Finance Options

Ok, you’ve decided you definitely want to buy a house…so where do the funds come from?

Banks and mortgage brokers both offer a variety of mortgage options and structures. Mortgage finance can be arranged quickly – in as little as 24 hours if need be.

Mortgage amount, rate of payment and rate of interest will vary depending on your individual circumstances and interest rates. Mortgages will usually provide up to 95% of the property’s sale price. Most of the time lenders will want to see evidence of your banking history, income and a bank reference.

It worth spending a little time shopping around as the mortgage market is very competitive.

Do I need legal advice?

Although it’s not a necessity many home buyers opt to employ a lawyer to guide the process, do a lot of the ‘leg-work’ and ensure it all goes smoothly.

A lawyer can:

take care of the contract work
review LIM reports
perform a title search; and
liaise with the bank, mortgage broker and estate agent
manage the deposit and final payment.

The LIM Report and Building Inspection

It is standard for an offer to be conditional on a LIM (Land Information memoranda) report and building inspection.

Some people prefer to review this information beforehand and present an unconditional offer (which can be more tempting to the vendor).

LIM reports

A LIM report is prepared by the local council and includes information on:

special land features – erosion, flooding etc
storm water and sewerage drainage
details of approved building/plumbing/drainage permits and consents
details of proposed zoning, road changes, height restrictions and view and tree protection

Building Inspections

A Building Inspection is performed by a building inspector or qualified tradesperson at your request. It will provide information on building structure, roofing, plumbing, electrics and potential problems or necessary repairs.

More information about housing in New Zealand

Buying property in New Zealand