Unlocking Higher Home Loan Amounts:A Solution to Your Frustration

Introduction

Welcome back to our channel! Today, we address a common frustration shared by many customers – the challenge of obtaining sufficient lending amounts to realize their dream homes. The stringent lending requirements imposed by banks have erected significant hurdles, often stemming from the intricacies of income assessment. In this segment, we present a potential solution that could pave the way for securing larger loan amounts and guide you towards a more strategic home buying plan.

Surprising Disparities in Borrowing Capacities

It's not uncommon for our clients to express surprise at the varying borrowing capacities of individuals. The underlying reasons for these differences lie in the tendency of banks to overlook numerous income sources and expenses, resulting in a substantial undervaluation of your lending capacity.

Unveiling the Income and Expense Oversight

What's more, when banks calculate your existing loans, they do not consider your actual repayment amount. Instead, they subject your finances to a higher stress test of interest rates, causing an underestimation of your income and an overestimation of your existing expenses. This dynamic significantly curtails your potential borrowing capacity.

Exploring Beyond Traditional Banking

Non-Bank Lenders in New Zealand

New Zealand presents an alternative to traditional banking – a range of non-bank lenders known for their flexibility. While their loan rates might not always be lower than those offered by banks, these lenders accommodate additional income streams beyond your regular job or company earnings. This includes commercial rental income, Airbnb earnings, government subsidies, overseas income, and property development profits. Despite these income sources often being disregarded in traditional assessments, non-bank lenders may consider them, contingent on your provision of appropriate documentation.

Liberating Existing Loans

Non-Bank Lenders' Approach

For those with existing loans, non-bank lenders adopt a different approach, basing calculations on your actual repayment amount. If your current loan rate is favorable, this method could substantially amplify your borrowing capacity compared to the methodologies employed by banks.

Age No Barrier

Non-Bank Lenders' Loan Term Flexibility

Some of you may be seeking your first home or upgrading your existing one, even if you're over 45 years old. While banks might offer shorter loan terms, non-bank lenders tend to be more lenient, potentially providing extended loan terms similar to banks for this demographic.

Interest Rates: Non-Bank Lenders' Competitive Edge

Contrary to assumptions, the interest rates offered by non-bank lenders need not be exorbitant. In today's market, specialized variable-rate products are available, boasting rates as low as approximately 7.5% for loan-to-value ratios under 80%. Remarkably, these rates can even compete with those of banks, provided your financial profile aligns with their criteria.

Of course, these non-bank lenders might impose application fees, ranging from a fixed fee of $495 NZD to around 1.5% of the loan amount, contingent on the lender's policies.

These non-bank lenders offer a pathway to realizing your dream home by addressing borrowing capacity concerns. Moreover, in the future, when the timing is opportune, you retain the option to refinance your home loan with mainstream banks, securing lower interest rates.

Conclusion: Empowering Your Purchasing Power

We trust that today's insights have empowered you to expand your purchasing potential. Feel free to reach out to us for further discussion and guidance. Until next time!