OUR MORTGAGE ON WTR
Jul 30th 2007, 11:29 pm
#1
TeamEmbo
Thread Starter
Joined: Jan 2007
Location: Rangiora
Posts: 1,557
OUR MORTGAGE ON WTR
Hi All
This is only our experience but it may be of use to some. Only been here 9 weeks so still very green really!
Came out on 30 month WTR visas. Put in for these 2 weeks before we were due to complete on house and fly out to Cch. Got them back in a week. Didn't plan to leave it so late, that's just how it worked out.
If we'd have had longer time scale before OH had to start work here, we would definitely have put in for PR from the UK. This is mainly because we barely had an egg cup full of money (not enough to fill a pot) and so not a vast amount to put down as a deposit for a house. Renting was never an option for us as it's just dead money. We wanted to start our new life here as quickly as possible and get settled. We had 2 weeks in a motel in Cch (paid for by OH's employer). We were lucky enough to find a house in the first week and moved in at the end of the second week.
Getting the mortgage was a shock. Because we didn't have PR or enough money for a large deposit, we needed a 94% mortgage. We were classed as 'high risk' by the banks. There is a company that picks up the slack for the banks but at a premium, so we had to pay nearly $400 for a survey so the bank could see the house was worth it and got the mortgage but for 1% above the normal rate. We had put in our EOI and been picked from the pool just before we left the UK so knowing that PR wasn't far off, we were able to arrange to have the mortgage fixed for 6 months so that by the time PR was through we'd be able to get off the high interest rate and hopefully get a more reasonable longer term fixed rate. We also had to pay just over $3,000 as a high lending supplement because it was a 94% loan. These were all costs we hadn't thought and it took quite a chunk out of our little egg cup.
The really stupid thing was that what we had asked to borrow was a lot less ($50k less!) than the banks were willing to lend overall based on our income! It was ratio of loan/deposit that caused the problem. When it was all done and we were signing the paperwork at the solicitors (which, incidentally cost $900 for a really straight forward transaction as vendors had already moved out to house they'd built and were using the same solicitors firm as us!) we notice a figure of nearly $100,000 over the absolute maximum the banks had offered to lend in the first place. We asked the solicitor what this figure was and she said that was the total amount the bank would lend us now the house was ours!!!
So we'd paid over the odds for what?
It is still a much better system than the long drawn out stressful process in the UK and you know from the start if the house is yours, then do the paperwork.
I rang NZIS Cch a couple of weeks ago to see what was happening to our ITA as we hadn't received it. They said there was a backlog of 700. Our medicals and police checks were due to run out 16 July. I explained this to them and the next day our consultant had received the invitation pack. We got the final bits of paperwork together and the ITA together with $800 was submitted by our consultant on Friday 13 July! We got PR the following week and paid the $1200 for it. We believe the cost for putting in an ITA has now gone up from $800 to $1500 for applications after 30 July.
We are waiting to hear back from the bank if we can get out of the 6 months really high fixed rate early.
But at least we're back on the property ladder and our house has already increased in value.
We're in beautiful Rangiora and loving it.
We have a house with 4 double bedrooms, a fab garden, stream and hot tub, and a huge rumpus room and double garage. The main living area has a log burner but we've had 2 heat pumps installed, cost $7,300 as difficult fits and top end units so worth it in our opinion. There is no way we could have afforded what we have here in the UK and the kids still run around the house now spinning round shouting 'space'! We think they like it here too 
This is only our experience but it may be of use to some. Only been here 9 weeks so still very green really!
Came out on 30 month WTR visas. Put in for these 2 weeks before we were due to complete on house and fly out to Cch. Got them back in a week. Didn't plan to leave it so late, that's just how it worked out.
If we'd have had longer time scale before OH had to start work here, we would definitely have put in for PR from the UK. This is mainly because we barely had an egg cup full of money (not enough to fill a pot) and so not a vast amount to put down as a deposit for a house. Renting was never an option for us as it's just dead money. We wanted to start our new life here as quickly as possible and get settled. We had 2 weeks in a motel in Cch (paid for by OH's employer). We were lucky enough to find a house in the first week and moved in at the end of the second week.
Getting the mortgage was a shock. Because we didn't have PR or enough money for a large deposit, we needed a 94% mortgage. We were classed as 'high risk' by the banks. There is a company that picks up the slack for the banks but at a premium, so we had to pay nearly $400 for a survey so the bank could see the house was worth it and got the mortgage but for 1% above the normal rate. We had put in our EOI and been picked from the pool just before we left the UK so knowing that PR wasn't far off, we were able to arrange to have the mortgage fixed for 6 months so that by the time PR was through we'd be able to get off the high interest rate and hopefully get a more reasonable longer term fixed rate. We also had to pay just over $3,000 as a high lending supplement because it was a 94% loan. These were all costs we hadn't thought and it took quite a chunk out of our little egg cup.
The really stupid thing was that what we had asked to borrow was a lot less ($50k less!) than the banks were willing to lend overall based on our income! It was ratio of loan/deposit that caused the problem. When it was all done and we were signing the paperwork at the solicitors (which, incidentally cost $900 for a really straight forward transaction as vendors had already moved out to house they'd built and were using the same solicitors firm as us!) we notice a figure of nearly $100,000 over the absolute maximum the banks had offered to lend in the first place. We asked the solicitor what this figure was and she said that was the total amount the bank would lend us now the house was ours!!!
So we'd paid over the odds for what?It is still a much better system than the long drawn out stressful process in the UK and you know from the start if the house is yours, then do the paperwork.
I rang NZIS Cch a couple of weeks ago to see what was happening to our ITA as we hadn't received it. They said there was a backlog of 700. Our medicals and police checks were due to run out 16 July. I explained this to them and the next day our consultant had received the invitation pack. We got the final bits of paperwork together and the ITA together with $800 was submitted by our consultant on Friday 13 July! We got PR the following week and paid the $1200 for it. We believe the cost for putting in an ITA has now gone up from $800 to $1500 for applications after 30 July.
We are waiting to hear back from the bank if we can get out of the 6 months really high fixed rate early.
But at least we're back on the property ladder and our house has already increased in value.
We're in beautiful Rangiora and loving it.
We have a house with 4 double bedrooms, a fab garden, stream and hot tub, and a huge rumpus room and double garage. The main living area has a log burner but we've had 2 heat pumps installed, cost $7,300 as difficult fits and top end units so worth it in our opinion. There is no way we could have afforded what we have here in the UK and the kids still run around the house now spinning round shouting 'space'! We think they like it here too
Jul 30th 2007, 11:45 pm
#2
Joined: Nov 2006
Posts: 2,813
Re: OUR MORTGAGE ON WTR
Congratulations on moving into your own house. Well done!
Jul 31st 2007, 4:39 am
#3
NZ ways is best ways :0)
Joined: Oct 2006
Location: Christchurch, NZ
Posts: 1,109
Re: OUR MORTGAGE ON WTR
The whole house buying system sure is different but so so easy. As for TeamEmbo's gaff - I intend to be back up there sharpish cos it is LOVELY! 
Come out with a decent deposit, and the banks are falling over themselves to offer you $$$$'s.
From the UK though, you will be stunned at the interest rates here. Westpac (www.westpac.co.nz) currently offer 9.25 fixed over 25 months.
Makes my old UK 0.75% above base tracker mortgage look awfully attractive to me now!
Ah well, swings and roundabouts as investment account rates of 8%+ sure make saving a good option! Not that we're managing much of that at present, but never mind eh?
Come out with a decent deposit, and the banks are falling over themselves to offer you $$$$'s.
From the UK though, you will be stunned at the interest rates here. Westpac (www.westpac.co.nz) currently offer 9.25 fixed over 25 months.
Makes my old UK 0.75% above base tracker mortgage look awfully attractive to me now! Ah well, swings and roundabouts as investment account rates of 8%+ sure make saving a good option! Not that we're managing much of that at present, but never mind eh?
Jul 31st 2007, 7:41 am
#4
TeamEmbo
Thread Starter
Joined: Jan 2007
Location: Rangiora
Posts: 1,557
Re: OUR MORTGAGE ON WTR
Yep, the banks here are so helpful and friendly and approachable. Nothing seems to be too much trouble and all that we've dealt with so far (Kiwibank, BNZ, ANZ) just have this real 'can do' attitude. It is so refreshing to get customer service from a bank that realises it is YOUR money, not theirs!! We wouldn't have had any problems at all if we'd have had PR or a decent deposit, but then you can't have everything can you 
The whole process from making an offer to moving in took 6 working days, even the surveyor turned out on the bank holiday Monday for us! So much better than 3 months of hoping and praying it'll all get to completion!
And thanks Wiz'n'Toni, glad you like the place, you're welcome anytime. xx
The whole process from making an offer to moving in took 6 working days, even the surveyor turned out on the bank holiday Monday for us! So much better than 3 months of hoping and praying it'll all get to completion!
And thanks Wiz'n'Toni, glad you like the place, you're welcome anytime. xx
Jul 31st 2007, 9:06 am
#5
BE Forum Addict
Joined: Apr 2005
Location: Beachlands, East Auckland
Posts: 2,957
Re: OUR MORTGAGE ON WTR
Sounds like you are getting sorted. Your house sounds really nice... glad your kids like it too. Its so nice having some space.... we know that if we went back to UK we'd never have a house as big as this one.... in fact at the moment we probably wouldnt even be able to get back on the UK property ladder. Hey, do you like your hot-tub?? Arnt they nice? We had one in our rental last year and then when we bought this house you can guess what we put in the garden as soon as we could.
We had one in our rental last year and then when we bought this house you can guess what we put in the garden as soon as we could.
Jul 31st 2007, 9:50 am
#6
BE Forum Addict
Joined: Oct 2005
Location: Rotorua, NZ
Posts: 1,070
Re: OUR MORTGAGE ON WTR
Hi All
This is only our experience but it may be of use to some. Only been here 9 weeks so still very green really!
Came out on 30 month WTR visas. Put in for these 2 weeks before we were due to complete on house and fly out to Cch. Got them back in a week. Didn't plan to leave it so late, that's just how it worked out.
If we'd have had longer time scale before OH had to start work here, we would definitely have put in for PR from the UK. This is mainly because we barely had an egg cup full of money (not enough to fill a pot) and so not a vast amount to put down as a deposit for a house. Renting was never an option for us as it's just dead money. We wanted to start our new life here as quickly as possible and get settled. We had 2 weeks in a motel in Cch (paid for by OH's employer). We were lucky enough to find a house in the first week and moved in at the end of the second week.
Getting the mortgage was a shock. Because we didn't have PR or enough money for a large deposit, we needed a 94% mortgage. We were classed as 'high risk' by the banks. There is a company that picks up the slack for the banks but at a premium, so we had to pay nearly $400 for a survey so the bank could see the house was worth it and got the mortgage but for 1% above the normal rate. We had put in our EOI and been picked from the pool just before we left the UK so knowing that PR wasn't far off, we were able to arrange to have the mortgage fixed for 6 months so that by the time PR was through we'd be able to get off the high interest rate and hopefully get a more reasonable longer term fixed rate. We also had to pay just over $3,000 as a high lending supplement because it was a 94% loan. These were all costs we hadn't thought and it took quite a chunk out of our little egg cup.
The really stupid thing was that what we had asked to borrow was a lot less ($50k less!) than the banks were willing to lend overall based on our income! It was ratio of loan/deposit that caused the problem. When it was all done and we were signing the paperwork at the solicitors (which, incidentally cost $900 for a really straight forward transaction as vendors had already moved out to house they'd built and were using the same solicitors firm as us!) we notice a figure of nearly $100,000 over the absolute maximum the banks had offered to lend in the first place. We asked the solicitor what this figure was and she said that was the total amount the bank would lend us now the house was ours!!! So we'd paid over the odds for what?
It is still a much better system than the long drawn out stressful process in the UK and you know from the start if the house is yours, then do the paperwork.
I rang NZIS Cch a couple of weeks ago to see what was happening to our ITA as we hadn't received it. They said there was a backlog of 700. Our medicals and police checks were due to run out 16 July. I explained this to them and the next day our consultant had received the invitation pack. We got the final bits of paperwork together and the ITA together with $800 was submitted by our consultant on Friday 13 July! We got PR the following week and paid the $1200 for it. We believe the cost for putting in an ITA has now gone up from $800 to $1500 for applications after 30 July.
We are waiting to hear back from the bank if we can get out of the 6 months really high fixed rate early.
But at least we're back on the property ladder and our house has already increased in value.
We're in beautiful Rangiora and loving it. We have a house with 4 double bedrooms, a fab garden, stream and hot tub, and a huge rumpus room and double garage. The main living area has a log burner but we've had 2 heat pumps installed, cost $7,300 as difficult fits and top end units so worth it in our opinion. There is no way we could have afforded what we have here in the UK and the kids still run around the house now spinning round shouting 'space'! We think they like it here too
This is only our experience but it may be of use to some. Only been here 9 weeks so still very green really!
Came out on 30 month WTR visas. Put in for these 2 weeks before we were due to complete on house and fly out to Cch. Got them back in a week. Didn't plan to leave it so late, that's just how it worked out.
If we'd have had longer time scale before OH had to start work here, we would definitely have put in for PR from the UK. This is mainly because we barely had an egg cup full of money (not enough to fill a pot) and so not a vast amount to put down as a deposit for a house. Renting was never an option for us as it's just dead money. We wanted to start our new life here as quickly as possible and get settled. We had 2 weeks in a motel in Cch (paid for by OH's employer). We were lucky enough to find a house in the first week and moved in at the end of the second week.
Getting the mortgage was a shock. Because we didn't have PR or enough money for a large deposit, we needed a 94% mortgage. We were classed as 'high risk' by the banks. There is a company that picks up the slack for the banks but at a premium, so we had to pay nearly $400 for a survey so the bank could see the house was worth it and got the mortgage but for 1% above the normal rate. We had put in our EOI and been picked from the pool just before we left the UK so knowing that PR wasn't far off, we were able to arrange to have the mortgage fixed for 6 months so that by the time PR was through we'd be able to get off the high interest rate and hopefully get a more reasonable longer term fixed rate. We also had to pay just over $3,000 as a high lending supplement because it was a 94% loan. These were all costs we hadn't thought and it took quite a chunk out of our little egg cup.
The really stupid thing was that what we had asked to borrow was a lot less ($50k less!) than the banks were willing to lend overall based on our income! It was ratio of loan/deposit that caused the problem. When it was all done and we were signing the paperwork at the solicitors (which, incidentally cost $900 for a really straight forward transaction as vendors had already moved out to house they'd built and were using the same solicitors firm as us!) we notice a figure of nearly $100,000 over the absolute maximum the banks had offered to lend in the first place. We asked the solicitor what this figure was and she said that was the total amount the bank would lend us now the house was ours!!!
So we'd paid over the odds for what?It is still a much better system than the long drawn out stressful process in the UK and you know from the start if the house is yours, then do the paperwork.
I rang NZIS Cch a couple of weeks ago to see what was happening to our ITA as we hadn't received it. They said there was a backlog of 700. Our medicals and police checks were due to run out 16 July. I explained this to them and the next day our consultant had received the invitation pack. We got the final bits of paperwork together and the ITA together with $800 was submitted by our consultant on Friday 13 July! We got PR the following week and paid the $1200 for it. We believe the cost for putting in an ITA has now gone up from $800 to $1500 for applications after 30 July.
We are waiting to hear back from the bank if we can get out of the 6 months really high fixed rate early.
But at least we're back on the property ladder and our house has already increased in value.
We're in beautiful Rangiora and loving it.
We have a house with 4 double bedrooms, a fab garden, stream and hot tub, and a huge rumpus room and double garage. The main living area has a log burner but we've had 2 heat pumps installed, cost $7,300 as difficult fits and top end units so worth it in our opinion. There is no way we could have afforded what we have here in the UK and the kids still run around the house now spinning round shouting 'space'! We think they like it here too You expect stumbling blocks but hopefully now your in your dream home, things should go swimmingly.
Congrats
Jul 31st 2007, 10:09 am
#7
you dewty owld maan!
Joined: Oct 2005
Location: is practically perfect in every way
Posts: 5,565
Re: OUR MORTGAGE ON WTR
The whole house buying system sure is different but so so easy. As for TeamEmbo's gaff - I intend to be back up there sharpish cos it is LOVELY!
Come out with a decent deposit, and the banks are falling over themselves to offer you $$$$'s.
From the UK though, you will be stunned at the interest rates here. Westpac (www.westpac.co.nz) currently offer 9.25 fixed over 25 months. Makes my old UK 0.75% above base tracker mortgage look awfully attractive to me now!
Ah well, swings and roundabouts as investment account rates of 8%+ sure make saving a good option! Not that we're managing much of that at present, but never mind eh?
Come out with a decent deposit, and the banks are falling over themselves to offer you $$$$'s.
From the UK though, you will be stunned at the interest rates here. Westpac (www.westpac.co.nz) currently offer 9.25 fixed over 25 months.
Makes my old UK 0.75% above base tracker mortgage look awfully attractive to me now! Ah well, swings and roundabouts as investment account rates of 8%+ sure make saving a good option! Not that we're managing much of that at present, but never mind eh?
Secondly, and more importantly, shock horror, NZ property is over-valued and so there is a very good chance of a decent adjustment in the market here - news today said NZ is 4th (or was it 2nd) on the most-overvalued property in the world stakes....ooopps: ah here it is:
http://www.nzherald.co.nz/topic/stor...ectid=10454821
Good luck to all with a toe in the property market here but be careful and dont believe all the real estate agent's hype over how much stuff is appreciating, take it with a grain of salt, that's my 2cents.
Jul 31st 2007, 10:21 am
#8
TeamEmbo
Thread Starter
Joined: Jan 2007
Location: Rangiora
Posts: 1,557
Re: OUR MORTGAGE ON WTR
Yep, too right it's overpriced! But if you stick to your guns the lovely Real Estate guys do start showing you stuff you can actually afford, and put in whatever offer YOU think is reasonable if you like/want a particular house regardless of what the Real Estate agents say.
We offered $25k less than the asking price and had it accepted. Like I said we had to have a survey done and the house was valued at just $3k more than our offer. (The surveyor btw was independent of the bank and real estate agent).
Don't feel pressured into paying the full asking price unless you're 100% totally sure it's a bargain too good to be missed.
But if you stick to your guns the lovely Real Estate guys do start showing you stuff you can actually afford, and put in whatever offer YOU think is reasonable if you like/want a particular house regardless of what the Real Estate agents say.We offered $25k less than the asking price and had it accepted. Like I said we had to have a survey done and the house was valued at just $3k more than our offer. (The surveyor btw was independent of the bank and real estate agent).
Don't feel pressured into paying the full asking price unless you're 100% totally sure it's a bargain too good to be missed.
