Preparing your Home Loan Application

When applying for a home loan, you want to make sure you’re well prepared for what to expect. Once you start thinking about contacting a mortgage adviser, you should assess your current financial position to have your own understanding of your needs when it comes to a home as well as what you can comfortably afford to pay in loan repayments.

Here are couple steps you can take before approaching a mortgage adviser:

1. Create a budget with your negotiables and non-negotiables – where can you reduce your spending and/or make cuts? If you had to prioritise your home loan repayments over everything else, what could you reduce your expenses to?
2. Secondly, you will need to maintain a minimum of three months clean account conduct, avoiding any missed payments or cash advances.
3. If you have any existing debt, is this something you can pay off prior to your home loan application?
4. If possible, demonstrating some consistent savings will make a good impression with the lender showing your commitment to repaying your loan.
5. Review your living situation and the requirements for your family – have a look at houses similar to what might suit your needs and what these houses are listed for.
6. Establish how much you personally could afford based on your budget, using an online repayment calculator.
7. Assess your deposit size, will you be applying with 20% or less? Are you eligible to use your Kiwisaver?
8. A final step is to confirm your ongoing income. Have you had consistent employment over the last 1-2 years? Are there any foreseen circumstances that may affect your income?

Once you’ve worked on your financial situation, you can approach a mortgage adviser with an understanding of what your options may be. A mortgage adviser will then complete a full assessment and find the best option for you.

If you’d like some more information on preparing your home loan application, we also have our First Home Buyers Guide resource which provides further guidance on the process as well as some definitions to terms you’ll come across.

If you’d like to get in touch to learn about your lending options, feel free to contact us using our details below. You can also subscribe to our monthly newsletters where we provide information on the latest housing market updates.

Looking forward to hearing from you soon.

Fiona & Amy

NZ Mortgage Advice