Finding the right property

To secure the right home loan, finding the right property is crucial.

When selecting your home, you need to consider many details: location, type of property (unit, townhouse, freestanding house), facilities (roads, public transport, schools, shops, etc.), and how much you can borrow.

Organize pre-approval for a home loan

Regardless of how much you intend to borrow, it’s worth securing a home loan pre-approval before starting the search for buying your first home. You will be given clear guidelines on your borrowing capacity by an official, written home loan pre-approval, allowing you to negotiate or bid with confidence at auction.

Financial factors

Many of the decisions you make about which property to buy will be personal. Still, before committing to your first home purchase, you will need to consider some serious financial considerations. Our local mortgage advisor, the Best Mortgage Brokers Auckland, could help you understand how your situation is related to each one.

  • Securing pre-approval home loan
  • Sourcing of your deposit
  • Purchasing within your limits
  • Comprehending interest rates
  • Charges, fees, and associated costs

Buy within your limits.

Being conservative can pay big dividends down the track with your property purchase. Your repayments are not only easily manageable, but you will accrue equity much faster. It will make it much earlier and easier for you to upgrade or move into property investment than if you had purchased at the edge of your limits, to begin with. It is going to be more comfortable with us, the Best mortgage brokers.

Budget to raise interest rates

It would help if you considered the possibility of interest rate changes when determining how much you should borrow to ensure you can continue to service your loan should rates rise. The general rule is that an increase of around two to three percent should be allowed.

The past several years have shown that the safest option may be a more considerable margin, up to five percent, but most lenders work around three percent.