That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
5 Epic Home Loan Fails Every Kiwi Should Avoid
Mortgage mistakes can cost you thousands, and unfortunately, there are so many ways Kiwis keep stumbling into these financial traps. Welcome back to part two of our deep dive into the epic mortgage fails we see every day as advisors.
Ever fixed your mortgage for five years only to discover you need to sell or refinance? Those break fees can be brutal. Or perhaps you've "forgotten" to mention a couple of credit cards when applying for a loan? The banks' sophisticated credit checks will find everything, and that character mark against you can be difficult to overcome. Then there's the popular "interest-only forever" strategy that leaves homeowners with no equity building except through market increases—a precarious position if property values decline.
DIY mortgage applications might seem straightforward, but without expert guidance, you're likely submitting incomplete documentation to the wrong lenders. And that shiny new car purchase right before mortgage application? It could slash your borrowing power by tens of thousands, forcing you to compromise on your dream home.
Each of these mistakes comes with real consequences: delayed approvals, higher costs, reduced options, and unnecessary stress. But they're all avoidable with the right advice and timing. As mortgage advisors, we've seen these scenarios play out repeatedly, and we've helped countless Kiwis navigate around these pitfalls.
Whether you're a first-home buyer or a seasoned property investor, understanding these common mistakes can save you significant money and heartache. Take a pause before making major financial decisions when property purchase is on the horizon, and consider reaching out for professional guidance. Remember, the right mortgage structure isn't just about getting approved—it's about creating a financial foundation that supports your lifestyle and future goals without unnecessary restrictions or expenses.
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Dumb stuff Kiwis do with home loans. Again, more epic mortgage fails and how to avoid them. Welcome back, it's your mortgage mate, zibuniso. And yep, we're doing it again Another round of mortgage mistakes that make us laugh, cry or pour another coffee or wine. This is part two of the dumb stuff Kiwis do with home loans, because apparently one episode wasn't enough. Look, we're not here to judge, but if you see yourself in any of this, take it as a loving nudge to get your mortgage life together.
Speaker 1:Fail number one I fixed for five years and now I'm stuck. Some people panic when the rates go up and rush to fix for the longest term possible, like five years, without thinking about their future plans. What went wrong? Now they're stuck with huge break fees if they want to sell, refinance or restructure. So what can you do to avoid this? Think about flexibility. Talk to your advisor about your one to three year life plans before locking in. That would be a smart decision to do.
Speaker 1:All right, let's look at fail number two I told the bank I have no debt except my three credit cards and a car loan. Look, lenders don't appreciate surprises. Forgetting to disclose debts doesn't make them disappear, because guess what? Everything is clear now on your credit checks, and every single lender runs a credit check. So what went wrong in this one? Approval delays, trust issues with the bank and sometimes it can be a full decline after discovery, because one of the five C's that you get judged on is character. So if your character is not telling the truth, the bank may not trust you again. So how can you avoid it? Be upfront, your advisor will help present your application in the best possible light, but we do need the full story.
Speaker 1:Now let's look at fail number three Interest only forever. Because YOLO, this one made me laugh. Look, using interest only as a lifestyle tool for years was no plan to switch back to principal and interest. What can go wrong? No equity build up, you're just relying on capital gains, and it's a bigger risk if house prices drop, plus a rude awakening when the banks eventually say no more. So how can you avoid it? Have an exit strategy. Use interest only for a purpose, so short-term cash flow relief or investment reasons, not a forever solution. And remember when things do go downhill and if you do need to rely on interest only. But if you're already on interest only, you can't. So be clever about when you want to use that option. Now fail.
Speaker 1:Number four DIY mortgage applications. Because who needs a broker? Right, going it alone sounds brave, until you submit half-baked documents, pick the wrong bank and miss out on better deals. So what went wrong in this one? Multiple declines, wasted credit checks, burnt relationship with banks. Again, when you go to an advisor, they will know what's the best possible lender for you out there. So how can you avoid it? Use an advisor. Hello, that's us, and we know the game. We know the banks, we know how to package your deal right the first time. Yes, it may take a little bit longer through us, but at least you know the outcome you will get will be the best one for your situation. Now fail.
Speaker 1:Number five I bought that fancy car two months before applying for a mortgage. Hmm, new car, new debt, new problem with your debt to income ratio. So what went wrong this couple? They wiped out the borrowing power and now they can't buy the house they really truly want and they have to look elsewhere or reduce their expectations. So how can you avoid it? If you're even thinking about buying a house soon, please pause the car shopping. Let's get that home loan sorted first, and then, after you bought your home, then you can start looking at a car. So there you go More classic Kiwi mortgage mistakes. If any of this hit a little too close to home, don't stress. That's why we're here to help you avoid the fails and get the wins. Catch you next time.
