KIWIS CHECK YOUR MORTGAGE

RATES ON HOW MUCH YOU WILL PAY PER MONTH

USING OUR EASY MORTGAGE CALCULATOR

The low rates have enabled qualified home buyers (and owners looking to refinance) to access cheap finance, adding to home affordability which has gone crazy in NZ. It’s helped bolster a surge in both home sales and price increases (since lower rates help make larger principals possible). Rates are climbing now due to both stronger economic data and to speculation but is this in fact good for the buyer as the economy although sound good may be beset with problems further down the line as the Government sells assets and more in private hands will mean cost rises.

MORTGAGEE 2015

are ready to rise for all you homeowners who think short term loans are the way to go.

With interest rates on the rise in the West look at long-term mortgage rates not short term. Believe me low interest rates are dodgy and you need to budget on mortgage payments of 8-10 % as you need a safety factor. If you borrow below this margin you are mad and not looking at the changes that will occur as we follow USA. The house prices will crash and the mortgage rates will rise as they are doing now. Bank do not care anymore and they do not portray to you what might happen with interest rates as they win all the way as they are the bank. If you borrow on short term you will be trapped into losing your property as you never prepared for the years ahead. Do not listen to other people---check on the trends of years gone by. Banks are there for $$$$ your dollars and don't care a damn about you. Have a good mix of floating with low short-term fixed rates, if you don't have a good amount of equity in the property.

If buying up rentals remember a Trust account you pay 33% in the dollar now and why have a rental in Levin where theres no business just work and income benefits. To own a property here for rental you better have good tenants as many horror stories abound and people are now saying is it worth having.

NZ is having a housing problem with resource consents rising and cost to build homes increases to levels beyond the average person's budget. Councils have reached unsustainable levels of spending and being run as an oligarchy as in the Levin Horowhenua Council is at present. There is no stopping the rates rises to fund mega projects they have in store.

BUYING A MORTGAGEE SALE PROPERTY

Buying a property under a mortgagee sale you may think its easy and you can get a bargain but their are hidden items that you will need to know as it could turn out to be a nightmare. Mortgagee owner being the (bank) does not have to give vacant possession so its up to you to remove the tenants/mortgagor who may not leave quietly. If the householder owner being the mortgagor or a tenant is in the property on settlement date and refuse to shift then it is your problem. You then have to file to evict the tenants and be aware as this is when the trashing will start and the mortgagor will do all sorts to make the transfer a pain for you. Theres also no set rules or warranties in standard Agreements for Sale and Purchase do not apply in mortgagee sales.  That means that if additions have been completed on the property without a building consent or the issue of a Code Compliance Certificate then its on you. You cannot enforce this in the sale. The bargain you thought may not be the bargain after all as the Insurance company may also change its mind which will affect your Bank loan payments if youre not a cash buyer.

Don't ask the Bank for help as its all your problem and you can't add clauses that you would like this or that when you buy. You may wish to get their ( the mortgagor owner whose living in the property) their feeling on the sale before you go ahead perhaps or offer some incentive to leave the place in one piece. eg. help in removing to another property perhapsor extra time to vacate. Theres no recompense as you still have to settle in full and now its up to you to negotiate with the occupants or go or ride down the path of trespass. You could offer them $$ to move to another property perhaps or you can use the Court but then they could still trash the property in the meantime. There is no obligation for keys to be provided to you on settlement so best change the locks anycase in case of future incursions by an irate evicted mortgagor owner.

The contract is very important and the vendors name must be exact. You will normally have to pay 10% deposit so have all this done by your lawyer. The mortgagor can still stop the sale if it comes to the party with the Bank it owes at any time before sale. If buying Unit Titled properties & apartments, you are normally entitled to certain information about the property including Body Corporate rules, accounts, payments, sinking funds, fees & Management bodies etc


Insurance risk will pass to you on signing of the Agreement. You need to make sure before the auction that your insurance company will provide you with insurance cover even though you are not yet the legal owner. Also make sure that your bank knows it is a mortgagee sale - as they may change the total amount the bank will agree to lend.

The best idea before buying is to use a lawyer and check also that theres no clear guidelines and you could find a trashed property that you did not budget for. You can also use the services of a real estate agent if going thru a Realty firm. However its entirely up to you as theres no clear cut rules. Source Reuters.

HERES THE DANGER WITH THE BANKS WITH YOUR MORTGAGE:

• What if your funds are being used by Banks to Rehypothecation as has happened to MF Global & Hedge funds where your funds are now susceptible to being reinvested?? Do you know what this is will if not read this [ Check this out ]

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