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LouD 
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Joined: 11 January 2009
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 Topic: Welcome homeloans
Posted: 02 December 2010 at 8:14pm |
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I have just applied for one, I have put an offer on a house and applying for a welcome home loan as we dont have quite enough for a deposit.
What I wanted to know from those out there, whats the criteria like?? We meet all the income criteria from the online calculator etc and only have $1k worth of debt and no credit cards and no hire purchases etc.......
I dont want to get my hopes up, but I dont see any real reason why we wouldnt get a loan, so thought I would ask anyone out there who has applied for one and got it, or didnt and why??
TIA
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shadowfeet
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Joined: 03 December 2008
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Posted: 02 December 2010 at 8:26pm |
We got one, with more debt than you, but our house cost much less than the one you're applying for 
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minik8e
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Joined: 01 January 1900
Location: Taranaki
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Posted: 02 December 2010 at 10:04pm |
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My ex and I got ours nearly 3 years ago, when the criteria was pretty lax, but we had more debt than you, plus a credit card (with a $500 limit), and both had issues on our credit history (it was a requirement of the loan that we paid them off prior to drawing down the loan). They like to work on the basis that the loan repayments are usually no more than 40% of your gross income. They will also take into account any dependants that you have (which the online calculators don't).
Just remember the fees that you will need to pay for - there is a lender's mortgage protection insurance fee of 2% of the total amount you are borrowing (this is added on to the loan), you will also need to get a valuation (around $500-ish), lawyer's fees (approx $800-1,000) and your share of the rates. Housing NZ can also be very slow at getting their approvals back - once you are approved by the bank, everything (s&p agreement, valuation, application etc) gets sent to Housing NZ for approval. Oh, and there's your share of the deposit, if the house is over $200,000 (15% of the purchase price between $200,000 and whatever the price is....so if it's $220,000, then your deposit is 15% of $20,000).
Good luck though. We went through SBS and they were fantastic, although I'm not so keen on the advice that they are giving the ex in relation to our mortgage in recent history.
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LouD
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Joined: 11 January 2009
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Posted: 02 December 2010 at 10:26pm |
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Thanks Shadowfeet.
Thanks kate, I thought you had mentioned having one once upon a time.
We are going above the $200k by about $220, we have put offer in lower in the hope we can use extra to put an extra bedroom on as its only 2 bedrooms......but we have that deposit and enough to cover all those other legal bills etc,
I dont think the repayments will be more than 40%.......its only $30 more per week in what we are paying in rent (not including the rates and insurance) and since my boy is starting daycare soon I will be picking up more work soon so it wont be too much of a jump from where we are.
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amme_eilyk
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Location: Feilding
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Posted: 03 December 2010 at 12:58pm |
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they will also want you to put any money you have in savings into the house before they lend. i.e. if you have $10k in savings they may lend you 7k less than if you have nothing.
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LouD
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Posted: 03 December 2010 at 2:04pm |
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We have some in savings but that will pretty much cover the 15% over the 200k mark and the legal fees
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Welcome homeloans
