Experienced financial advisor Stephen Robertson’s regular My Money column offers practical advice and solutions to help people manage their finances.
- By Stephen Robertson, Financial Adviser
When it comes to home loans, not all banks view your position the same.
They all view and assess your application in different ways.
Things like self-employed income, bonuses or rental income may be treated differently which can affect the amount you can borrow.
These tools and calculations differ across all banks. For example, let’s take the stress test.
If one bank has a stress test rate of 8.5 per cent and another has a stress test rate of 8.95 per cent then you may have a better chance at the bank with the lower stress test rate.
They don’t publish their test rates so you’re best to talk to your mortgage adviser.
When it comes to assessing your borrowing power, the banks have different criteria and guidelines they must follow, and their calculators are set up based on this criteria.
The differences can be significant and you may be cutting yourself short by nearly $150,000.
This could be the difference between securing the property you want or not.
So how do you know if you are getting the most out of your borrowing power?
You really need to be casting the net far and wide and looking at what every bank has to offer.
This is where having a mortgage adviser in your corner really counts.
Not only do you get all the relevant options available to you across various lenders, but we can run the calculations for you so you are maximising your borrowing power and getting the best option available for you.
From navigating the lending landscape, to packaging and presenting your home loan application to the lender in the best possible light, we are here to support you every step of the way.
If you would like some advice around your particular situation then please don’t hesitate to reach out.
Stephen Robertson
Financial Adviser
P: 09 377 4433 | M: 0275 408 900
E: stephen@mymoney.net.nz
W: www.mymoney.net.nz
