can get access to the saved money for the deposit and may even qualify for a New Zealand housing subsidy of $1000 for each year that one has contributed towards the fund.
This means that if one has contributed towards a Kiwisaver fund for a period of five years for example, one can be eligible for a subsidy of $5000. The banks also accept a deposit that has been provided by a third party such as one's parents. They don't even have to pay a cent towards the deposit; they can provide a guarantee using their own home as security which will be accepted in lieu of a deposit.
One can request a structured long term loan that will assist with the deposit. One can even visit a bank that doesn't require a 20% deposit. There is even a facility where a person can obtain a gift deposit from a third party such as one's parents.
The most a bank can ask for in a deposit is 20% of the total of the loan which could be costly. Some banks won't be as stringent and will ask for a 5% deposit on the loan. What is not so clear is that one has many avenues to explore.
If a retired couple is over the age of 60 and they require a bit of spending money to go traveling, they can obtain a reverse mortgage on the house that they have bought and paid for. The house is placed as a security and the bank will provide the mortgage that matches the value of the house. The only time that this mortgage needs to be repaid is either when the couple enters a retirement or nursing home, or when they die.
As a retired person, one can obtain a reverse mortgage on a paid up home. The applicant would need to be over the age of 60 years old. The money would help the retired person to live out his or her days in ease and comfort and it would only be repayable upon death or when one enters a home on a long term basis. The first step is always to contact a financial mortgage and insurance adviser to find out how much can you borrow and how to go about the process.
If one is a first time buyer, it is important to know all the avenues that one can take to obtain a deposit. Some banks request a deposit for a mortgage of 5% of the asking price. Other banks require a deposit of 20% before they will approve a home loan.
One can do several things to obtain a deposit; first of all, one can save as much money as possible over time. Many first time buyers however, don't have that much money saved. If one has contributed to one's Kiwisaver fund, one can get access to the saved money for the deposit and may even qualify for a New Zealand housing subsidy of $1000 for each year that one has contributed towards the fund.
This means that if one has contributed towards a Kiwisaver fund for a period of five years for example, one can be eligible for a subsidy of $5000. The banks also accept a deposit that has been provided by a third party such as one's parents. They don't even have to pay a cent towards the deposit; they can provide a guarantee using their own home as security which will be accepted in lieu of a deposit.
One can request a structured long term loan that will assist with the deposit. One can even visit a bank that doesn't require a 20% deposit. There is even a facility where a person can obtain a gift deposit from a third party such as one's parents.
The most a bank can ask for in a deposit is 20% of the total of the loan which could be costly. Some banks won't be as stringent and will ask for a 5% deposit on the loan. What is not so clear is that one has many avenues to explore.
If a retired couple is over the age of 60 and they require a bit of spending money to go traveling, they can obtain a reverse mortgage on the house that they have bought and paid for. The house is placed as a security and the bank will provide the mortgage that matches the value of the house. The only time that this mortgage needs to be repaid is either when the couple enters a retirement or nursing home, or when they die.
As a retired person, one can obtain a reverse mortgage on a paid up home. The applicant would need to be over the age of 60 years old. The money would help the retired person to live out his or her days in ease and comfort and it would only be repayable upon death or when one enters a home on a long term basis. The first step is always to contact a financial mortgage and insurance adviser to find out how much can you borrow and how to go about the process.
About the Author:
If you have been asking, how much can I borrow when buying a home, visit our web pages to get the answers you require. To find out how Thomson Jones New Zealand can help you with your mortgage and insurance needs, click the links on our homepage now.
No comments:
Post a Comment