FAQs
Does it cost anything to use your service?
When P&P Financial advisers successfully connect a client with bank funding, the bank pays the adviser a fee for arranging the loan. In cases where we need to utilise non-bank lenders, a fee maybe required from the client. At P&P Financial, there are no surprises with fees; we provide complete transparency and full disclosure about all offers we present, ensuring our clients are fully informed before take off
What banks do you use?
We have access to a vast array of funding options – including all the major trading banks and a wide range of non-bank lenders. We are not linked to any specific lender or product, so you can be assured that the solutions we offer are those we believe best meet your needs, and the advice we provide to you is always impartial
How much can I borrow?
There are a number of calculators published online that offer to provide indications of what you can borrow. However, these should not be relied on, as they’re unable to take into consideration an applicant’s specific circumstances. The team at P & P Financial can provide you with a fast and accurate assessment of your borrowing capacity.
Get in touch today for a no cost, no obligation chat.
How much deposit do I need?
The deposit required can vary – depending on your project and your income. P & P Financial works with a number of flexible lenders who will work hard to develop a solution to meet your needs
What will my repayments be?
At the current two-year interest rate of 2.59% p.a. if you borrowed $100,000 you would be repaying $453 per month (principal and interest payment over 30 years). This is an example and subject to rates and products provided by individual lenders. Our mortgage brokers can provide you with a more accurate indication based on your personal situation. Get in touch to learn more.
Why use a mortgage broker?
Mortgages are complex and there are many different types of loans available from a large number of both bank and non-bank lenders. A good broker will not only save you time and money but also share their financial knowledge and experience with you. They’ll first understand your financial requirements and then contact a variety of lenders to discuss available offers. They’ll then review the options taking interest rates and fees into account, to help find the very options for you.
With Bridging Finance, what is the difference between an Open Bridge and closed Bridge?
An open bridge is finance used when your home has not yet sold but you need to settle on your new home. Your own home would most likely be on the market at this point.
A closed bridge is finance used when you have unconditionally sold your own property however it will not settle until after you need to settle on the new property that you have brought.
Can I use my KiwiSaver to purchase my first home?
You can apply to withdraw some of your KiwiSaver Scheme savings to put towards your first home if you meet all of the following requirements:
At least three years has passed since Inland Revenue received your first contribution or you have been a KiwiSaver scheme member for three years or more;
You intend for the property you are buying to be your main residence and the property is located in New Zealand;
You have never owned your own property or land (however if you have previously owned property, but no longer own any property and your finances are considered to be in a similar position to that of a first home buyer, you may qualify to withdraw KiwiSaver funds towards buying a home);
You have never made a withdrawal from a KiwiSaver scheme to purchase a home before;
In addition, you will need to leave a minimum balance of $1,000 in your KiwiSaver account
Can parents gift money towards the purchase of a house?
Yes, this is very straight forward and becoming more common. The gift is documented by a ‘deed of gift’ which states the purpose of the money and that there is no requirement or ability for the gift giver to receive the money back, so it should be carefully considered.
I've been turned down by the bank, can I still get a mortgage?
There are many non-bank funders in the market offering different products such as construction finance, asset lending and mortgage options for applicants that don’t meet bank requirements. Non-bank funders are any lending company which is not registered as a bank. Non-bank funders are growing in numbers and can often provide a competitive solution where banks can’t assist.
P & P Financial work with both bank and non-bank funders to connect you to the mortgage solution that’s best suited to your needs and offering the most competitive mortgage interest rates.
What are the current LVR limits when buying an owner occupier home or investment property?
If you are buying a house to live in, the general rule is, banks require a 20% deposit. However, there are exceptions including a limited amount of funds available for lending to strong applicants with a lesser deposit. If you are buying a new-build home you are exempt from reserve bank LVR restrictions; the applicant’s outcome will come down to the individual bank’s policies most of which allow lower LVR’s, in some cases as low as 5%.
The Reserve Bank announced that from 1st March 2021, the LVR restrictions for investment properties would move to a maximum of 70%. Then, from 1st May, LVR restrictions for investment properties would move to a maximum of 60%.
Non-bank lenders are likely to see an increase in investment lending as they continue to offer lower LVR’s, in many cases requiring just a 20% deposit.
How are construction loans different than ordinary home loans?
Generally, NZ development loans work on an ‘on completion basis’. A lender will provide funding for the cost to complete the development because they are satisfied that the development will be completed for a known cost, within a known timeframe, and they understand the end value. Development loans have conditional requirements to ensure these outcomes are achieved. Residential loans work on a ‘current market value’ because the security, which is in most cases a house, is already constructed and the market value is already known
Do you help first time developers?
Yes! We love working with new clients whether it’s a single house build or multi-terraced housing development, connecting clients to the funds they need, ensuring their project can take off!
And we understand that starting a development can be daunting – knowing where to start and who to talk to. The team at P&P Financial are here to assist you achieve your goals. Whether you’re right at the start of your development voyage, or midway through, get in touch and see how we can help.