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5 Epic Home Loan Fails Every Kiwi Should Avoid · That Home Loan Hub

• 0:10
  Speaker 1: Dumb stuff Kiwis do with home loans.
• 0:12
  Speaker 1: Again, more epic mortgage fails and how to avoid them.
• 0:16
  Speaker 1: Welcome back, it's your mortgage mate, zibuniso.
• 0:19
  Speaker 1: And yep, we're doing it again Another round of mortgage mistakes that make us laugh, cry or pour another coffee or wine.
• 0:27
  Speaker 1: This is part two of the dumb stuff Kiwis do with home loans, because apparently one episode wasn't enough.
• 0:34
  Speaker 1: Look, we're not here to judge, but if you see yourself in any of this, take it as a loving nudge to get your mortgage life together.
• 0:42
  Speaker 1: Fail number one I fixed for five years and now I'm stuck.
• 0:47
  Speaker 1: Some people panic when the rates go up and rush to fix for the longest term possible, like five years, without thinking about their future plans.
• 0:56
  Speaker 1: What went wrong?
• 0:57
  Speaker 1: Now they're stuck with huge break fees if they want to sell, refinance or restructure.
• 1:03
  Speaker 1: So what can you do to avoid this?
• 1:05
  Speaker 1: Think about flexibility.
• 1:07
  Speaker 1: Talk to your advisor about your one to three year life plans before locking in.
• 1:13
  Speaker 1: That would be a smart decision to do.
• 1:16
  Speaker 1: All right, let's look at fail number two I told the bank I have no debt except my three credit cards and a car loan.
• 1:23
  Speaker 1: Look, lenders don't appreciate surprises.
• 1:26
  Speaker 1: Forgetting to disclose debts doesn't make them disappear, because guess what?
• 1:32
  Speaker 1: Everything is clear now on your credit checks, and every single lender runs a credit check.
• 1:38
  Speaker 1: So what went wrong in this one?
• 1:40
  Speaker 1: Approval delays, trust issues with the bank and sometimes it can be a full decline after discovery, because one of the five C's that you get judged on is character.
• 1:52
  Speaker 1: So if your character is not telling the truth, the bank may not trust you again.
• 1:56
  Speaker 1: So how can you avoid it?
• 1:58
  Speaker 1: Be upfront, your advisor will help present your application in the best possible light, but we do need the full story.
• 2:06
  Speaker 1: Now let's look at fail number three Interest only forever.
• 2:10
  Speaker 1: Because YOLO, this one made me laugh.
• 2:15
  Speaker 1: Look, using interest only as a lifestyle tool for years was no plan to switch back to principal and interest.
• 2:21
  Speaker 1: What can go wrong?
• 2:22
  Speaker 1: No equity build up, you're just relying on capital gains, and it's a bigger risk if house prices drop, plus a rude awakening when the banks eventually say no more.
• 2:36
  Speaker 1: So how can you avoid it?
• 2:38
  Speaker 1: Have an exit strategy.
• 2:39
  Speaker 1: Use interest only for a purpose, so short-term cash flow relief or investment reasons, not a forever solution.
• 2:46
  Speaker 1: And remember when things do go downhill and if you do need to rely on interest only.
• 2:52
  Speaker 1: But if you're already on interest only, you can't.
• 2:55
  Speaker 1: So be clever about when you want to use that option.
• 2:58
  Speaker 1: Now fail.
• 3:00
  Speaker 1: Number four DIY mortgage applications.
• 3:03
  Speaker 1: Because who needs a broker?
• 3:04
  Speaker 1: Right, going it alone sounds brave, until you submit half-baked documents, pick the wrong bank and miss out on better deals.
• 3:13
  Speaker 1: So what went wrong in this one?
• 3:15
  Speaker 1: Multiple declines, wasted credit checks, burnt relationship with banks.
• 3:20
  Speaker 1: Again, when you go to an advisor, they will know what's the best possible lender for you out there.
• 3:27
  Speaker 1: So how can you avoid it?
• 3:28
  Speaker 1: Use an advisor.
• 3:29
  Speaker 1: Hello, that's us, and we know the game.
• 3:32
  Speaker 1: We know the banks, we know how to package your deal right the first time.
• 3:37
  Speaker 1: Yes, it may take a little bit longer through us, but at least you know the outcome you will get will be the best one for your situation.
• 3:44
  Speaker 1: Now fail.
• 3:46
  Speaker 1: Number five I bought that fancy car two months before applying for a mortgage.
• 3:51
  Speaker 1: Hmm, new car, new debt, new problem with your debt to income ratio.
• 3:57
  Speaker 1: So what went wrong this couple?
• 3:59
  Speaker 1: They wiped out the borrowing power and now they can't buy the house they really truly want and they have to look elsewhere or reduce their expectations.
• 4:09
  Speaker 1: So how can you avoid it?
• 4:11
  Speaker 1: If you're even thinking about buying a house soon, please pause the car shopping.
• 4:16
  Speaker 1: Let's get that home loan sorted first, and then, after you bought your home, then you can start looking at a car.
• 4:22
  Speaker 1: So there you go More classic Kiwi mortgage mistakes.
• 4:25
  Speaker 1: If any of this hit a little too close to home, don't stress.
• 4:28
  Speaker 1: That's why we're here to help you avoid the fails and get the wins.
• 4:32
  Speaker 1: Catch you next time.