09
May

Different banks, different rules. Here’s how to make them work for you.

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Each bank has a different set of rules. If you aren’t aware of them, you could end up with a loan that doesn’t fit your needs.

The reason for this is that banking is competitive but highly regulated. On top of the Reserve Bank regulations that govern all lending in this country, each bank also sets its own rules. For instance:

•    How much marketshare the bank has. Does it want to grow its loan book or just cherrypick the easy loans?
•    Exposure to different areas of the economy. Perhaps a bank has lent too much to the apartment market or is over-committed to Auckland.
•    Exposure to a particular development. Banks are wary of having too much skin in a property developer’s game

So don’t take it personally if your long-term bank doesn’t say ‘yes.’ It may have nothing to do with your creditworthiness. Give me a call instead.

By understanding your goals I can match you with the bank that’s best able to meet them. For instance, if you are buying a property that needs major renovations, we will find a lender who’s willing to fund the reno as well as the purchase.

There are also some traps to avoid. One of them is choosing the cheapest rate, and then finding the bank won’t lend you the funds for the renovations. Once you’ve locked yourself in for a long term it can be very costly to break out of it.

If you want it, we’ll make it happen. That’s because we are more than just mortgage brokers – we’re strategists to help you achieve your goals

Do you know someone who’s looking at buying and could do with some smart guidance? We’re more than happy to help, even if they aren’t quite ready to apply for a loan.  Make an appointment.