Housing finance, legal advice and building inspections
Finance options
Once you make the decision to buy a house in New Zealand, you’ll need to look at your finance options. 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 85% of the property’s sale price.
Most lenders will want to see evidence of your banking history, income and a bank reference.
A mortgage calculator can help you work out what your repayments might be.
It’s worth investigating all your options and ‘shopping around’ as the mortgage market can be very competitive.
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:
- Oversee the contract work
- Review LIM reports
- Perform a title search
- 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 Memorandum) 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
- 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
The sale process
Renting in New Zealand
