welcome home loans
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Topic: welcome home loans
Posted By: blossombaby
Subject: welcome home loans
Date Posted: 24 March 2010 at 8:38pm
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hey guys,
we have just been gifted a amount of $$ that we have relised will be enough for us to get a house through welcome home loans, however we have never been down that sort of road before!!! anyone know where 2 start .. what do we do?? and has anyone got theirs through them .. is there anything we should know, we are so excited as least we know we are spending the $$ wisely and have somewhere secure, warm etc for bubs! |
Replies:
Posted By: RinTinTin
Date Posted: 24 March 2010 at 9:14pm
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http://www.welcomehomefirststeps.co.nz/ - http://www.welcomehomefirststeps.co.nz/ This site is a step by step guide on how to get through the process and they offer a free course. Good luck! Apparently you'll need it. DP was just telling me that these guys have only ever given out something like 7 loans in NZ...EVER. And they also require you to prove savings, so being gifted a deposit won't help, you'll have to put it into savings for 6 monhs and show you can save it. And then if that is the case, you're better off getting a loan through Kiwibank. Sorry if I burst your bubble...not my intention. Just don't count on these guys and be prepared to look elsewhere for a home loan. |
Posted By: minik8e
Date Posted: 24 March 2010 at 9:44pm
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Carin...don't take this the wrong way, but your DP needs to get his facts correct. The reason I say that is because WE have a Welcome Home Loan (and have had for over 2 years now), and I know of over 7 people in Taranaki alone who have them also. I think there may be a couple of other people here on OB who have one as well. Not only that, savings has nothing to do with it - we had none at all, and we went for 100% lending. We ALSO both had glitches on our credit history and other debts. Hello $205k mortgage and home ownership. They also accept gifted deposits quite happily - in fact they explicitly state it on their website.
We went through a mortgage broker for our loan, and he approached various lenders. We ended up with SBS, and they are fantastic. Even when we refinance off the Welcome Home Loan, we are likely to stay with SBS. There were a few conditions to the loan - you need a registered valuation (approx $500), you pay a low equity fee, which goes to Housing NZ as they underwrite the borrowing (basically they guarantee it) - this is approx 1% of the loan, and is added on to your mortgage. They prefer you to have no other debt, or low debt, but mostly they look at your ability to service. Sure, if you have a savings history it will count in your favour! But it's not essential. We had unpaid accounts with Baycorp (long story - we didn't even know they were there until SBS did a credit check) and we had to pay them in full before we could get our final acceptance. They also require a copy of the sales and purchase agreement, your last 3 months bank statements and confirmation of your income. Back when we got our mortgage, it was a little less strict than what it is now in relation to the payment to income ratio, but YOU need to be realistic about what you can afford. Remember the other charges you need to pay - insurance (you HAVE to have house insurance as a term of the mortgage), lawyers fees (approx $1000), rates, the valuation fee, money for a LIM report (some people would say don't bother with one, but unless you know what you are looking for in Council reports, I would suggest it's better to get one) which is usually $100-200, and any moving costs - these are all payable by you and are unable to be added to the loan. If you think home ownership is definitely the way you want to go, get in touch with a mortgage broker - sometimes they also have other options besides a WHL that would be suitable 
Oh, and with the WHL they do catch up phone calls every 6 months just to make sure everything is going ok etc. Pain in the bum, but they last about 5 minutes and that's it for another 6 months!! Like I said, we've had ours for just over 2 years, and without it, we wouldn't have our own home If you want any specific info, feel free to ask, or PM me I also have a lot of knowledge regarding the legal side of things, as it is my background (property law and insurance) so any questions about that are quite welcome too!!
Last but not least.....sorry for the novel and good luck!!!! |
Posted By: countingdown
Date Posted: 24 March 2010 at 9:45pm
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Hi there, I have a friend and her husband who have just moved into their new home which they purchased through the scheme. They didn't seem to have any trouble, and they didn't have to 'save' the money for 6 months. They were gifted the deposit, and I think they were given it not that long ago.
The only trouble they had was finding a house that didn't have to have too much doing to it, I think HNZ would only allow $5K worth of renovations as part of the loan. Good luck, it's definitely worth a go. The govt wouldn't have set the scheme up if they didn't want people to get into their own home, so I think you can feel positive and excited about it. Good luck. ------------- <a href="http://pregnancy.baby-gaga.com/"><img src="http://tickers.baby-gaga.com/p/dev065pr___.png" alt="pregnancy calendar" border="0" /></a> |
Posted By: blossombaby
Date Posted: 24 March 2010 at 9:57pm
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thank you so much. has answered a few questions. we can service a home loan no problems we just havn't had the saving thing going on .. we have very small debt .. and it is possible for us to pay this off .. very lucky to have parents that are wanting to help us out and get ahead which i am so thankful for!! will let you know how i get on.
i know of a few people that have got loan via WHL but am yet to ask how we go about it. thanks |
Posted By: emz
Date Posted: 24 March 2010 at 10:28pm
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Good luck - it's a great scheme, wish the limit was high enough when we purchased for us to get a house under it
My cousin and her hubby had gifted money and bought their first home under WHL - they have nothing but positive words about it. |
Posted By: Bobbie
Date Posted: 25 March 2010 at 10:30am
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I wish we could do it. We meet the criteria but because DH doesn't earn enough for the repayments we only qualify for about $180,000 or something which won't get you anything in Auckland.
Great scheme though. -------------  
 
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Posted By: pekay
Date Posted: 25 March 2010 at 10:55am
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Well, I am one of those lucky 7 that have one of these loans....
It was the MOST SIMPLE thing I have ever done. It was by far easier than getting a 5k car loan. I went through SBS and I had one initial appt. They called me a day or 2 later to tell me it was accepted. And from there, all I had to do was sign a few papers. The phone calls are annoying, but like someone has already said- they last 5 minutes. I'm not sure if it is the same for all sales, but we had to have a valuation and they would only lend up to that price (which is smart). It was just having to pay $400 for the valuation which bugged me. |
Posted By: IVFGirl1111
Date Posted: 25 March 2010 at 11:28am
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Good luck you will be totally fine!
My brother is a mortgage broker and he puts A LOT of people on the WHL scheme - its a great scheme. ------------- TTC 6 years IVF it is IVF/ICSI round one 10 eggs, 8 mature, 3 fertilised BFN IVF/ICSI #2 = 22 eggs! 20 mature, 15 fertilised, 1 fresh transfer and 2 frosties BFN 2 Frosties still in freezer thank god |
Posted By: EmDee
Date Posted: 25 March 2010 at 11:30am
I can't comment on the scheme, but just wanted to say best of luck and you have awesome parents!  ------------- DS 8 DD 6 DS 4 DD 2 |
Posted By: RinTinTin
Date Posted: 25 March 2010 at 11:48am
LOL Kate - we all know my DP is full of it though right  ------------- http://lilypie.com"> 
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Posted By: KM1979
Date Posted: 25 March 2010 at 1:14pm
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Hi,
My husband & I purchased a house a year ago with Welcome Home Loan Scheme though TSB, We didn't need to get a deposit as our house came in under $200k but if you can get on the scheme I reccomned it, we were 4 months pregnant & had been looking for awhile at houses but not taking that step to do it but after finding out we were pregnant it gave us the push. Good luck it's a great scheme to get you into the house market. & we even brought in Taupo in a nice area. |
Posted By: Raspberryjam
Date Posted: 25 March 2010 at 5:55pm
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Has anyone bought a house through this that has already owned a home ever??
I know a few who have used this scheme too and love it, but I owned a home once so I dont think I can do it through this scheme ------------- http://lilypie.com] 
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Posted By: pekay
Date Posted: 25 March 2010 at 6:04pm
| No, you won;t be able to Raspberryjam. But the person you are buying with may be able to. We have just put this loan under my name, incase we need to use the scheme again and DF can do the next one. |
Posted By: minik8e
Date Posted: 25 March 2010 at 7:08pm
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RJ - I would double check, as I think they changed the requirements, and now it's as long as you meet the criteria and do not CURRENTLY own a home, you qualify. Might pay to give them a ring though!!! Our mortgage broker did say something like this to us but I never paid much attention, just because we were trying to buy our first home at the time and buying another wasn't even remotely worth considering LOL
Carin - your DH is similar to mine - he knows everything there is to know about things, even if it's not actually quite right 
Oh, and it is taking a wee bit longer than 1-2 days to get confirmation at the moment, mainly because of Housing NZ (who have to approve the loan as well as the lender). It's taking around a week or two to get the final confirmation at the moment. |
Posted By: freckle
Date Posted: 25 March 2010 at 7:56pm
LOL isn't that most men
This thread has been really interesting... I think we'll look into one of these too... mind you we have a few credit glitches between us from younger years  ------------- mum to 3 lovely girls :D |
minik8e wrote:Posted By: minik8e
Date Posted: 25 March 2010 at 7:58pm
| freckle - like I said above, DH and I did also. Bear in mind that they only stay on your credit history for 7 years - I'm not sure how long ago yours were, but it's something to remember!! |
Posted By: freckle
Date Posted: 25 March 2010 at 8:12pm
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thanks - yeah I saw that minik8t... that's what gives me some hope ------------- mum to 3 lovely girls :D |
Posted By: emz
Date Posted: 25 March 2010 at 8:24pm
| I think the requirements are that you have to be in the position of a new home buyer, so very little deposit, haven't been able to have financial success from owning your own home etc. This is the recent change some were talking about. |
Posted By: hannibal
Date Posted: 25 March 2010 at 9:06pm
| Good luck and happy house hunting! Best get in quick as the talk is the banks are really tightening up and WHL especially. |
Posted By: blossombaby
Date Posted: 25 March 2010 at 9:08pm
| thanks so much for the feedback guys will keep you updated on how it goes .. for those that are interested in it for them! |
Posted By: AandCsmum
Date Posted: 25 March 2010 at 9:29pm
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My friend has just got one of these & she has owned a home before, prior relationship though. Her Hubby hasn't owned one before & they've been renting for at least 5 years. ------------- Kel http://lilypie.com"> 
A = 01.02.04 & C = 16.01.09 & G = 30.03.12 |
Posted By: Raspberryjam
Date Posted: 25 March 2010 at 10:26pm
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oh ok, well we have both owned a home in a previous marriage, in fact DH still has his name on the ex's so I doubt it... in saying that its not like you can buy stuff all in auckland for what they offer you ------------- http://lilypie.com]
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Posted By: minik8e
Date Posted: 25 March 2010 at 10:35pm
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Your DH wouldn't be able to be included then, as he currently owns a house. You can borrow up to $350,000 in Akld which isn't so bad is it?? (Bear in mind, I do NOT know Akld prices at all!!!)
Just remember as well - if you purchase in only your name, then a) the risk is ALL yours and b) only your income can be included in the calculations, which may well reuce how much you can borrow. |
Posted By: Lexidore
Date Posted: 25 March 2010 at 11:18pm
This 7 year thing, is that 7 years since you finished paying said glitch sorry totally OT I know but was just curious! ------------- 
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Posted By: minik8e
Date Posted: 26 March 2010 at 7:45am
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Ok, just checked it, and it's mostly five years except for bankruptcies....
How long is the information held in my credit file? * Payment defaults and collections (overdue accounts) are held on your file for five years * Bankruptcy notices is held on your file for seven years * Credit applications and Previous Enquiries are held on your file for five years * Court judgments are held for five years * Subject details, which include name, date of birth, gender, and address history, are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database. NB: Even when a payment default has been brought up to date or paid in full, it will not be removed from your credit file. All payment defaults remain on file for five years from the date of listing. The fact that an account has become overdue, and then been paid becomes part of your credit history. You can get a copy of your credit file by filling out http://www.vedaadvantage.co.nz/dotAsset/505368.pdf - this application and sending it away - it costs nothing. |
Posted By: Raspberryjam
Date Posted: 26 March 2010 at 10:09am
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Well I have no income so counts me out, and I probably wouldnt live in an area of auckland that had house for under $350 k - pretty dodgy. Although there may be some left in west auckland. I think you need at least $400k to get anyhting near decent up here Kate.
Will just wait til I have had my babies , its no biggy, Id rather have a lifestyle at present ------------- http://lilypie.com]
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Posted By: Bobbie
Date Posted: 26 March 2010 at 11:52am
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RJ you can get some ok places out in Albany and Birkenhead etc. for $350 but they would be small lockwoods or little units.
On a slightly different topic - Is it worth going to see a mortgage broker if you don't think you can buy a house? Like DH and I are busy throwing rent into the abyss and no savings but we keep thinking well maybe there is a way to get a house but we just aren't able to figure it out. Would a mortgage broker get upset with us if we went and it was just a waste of time (or even worse be scathing?) -------------
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Posted By: Raspberryjam
Date Posted: 26 March 2010 at 12:38pm
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Id check it out Bobbie, thats what they are there for. Or you could just go straight to kiwi bank - you can get a loan on 5% deposit
I couldnt live in a box or an apartment and the houses in beachhaven are in the bronx - Id rather wait I think ------------- http://lilypie.com]
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Posted By: caliandjack
Date Posted: 26 March 2010 at 2:58pm
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Mortgage broker service is free, and they are there to help and offer financial advise, it would be pretty poor service on their part if they completely dismissed or ignored you. ------------- http://lilypie.com" rel="nofollow">   [/url] Angel June 2012 |
Posted By: Bobbie
Date Posted: 26 March 2010 at 4:10pm
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Yeah I was just wondering as brokers make their money from the banks don't they? So if they couldn't do anything for us they would end up doing a lot of work for nothing.
RJ no savings like that. Definitely not 5% of a house unfortunately. We have enough to put food on the table and a little extra if the car breaks down and that's it. -------------
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Posted By: Raspberryjam
Date Posted: 26 March 2010 at 5:47pm
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oh well your in the same boat as us for a while it sounds, so I can tell you now we have been down that path and kiwi bank was the best we could find.
They do do the welcome home pack but clearly we wouldnt meet the criteria. Our mortgage guy was great but then we had Milla so it will just have to wait til til I go back to work in a few years time ------------- http://lilypie.com]
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Posted By: lizzle
Date Posted: 26 March 2010 at 5:54pm
| we got turned down by kiwibank, but were accepted no (real) problem from TSB. we went through a mortgage broker and while in the end it was happy, she caused us a lot of stress and "misplaced" several documents that meant our application took 6 weeks!!! |
Posted By: Raspberryjam
Date Posted: 26 March 2010 at 6:27pm
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thats good to know lizzle, but where abouts in NZ are you? ------------- http://lilypie.com]
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Posted By: BaAsKa
Date Posted: 26 March 2010 at 8:22pm
we tried to get a WHL and were declined ....we then went straight to national bank and got accepted no sweat!
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Posted By: Bobbie
Date Posted: 26 March 2010 at 8:41pm
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Why did you get declined? If that's not too personal? I just figured they accepted most people.
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Posted By: Raspberryjam
Date Posted: 26 March 2010 at 9:36pm
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If anyone through all this does find a place that does %100 home loans Id be stoked to know! ------------- http://lilypie.com]
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Posted By: emz
Date Posted: 26 March 2010 at 9:50pm
| Definitely talk to a mortgage broker Bobbie, they can go through all of the scenarios with you. |
Posted By: minik8e
Date Posted: 26 March 2010 at 10:36pm
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RJ - 100% lenders are pretty think on the ground at the moment, except of course WHL, simply because of the economic situation. The most common way to get 100% finance is to have a second tier/mezzanine lender on board (Bridgecorp, Liberty Financial which is a subsidiary of National Bank etc)...however those lenders have HIGH interest rates (like over 10%) and VERY high lending fees (in the $'000s) plus low equity fees.
Bobbie - def go to a mortgage broker, they will investigate all of your options. They tend to know who is more sympathetic to certain situations etc. We got turned down by Westpac for a 100% loan (they were doing them at that stage) but ended up with SBS via a WHL. |
Posted By: BaAsKa
Date Posted: 26 March 2010 at 10:38pm
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Bobbie to be honest i actually cant remember why!! but it clearly didnt matter to national!!
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Posted By: Snappy
Date Posted: 26 March 2010 at 11:21pm
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We got declined for this through TSB. Took us almost 4 months to get a final answer - going back and forth with all the paperwork! Then, when we finally had everything they needed they announced they had changed the criteria and we now had to be in a job for longer than 1 year (rather than 6 months)
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Posted By: Raspberryjam
Date Posted: 27 March 2010 at 10:09am
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Yeah I know Kate, but you dont always get all the info with a mortgage broker.
We meet the criteria for a loan but have no deposit . No big deal though we will have no debt at the end of the year so will save as of next - Id rather enjoy a bottle of wine or a weekend away when we want than have to stay stuck at home to meet a mortgage payment just now, its only 2 more years ------------- http://lilypie.com]
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Posted By: kathamill
Date Posted: 27 March 2010 at 1:49pm
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One thing to clarify, we got a WHL through SBS, and my dad was gonna gift us the deposit. BUT two weeks before applying, SBS changed their rules saying that gifted deposits also needed to be saved, and needed 3 or 6 months of bank statements proving that. My dad has their house on revolving credit, so it wasn't gonna be saved as such. So we had to break the term deposit on my DH's family trust account . that was about 6 weeks ago. It all worked out in the end tho
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Posted By: lizzle
Date Posted: 27 March 2010 at 6:33pm
| rules seemed to have changed quite a bit. i remember our broker telling us if we had waiting two more weeks before applying, we probably would not have got the loan |
Posted By: BaAsKa
Date Posted: 27 March 2010 at 9:56pm
oh now the reason comes floading back to me!! - we applied through SBS and they took AGES to get back to me then when they did they said we missed the cut off point and we now dont meet their criteria!! i was so pissed off and the lady was rather rude too!!!
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