Frequently Asked Questions

The whole subject of home loans can be complicated - especially for most of us who only deal with it a few times in our lives. On this page you'll find some common questions and the answers. If you have a question and the answer is not here, please click here to contact us - we'll be happy to help

Alternatively, just select a question from the list on the left to find the answer you need.

Why should we go through you?

We are an independent mortgage broker company that works on your behalf to structure home loan finance in the most cost efficient way to suit your needs and submit an application on their behalf. This is our area of expertise and we are good at it.

What does it cost us to go through you?

Our service to you is free because the banks and home loan specialist lenders pay us. There are some lenders that will charge the client direct but these are few and we would advise you of this prior to considering using this lender. Some services also attract a fee and again we would advise you of this.

What about refinancing?

Making the decision to change home loans or refinance is difficult as there are dozens of loans available from a large number of lenders. On top of that, there are other factors to consider such as how long do you want your loan period to be or how much you can afford each month?

Some loans have early pay out penalties or fixed rate break costs and other costs you will need to consider. Sometimes re-financing is not the answer, so speak to one of our Consultants to ascertain if refinancing is the right option for you.

Click here to find out more about mortgage refinancing.

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Do I need a loan pre-approval first?

Yes, it's usually best to get a pre-approval from a professional Mortgage Broker.

Having a loan already pre-approved (usually subject to a valuation of the property you buy) means that you will know how much you can afford to pay for a home. It also lets you make a quick purchase decision, which may be a useful negotiating tool with the owner or agent; or at auction time.

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How long do loan approvals take?

The loan approval process depends on the borrower, the lender and the type of loan.

The average loan can usually be approved in 48-72 hours after we receive your completed application. If you need an accurate estimate of the time it will take to approve your loan, please click here to contact an Aim Finance Consultant.

How much can I borrow?

This depends on a range of factors including your personal circumstances, the price of the property and any valuation that may be required (a registered valuation may not be the same as the purchase price).

Mortgage Brokers say that depending on the lender, they may be prepared to lend up to 95% of a valuation, depending on your ability to repay. It's worth noting that loans of more than 80% valuation often require mortgage insurance, which the borrower pays for.

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I have credit history. What can I do?

Credit history will remain on your file for a period of five years. So whilst you can't change history, the best approach would be to ensure the rest of your credit history is 'spotless'.

If you would like a copy of your credit record, you can contact a Veda Advantage (Baycorp) credit reporting agency to ensure your default is listed as paid. Veda Advantage is New Zealand's largest credit reporting agency and can be contacted.

Non Conforming Loans are products which cater for individuals with an impaired credit history. Your Aim Finance Mortgage Broker can tell you whether this type of loan can assist you.

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We have already been to the bank and they said no. Should we give up?

Certainly not! On many occasions we have got loans for people after their bank has turned them down. We ask that you contact us and give us a go. Sound too simple, well it could be!

Irregular incomes & loans

Lo Doc Loans are the answer. Up to 75% LVR on the property purchase price.

In the past an irregular income or lack of records, could make getting a home loan very difficult. Fortunately, today our Mortgage Brokers can tell you about a range of options, such as Lo Doc Home Loans and similar loans designed for borrowers in your situation.

Click here to contact an Aim Finance Consultant to help you.

What can I afford to borrow?

How much you can afford to borrow to buy a home depends on a range of factors relating to the property itself, your lifestyle requirements and other personal circumstances.

There's no point living in the home of your dreams if you can't afford to do other things you really want to do! Our loan Repayment Calculator can help to provide you with initial payment information.

Click here and your Aim Finance Consultant will help you plan a budget and see how much you will be comfortable paying towards a mortgage. This helps us calculate how much you can afford to borrow.

Who sets interest rates?

Interest rates are set by the Lenders (Banks etc) and are based on decisions made by the Reserve Bank of New Zealand (RBNZ) and other market factors.

Generally, when the economy is in a trough (that's when unemployment is high and consumer spending is low) the RBNZ reduces interest rates to stimulate economic activity. The reverse is the case in a 'boom' situation and rates are increased to curb inflation.

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What is the best home loan rate?

It's often difficult to know how to find the best home loan rate available. It's surprising how many people simply walk into their local bank branch and accept whatever home loan rate the banking consultant offers them without knowing what alternative options might be available.

While you might be accessing the best possible interest rate your particular bank can offer you, it may not be the best interest rate available in the market. You might also not be aware of some of the features and benefits you might be able to access.

It is possible to compare home loan interest rates using an online comparison finder. When using home loan comparison software, it's important to remember to include any application or establishment fees you might be charged and any account fees or monthly fees.

Unfortunately, unless you work in or around the banking industry, the home loan rates can often be displayed in a format that is not always easy to follow.

Best Home Loan Rate

There is no such thing as the 'best' home loan - only the right home loan for your situation and your circumstances. Your financial situation is not going to be the same as anyone else's. The loan that helped your brother's friend so well won't necessarily be the right one for you because his income might be different to yours or he might have had a larger deposit.

While talking with an Aim Finance Consultant what's most important when choosing the best home loan rate for you is to consider your needs and your goals for the future. Once you know these things we can tailor a home loan package that suits what you're aiming towards.