Latest / That Home Loan Hub / When Your Address Is a Deal-Breaker (And How to Fix It)

Transcript

When Your Address Is a Deal-Breaker (And How to Fix It) · That Home Loan Hub

• 0:10
  Speaker 0: Welcome back listeners.
• 0:11
  Speaker 0: Today is an interesting one.
• 0:13
  Speaker 0: We're going to delve into a case study for first-home buyer clients.
• 0:19
  Speaker 0: They've reached out to me a few months ago.
• 0:21
  Speaker 0: They live in Greymouth of New Zealand, young couple in their 30s, they've got three young kids, they work hard and good incomes and they've been trying hard to save some money.
• 0:34
  Speaker 0: So let's have a look into their case and what went wrong and what went well, because today we're very, very excited for them after a big blip that we've had.
• 0:45
  Speaker 0: So they have approximately $68,000 in deposit and that comes from KiwiSaver and savings, dollars in deposit and that comes from KiwiSaver and savings.
• 1:01
  Speaker 0: They have few assets like cars and contents, but the main thing they had going for them well was their incomes.
• 1:05
  Speaker 0: They're both on $55,000 a year in a profession that's not going to go out of market anytime soon.
• 1:12
  Speaker 0: So from the bank point of view they were ideal clients to help them out under the first home loan with Kayanga Ora.
• 1:19
  Speaker 0: So we thought we'll have no problem at all.
• 1:22
  Speaker 0: We've applied them to our preferred partner that has fantastic rates for first-home buyers Now, only to find out two weeks later that this particular place does not land in West Coast of New Zealand.
• 1:35
  Speaker 0: So these clients were not able to get approved just because of the location.
• 1:40
  Speaker 0: Look, in my 15 years in finance, this is the first time ever that I see one of the lenders declining an applicant because of the location where they want to buy.
• 1:51
  Speaker 0: If they wanted to buy in Wellington or Christchurch or anywhere else, they would have been fine, but because of where they were, the bank decided they were not ideal clients for them.
• 2:02
  Speaker 0: So we had to regroup, we had to look at new options and we had to reapply them somewhere else.
• 2:06
  Speaker 0: Now, because the banks are taking a very long time at the moment to come back to us, it took us a while to get a positive outcome for them, but the good news is today they have been approved for even more than what they were requiring initially from another big lender, and this big lender didn't care about the location.
• 2:28
  Speaker 0: All they cared about is the quality of the applicants.
• 2:31
  Speaker 0: They looked at their incomes, they looked at their deposit and they looked at their expenses.
• 2:36
  Speaker 0: And the greatest news is they got in before.
• 2:39
  Speaker 0: The low equity premiums are changing for Kayanga Ora Because, remember, from 1st of July the low equity premium will change.
• 2:47
  Speaker 0: The fee will change from 0.5% to 1.2%, and that's a huge change.
• 2:53
  Speaker 0: In one of the next episodes I will do a breakdown for you of how much difference it makes on the average loan for average first home buyer.
• 3:00
  Speaker 0: So good news for those clients.
• 3:03
  Speaker 0: If you have been told no because of the location of where you want to buy or the house, don't lose hope.
• 3:08
  Speaker 0: Reach out to us.
• 3:09
  Speaker 0: We will be able to have a look at it and let you know what your next steps will be.
• 3:14
  Speaker 0: Thank you and bye.