Wayne Henry Mortgages

COVID-19 June Update

Wayne Henry — Thu, 28 May 2020 00:15:18 +0000

Now that we’re at Alert Level 2, it’s a good time to figure out where you stand. Find out what is happening in the market and what lenders are looking for in the new lending environment. A lot has changed since COVID-19 and this continues to change almost on a daily basis as the full impact is not yet known.

At a minimum, most lenders will be asking a lot more questions and requesting for additional supporting information, especially around income, to ensure they continue to make responsible lending decisions.

Income

Previously, if you were receiving a salary, lenders asked for your most recent three payslips to confirm your income. Now lenders are having to assess the likelihood of you being employed in the future and need evidence of this.

Some banks have also changed their policies around flatmate/boarder income, as they want to know that your base income is enough to cover the mortgage without relying on others.

Lenders will be asking

Has your income been impacted by COVID-19? (ie. reduced income) And if so, to what percentage
If your income is not at 100%, at what level will it be back at 100%?
Are you working in an industry that is deemed high risk? (eg. Tourism, Hospitality & Retail)
Is there likely to be any future impact on your income? Potential downsizing or redundancies in the business?
If you’re relying on commissions, overtime, or bonuses as your main source of income, is this likely to continue?
If you’re receiving rental income from investment properties, you’ll need to confirm that all your tenants are up to date in their rent payments
If you’re self employed, you’ll need to provide significantly more information to confirm your income, such as - financials up to 31 March 2020, business bank statements, contracts, projections, and commentary around short, medium and long term cash flow.

Banks Affordability Assessment

When applying for a mortgage, most lenders use a “Test Rate” for affordability. This test rate varies slightly with each lender, but tends to be around the 7% mark – which is far from the interest rates currently advertised (ie. 2.69% pa).

Lenders use a higher interest rate when assessing your mortgage application, as they need to calculate for worst case scenario. If the past few months have taught us anything, it’s that things can change quickly!

This can be frustrating for home buyers, as they know in reality based on their incomes and current interest rates, they can afford a mortgage of X amount, but the lender approves a lower amount. Lenders need to ensure that they continue to make responsible lending decisions and not to put buyers at risk.

Reserve Banks Removal of LVR Restrictions

Despite the Reserve Bank announcing the removal of LVR restrictions for 12 months, most lenders have remained conservative around this. Lenders have a good reason to be cautious, as the economy is unstable and there are many people losing their jobs or having their incomes reduced, so they don’t want to give someone a loan they can’t afford to keep servicing.

However, there are now a few lenders that can approve up to 90% LVR for owner occupied properties and up to 80% LVR for investment properties. This is great for first home buyers, as it may mean their dream of owning their own home may be closer than they think as saving a 10% deposit is a lot easier than saving for 20%!

We recommend that you contact the team at Wayne Henry Mortgages to discuss your lending options if you’re wanting to purchase a property with high LVR lending.

Interest Rates at Historic Lows

Interest rates are at historic lows and they’re changing almost daily. It’s hard to keep up with all the interest rate changes, even as a Mortgage Adviser! One lender can offer 2.69% pa for 2 years while another can offer 2.95% pa for the same term. If your mortgage is expiring soon, we strongly recommend that you contact the team at Wayne Henry Mortgages as it’s our job to keep up to play with what is on offer in the market and to negotiate with your lender to get the best possible interest rate at the time.

With the low interest rates, there is the opportunity to shave years off your mortgage. If you lock in a new lower rate, but keep paying the same amount you were before, you’ll be repaying your mortgage much faster without feeling like you’re sacrificing anything.

Also with the interest rates being so low, it means that people that couldn’t previously afford a mortgage may do so now – which is great for first home buyers – just be prepared to provide additional information to support your lending application.

Contact one of the team at Wayne Henry Mortgages

The above may be confusing and it may be hard to keep up with all the changes in this new financial world post COVID-19, but this is what the team at Wayne Henry Mortgages specialise in. We can simplify the mortgage application process and provide you with options, as we have access to a wide range of lenders (including Kiwibank, where only a handful of Advisers can). We’re confident that we’ll be able to help you achieve your dream of owning your own home!

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COVID-19 Support Information

Wayne Henry — Thu, 30 Apr 2020 23:27:28 +0000

Life as we know it has been changing in this new COVID-19 world, so the team at Wayne Henry Mortgages want to assure you that we are here to help and support you during these unprecented times. Banks, governments and advisers like us appreciate that this is a once-in-a-lifetime event and everyone is jumping in to do their bit.

Please don’t hesitate to reach out to us if you would like some advice and guidance on how the banks can help and support you through this challenging time.

How your bank may help?

Deferred mortgage repayments for up to 6 months
Changing loan repayments from principal & interest to interest only
Extension of your loan term to reduce loan repayments
Waiver of loan application and top up fees
Reduction of credit card interest rates for a period of time
Reduction of interest rates on personal and business overdraft facilities for a period of time
Temporary overdraft facilities for up to 90 days
Early access to term investment funds in cases of hardship
Deferred repayments for up to 3 months for credit card or overdraft facilities

Deferred mortgage repayments vs interest only repayments

If you’re considering deferring your mortgage repayments, be aware that it’s actually a deferment where:

A: The money will either be added to your outstanding balance or
B: your mortgage term will be extended.

A better option could be for you to apply for a period of interest only repayments on your mortgage. The benefit of this is the balance of your mortgage will still be the same as it is today, at the end of the interest only period.

However for some, there may be no other option but to defer your mortgage repayments and we will be able to help you with that. To understand how the two options could look, just get in touch and we’ll run the numbers for you.

EXAMPLE:

Let’s compare the two, on a $300,000 mortgage with a 30 year term at an interest rate of 3.45% pa, your monthly repayments would be $1,339 per month.

If you deferred your repayments for 6 months, the principal portion would cease and the interest portion ($862.50 per month) would continue to be calculated and added to your balance which would be $305,175.00 at the end of the 6 months.

If you took a 6 month Interest Only period on your mortgage, your monthly repayments would drop from $1,339 per month to $862.50 per month, a saving of $476.50 per month. At the end of the Interest Only 6 months your balance would be $300,000.

For many of us, the monthly saving of $476.50 will be enough relief to keep us going and in our opinion far better than seeing your debt grow.

Important points to consider when deferring your mortgage repayments

If you are wanting to defer your mortgage repayments for up to 6 months, it is important to note the following points before committing:

You will not be making any interest repayments during the Loan Repayment Deferral period
Interest will still continue to be calculated and capitalised on to your loan each month
Because your interest will be accumulating on to your loan, this will also mean you may be paying more interest
Your loan balance will each increase each month as the interest is calculated and charged to your loan

Bank support contact channels

Everyday 6am – 12am midnight

www.anz.co.nz/here-to-help

Everyday 8.30am – 5pm

www.asb.co.nz/covid-19.html

8am – 8pm Monday to Friday
9am – 6pm weekends

www.bnz.co.nz/contact/covid-19-update

Mon to Thur 7am – 9pm, Fri 7am – 8pm and weekends 8am – 4.30pm

www.kiwibank.co.nz/contact-us/support-hub/coronavirus-updates

7am – 8pm Monday – Friday
8am – 5pm Weekends

www.westpac.co.nz/who-we-are/covid-19

Government wage support

Impacted businesses can access a wage subsidy of $585 a week per full-time employee and $350 a week per part-time employee for up to 12 weeks at a cost of up to $9.1 billion.

To qualify businesses need to commit to continue to employ staff and pay them 80% of their current wage, show they have suffered or project to suffer a 30% or more reduction in revenues and have taken steps to mitigate the impact of COVID-19 on their business.

The initial $150,000 cap was removed which means basically every impacted business will be covered, enabling them to support their workers.

Government support for businesses

Tax changes

The Government has announced $2.8 billion in business tax changes to free up cashflow, including a provisional tax threshold lift, the reinstatement of building depreciation and writing off interest on the late payment of tax.

Sick leave and isolation support

$126 million has been allocated to support staff to take sick leave for self-isolation, or stay home when sick with COVID-19.

Aviation support package

$600 million has been targeted to support the aviation sector.

The Business Finance Guarantee Scheme

A $6.1 billion scheme allowing qualifying businesses to borrow up to $500,000 for a maximum of 3 years has been launched. Banks will be expected to provide these loans at competitive rates. The Government will carry 80% of the credit risk, with the other 20% to be carried by the bank.

A remote-ready expert on your side

Questions? Plans? Don’t hesitate to call, Skype or Zoom the team. We are fully digitally enabled, so every part of the process can be completed online and over the phone, without a face-to-face appointment.

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First Home Buyers Tips

Wayne Henry — Sat, 25 Apr 2020 02:12:26 +0000

Buying your first home can be tricky without help. That’s where we come in. Our focus is on making sure the house buying process runs as smooth as possible for you. We’ll help you prepare all the necessary information to get you in the perfect position to secure that dream home. So let’s get started…

Getting your deposit together

Most lenders require a minimum deposit for a home loan of at least 20% of the house price. So if you’re buying a house worth $600,000 you’ll need to save a deposit of at least $120,000. However there can be some exceptions, such as through the Kāinga Ora – First Home Loan Scheme for first home buyers, which would require a deposit of 5%.

Keep in mind that the bigger your deposit, the less you’ll pay in interest over the long term. Loans that are for more than 80% of a property’s value tend to have higher charges – as there is more risk for the lender. These charges can vary a lot. Some banks charge for lenders mortgage insurance while others increase the interest rate to cover the risk.

Kāinga Ora - First Home Loan

Kāinga Ora – First Home Loans are issued by selected banks and other lenders, and underwritten by Kāinga Ora. This allows the lender to provide loans that would otherwise sit outside their lending standards. As well as having a 5% deposit, you need to meet certain criteria including an income cap and regional house price cap. You will also need to meet the speciﬁc lending criteria of the participating lender you choose. Find out if you are eligible and how to apply via: First Home Loans.

Kāinga Ora - Home Start Grant

If you’re a first-time home buyer, or a previous home owner and you’ve been making regular KiwiSaver contributions for 3 – 5 years, you may be eligible for a First Home Grant of up to $10,000. Find out more information and apply for the grant via: Home Start Grant.

KiwiSaver - First Home Savings Withdrawal

If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. Eligible members can withdraw their KiwiSaver savings (including tax credits). However at least $1,000 must remain in their KiwiSaver account. Also, you must intend to live in the property and it cannot be used to buy an investment property. Find out more information and apply for the withdrawal via: First Home Savings Withdrawal

Family Bank

The easiest and cheapest way to buy your first home is by using your family or parents to guarantee that part of your 20% deposit that you don’t have.

Their guaranteed portion will be secured over their property or it can be secured over a term deposit, so you’re not asking them to fork out cash, it’s more like putting a ‘hold’ on their existing equity until you’ve paid that portion back.

In the event they use a term deposit as security, the term deposit stays in your parent’s name and they continue to earn interest on it. Guaranteed home loans are treated the same as loans under 80% so you get great interest rates, there are no fees, and you’ll even get a cash contribution from the bank.

What can you afford?

The amount you can afford for a home depends on a couple of things: how much you can afford to repay on your current income, and how much a lender will lend on a property. It’s essential to plan a budget and work out how much you are able to pay back on your loan. Lenders want to be sure that you’ll be able to keep up with your repayments and still have enough money left over to live on.

Budget planning

To find out what your budget is you’ll need to get a realistic picture of your finances, i.e. your income vs your spending, and weigh this up against the deposit you’ve saved for your first home. For help with your budget, check out our handy online Budget Planner.

Loan repayments

Our easy to use Loan Repayments Calculator lets you see what your repayments could be. Easily change the amount you borrow and the length of time you want to have the loan for. Simply adjust the sliders and find a repayment amount to suit your budget. Try it out now: Loan Repayments Calculator

Securing Pre-approval

Pre-approval is a lender telling you that they’re prepared to loan you money, providing you meet a few conditions – usually around the value of the house you want to purchase. Getting a pre-approval makes it easier to house-hunt as you know just how much money you’ll be able to borrow. That’s where we come in. We can help you get pre-approval for your loan, and going through us means you’ll be more likely to be approved and probably get a better deal. Going through a single lender means they’ll only offer you their solution, whereas we can shop around and make sure you secure the right loan for your needs. The pre-approval process requires that you supply a variety of paperwork and disclose your financials – but don’t worry we’re here to help you gather and prepare all the necessary information.
Contact us to get things started.

How to buy your first home

Once you have pre-approval in place from the lender there are many ways to buy property in New Zealand. Although auctions are still quite common, you may also make your purchase through negotiation, tender or a private sale. When you’re happy with a place and you want to buy, you’ll need to sign a Sale and Purchase Agreement. This is the legal contract between the buyer and seller where you can insert your own purchase conditions such as:

Lawyers & contracts

We strongly recommend that you get your lawyer (or solicitor) involved as early as possible. Your lawyer is responsible for the conveyancing (i.e. the change of ownership paperwork) and can also be a useful advisor. Your lawyer will:

Deal with the Sale and Purchase Agreement
Deal with the seller's lawyer to ensure all of the conditions relating to the sale have been met
Advise you on any legal issues
Manage the possession, settlement process and manage the exchange of money and keys, as agreed between you and the seller
Advise your council of the change of ownership and arrange for the apportionment of local rates charges between the buyer and seller

Building inspections and valuations

Once you’ve signed a Sale and Purchase Agreement we recommend you arrange a building inspection and valuation and have these available for you before going unconditional. A valuation can cost between $600 – $1,000 and a building inspection can cost from $250 for a verbal report to $650 for a written report. So if you’ve got a qualified friend/family member you can trust, get them to give you an informal report to save some cash. Note that any plaster homes should have a full report completed and we recommend you don’t rely on a report provided by the vendor.

What is a LIM report?

A LIM report is prepared by the council and is based on its property records. It will tell you whether or not the property has the right consents and a code of compliance. You’ll have to order a LIM report from your Council, which will cost around $250-$350. It often takes up to 10 days to get it too, so order as soon as you’ve signed the Sale and Purchase Agreement.

When is the deposit paid?

In a standard property sale, the home deposit has to be paid when you exchange the signed copies of the Sale and Purchase Agreement with the seller (“vendor”), after your offer has been accepted. If you buy at auction, you will sign the contract and pay a deposit (usually 10%) on the spot.

Frequently asked questions

You’ve probably got a lot of questions. Here are some that we answer most often:

Will I be able to get a loan?

Most likely. Lending criteria is different from bank to bank so we’ll help you shop around for the best deal. If you go directly to your bank you’ll have less chance of securing the
right loan (or any at all) because they can only give you one solution.

How much can I borrow?

This is dependant on a number of things like: How much deposit you have, your income, and your ability to repay your home loan after you’ve paid your outgoings. Check out our Loan Repayments Calculator to see how much you could borrow.

What paperwork is required?

Quite a bit, but we’re here to help and will try to reduce it for you. First you have to fill out a form with all your assets, debts, income and expenses. You’ll need to prove your income, that you have a deposit saved and three months of bank statements. Remember, the bank might also run credit checks.

How much does it cost to use mortgage adviser?

Our services are FREE – The lender pays us so you don’t have to.

Why use a mortgage broker at all? Why not just go straight to the bank?

Great advice and a ton of experience. We’re here to help you through the entire buying process (not just the mortgage). If you like nothing more on a weekend than to pore over interest rate updates, decipher mortgage jargon and scroll through bank T&Cs, then you won’t need a broker. But if you’d rather spend that time with your feet up, we can help. As mortgage advisers we have more options available to us when it comes to finding a mortgage solution. By only talking to one lender you are potentially selling yourself short and getting a poor deal.

How fast is it to get finance?

It normally takes less than three days to arrange finance but it pays to get organised ahead of time. Every now and then, the banks can be a bit slow, especially if the mortgage is over 80% of the property’s value. So, if you are borrowing over 80%, allow for 5-7 working days to get an approval. Bottom line is, the earlier you talk to us and get things rolling the easier it’ll be for all.

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Are you covered?

Karen Henry — Sat, 25 Apr 2020 01:45:32 +0000

Ensuring our clients are protected is such an important step in our home loan process. Far too many Kiwis float through life unprepared for a possible interruption – be it an accident, an illness, or something more tragic.

Ask yourself:
“Would I still be able to afford my mortgage or medical expenses if I was unable to earn an income in the future?” If the answer is no, then we can help.

That’s why we have joined forces with Partners Life, who are all about getting everyday Kiwis covered and covered properly. They share the same values as us, which is the reason why we’ve chosen to work closely with them, so that together we can make sure that if the unexpected were to happen you are well and truly sorted.

The Products

If you are interested in further product details, or want to discuss which products might be right for you, your family or your business, please get in touch with us.

Life Cover, Life Income Cover and Terminal Illness Cover
Trauma Cover and Severe Trauma Cover
Income Cover, Mortgage Repayment Cover and Household Expenses Cover
Total and Permanent Disability Cover
Private Medical Cover
Specific Condition Cover and Hospital Cash Cover

Our Made to Measure Advice

When it comes to life insurance, a ‘one-size-fits-all’ approach just won’t cut it. We tailor insurance specifically to you. We take the time to learn about what’s important in your life, as well as help you to understand your financial risks. Our made to measure advice helps gives you the very best chance to getting your claims paid quickly without any unforeseen road bumps.

We Will:

Provide a free consultation with no strings attached

Offer independent advice about insurance providers and costs

Make sure you get the insurance that’s right for you

Ensure you only pay for what you need (and no more)

Humble Beginnings

Partners Life are proud to be a New Zealand operated company. Like many Kiwi companies, they began with humble beginnings as a small start-up in 2011. Since then, they have become a recognised industry leader in life and health insurance, with a focus on protecting Kiwi families and businesses. Find out more about Partners Life or contact us to find out how we can provide peace-of-mind.

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Need a Small Business Loan?

Wayne Henry — Tue, 07 Apr 2020 01:27:12 +0000

As a start-up ‘small business’ ourselves, we know how tough it can be to get your dream on the right track. The journey for us has been tricky, to say the least, but with the right attitude and a strong support network, you too can realise the goal of successfully running your own Small Business.

That’s why we have partnered with Prospa, more than just an award winning lender, a company that have a vision to change the way small business owners experience finance. No more missing opportunities or scraping through. Together we can help you access funds for growth opportunities and cash flow support in a fraction of the time and without all the fuss.

With Prospa, applications and decisions are fast, with funding possible within 24 hours.*

Typical loan uses

Purchase stock or inventory

Expand and renovate

Run a marketing campaign

Buy or upgrade equipment

Manage cash flow

Hire more staff during busy periods

Meet tax obligations

Repair vehicles and machinery

Features

Amount $5,000 – $100,000
Terms 3 – 24 months
Repayments daily or weekly
Competitive rates and transparent pricing
Origination fee 2.5%
Asset security not required to access up to $100,000

Benefits

Criteria & requirements

Income of $6,000+ per month
Trading for 24+ months (or purchased an existing business 3+ months ago)
Loans up to $100,000 require driver licence, NZBN and 6 months of bank statements
Loans over $100,000 require some additional financial statements (P&L, aged payables and receivables)

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Selected as a NZ Blue Light Ambassador

Wayne Henry — Tue, 24 Mar 2020 00:21:15 +0000

I was lucky enough to be selected as a NZ Blue Light Ambassador (along with a number of other people) and was tasked with the challenge of raising $10k in donations for NZ Blue Light. After a successful sponsorship trail, I was selected to head away on a life-changing ‘mystery’ adventure while being filmed for a New Zealand TV series called “Adventure All Stars”

The inaugural New Zealand series “Adventure All Stars” consists of 6 x one-hour episodes and is available to watch on TVNZ on-demand. Watch my episode here: Adventure all Stars, Episode 03.

NZ Blue Light is a charity close to my heart as they deliver a range of youth programmes and activities in partnership with the NZ Police in order to meet the needs of the communities that they work in. Most people remember them for running discos in the 80’s & 90’s, Blue Light has evolved over the past 35 years and now do so much more to support young New Zealanders.

Day 1

Today is the first day that myself and a number of other people embark on a life changing ‘mystery trip’ with Charity TV Global and NZ Blue Light. At this stage we have collectively raised around $85,000.

We soon discovered that day one involved us sailing on Sir Peters boat to Waiheke Island with the awesome crew from NZ Sailing Trust. Once we were boarded and settled, it was time for our group to take control of the wheel and having a go getting from A to B! Lucky for us we nailed it and ended up anchoring on a secluded beach on Waiheke Island where it was time to get into groups and to build some rafts that had to stay afloat… nothing like some good friendly competition to keep everyone entertained!

Day 2

After sleeping overnight on Sir Peters boat, it was a VERY early start for day two! I’m pretty sure it was 3am when I felt the boat moving – we were back in Auckland city at 5am to make our way to Rotorua….. to discover that we were going white water rafting with the awesome team from Kaitiaki Adventures Aotearoa. All I can say is SIMPLY WOW! What an amazing experience white water rafting is! I would absolutely recommend doing it! We had fast rapids, stunning views and a powerful 7 metre waterfall to conquer – all of which got the heart racing!

As if that wasn’t actioned packed, our next adventure for the day, was some fun in the mud and spinning wheels in some 4×4 buggies at Adventure Playground. After these 2 action packed activities it was time to enjoy the cultural beauty of New Zealand at the Tamaki Maori Village. After sleeping the previous night on the boat, I was just happy for a proper bed and a pillow for the night!

Day 3

Today started with an epic mountain bike ride thanks to FourB Biking– starting in the forest we then made our way to the mighty Huka Falls (one of the most beautiful spots to soak up the scenery), and on the way back visited the stunning geothermal stream at Wairakei! Once the lactic acid in the legs wore off it was time to satisfy the taste buds at Huka Prawn Park– not only did the group have a delicious lunch but they even got to catch it! We figured because the group loved fishing for their lunch so much why not do it for a second time with dinner at Chris Jolly Outdoors? Buuutt this time it was trout fishing! A day full of delicious food and scenery. Hump day today, what will day 4 bring?!

Day 4

Our day involved speed, countless 360s and getting wet (AGAIN!) on the Huka Falls Jet, then off to Rainbow Springs Nature Park to see one of NZs iconic birds – the little Kiwi and then finished off with a tree walk through Redwoods.

Day 5

Our final activity was at Rotorua Canopy Tours where we were high in the treetops of an ancient forest walking on swing bridges and having fun with 600m of ziplines!!

Wow what an amazing 5 days with an awesome group of Ambassadors for NZ Blue Light! The experiences and new lifelong friendships made over this last week has been simply priceless and I’m forever grateful!

Keep an eye out for “Adventure All Stars” screening on TVNZ 2 starring ME!!! And hosted by Erin Simpson.

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