Lending: Buyer Tips & Frequently Asked Questions
In addition to the First Home Buyers Guide, these questions may be on your mind regarding loans, mortgages and lending. Consider this a basic 101 Course on lending terms and mortgage phrases.
Read the answers in our Buyer Tips for Lending and see if the answer to your question on loans is here. If these FAQ's for Lending don't answer all your questions, please contact Rapson Loans & Finance Ltd by calling 07 577 1209 or 027 552 6020 for Chris and 021 119 9458 for Tristan or by sending an email using the Contact Us Tab above. We love to help people when arranging a home loan or business mortgage - so please send us your lending questions.
Buyer Tips for Lending - Frequently Asked Questions
Can I get a pre-approved home loan in New Zealand when I’m overseas?
Yes we can help you arrange a pre approved mortgage . Complete the "Get in Touch" box for a more detailed discussion.
You must complete a Sales & Purchase Agreement contract - as verbal agreements are not legal in New Zealand. We can help you with this.
I have heard there are two types of Sale and Purchase Agreements in New Zealand – which one is best for me?
We can help you with the requirements and conditions for the purchase contract, whether it be a Sale & Purchase Agreement through a Real Estate agent or a Private Treaty direct with the owner of the property. We can also refer you to a solicitor if necessary for specialist advice.
What conditions can I add to my contract?
You can add many different special conditions to a Sales and Purchase Agreement to meet your requirements. Whether it is finance, settlement , title searches, building reports, sale of another home and many other important matters, we can advise you on these sales conditions and provide advice based on experience & knowledge. Where the matter is more complex or requiring specialist input we can refer you to professional advisers in their respective fields.
Title Search or LIM Report:
Do I need to arrange a title search? What is a LIM report? Are they the same? Do I need a LIM report? How do I arrange a LIM report?
Generally your real estate agent will be able to supply you with a copy of the title for the property you are interested in and if you have any concerns with it you should seek advice from your solicitor.
A LIM (Land Information Memorandum) report is issued by the local council for the area in which the property is situated and contains information the Council holds i realtion to the property. It is good practice to get a copy of the LIM report before committing to purchase the property and Vendors (property owners) will quite often have a copy available for you. You can also apply for a copy for a modest fee at the local council offices.
(For more detailed information on what the LIM report can contain go to www.property.org.nz)
A deposit (which can be negotiated through the real estate agent) needs to be paid when the contract is signed by both parties and after the deal has become unconditional. This is one of the important requirements to make the contract legally binding. This deposit is able to be held by your solicitor or in the real estate office trust account until the settlement date.We can help you with this part of the buying process.
Fail to settle:
If the sale/purchase of the property doesn’t go through to completion or fails to settle for whatever reason, will I get my deposit back?
These deposit conditions need to be set correctly from the start so you don’t get caught in an unexpected situation. We can help arrange for you to receive the best possible advice about this so that your best interests are kept to the fore under New Zealand conditions.
Do I have to pay interest on the remainder of the purchase price when settlement is delayed?
Again we will ensure that you receive the best possible advice with this purchase condition.
It is important to prepare the right documentation for the requirements of each lending institution. We know what they need and can streamline this process for you.
Tax & Duty:
Do I have to pay Stamp Duty or Property Tax? Does New Zealand have Capital Gains Tax?
At present there is no Stamp Duty/Property Tax or Capital Gains Tax to pay on property transactions in New Zealand.
Interest Rates and Deals:
Do all the banks and finance institutions in NZ offer the same interest rates and have the same lending policies? Which one has the best deal?
The advertised interest rates offered are usually pretty similar between the lenders but by using our extensive knowledge in this area we can arrange the right deal for your personal situation and negotiate the best possible interest rate . A high percentage of New Zealand borrowers “fix” the interest rate on their mortgage for periods from 6 months to 5 years. This percentage has dropped over recent times but we are happy to provide the background information and advice about which option should suit your situation best.
Lending policies can also vary quite considerably between the lenders which is where my expertise can be invaluable to maximise your borrowing capacity.