From Hello To Application

SPEAKER_00 0:10

If you're a first-time buyer, this is the episode for you. Listen up. We've had an avalanche of clients recently. I think people are feeling positive. The house prices have flattened out a little bit. Actually, slight drop in Wellington, slight drop in Auckland, slight increase in Dunedin. Okay. And Queenstown. Oh, yeah. The latest data that I've read this morning. So, but it is giving a bit of positivity to our clients. They're thinking this is the time to buy, the interest rates are still a little bit okay. So that brings us to the application process of when we first meet them and then we ask for all the documents. Take it away, Quinch.

Bank Statements And Character Checks

SPEAKER_01 0:47

Yeah. So when we first meet you, we have that, you know, discovery conversation and find out about your goals and what you want and things like that. At that time as well, we may do the application on the spot. But if you're quite savvy and tech savvy, we'll send you a link to do it. And that link basically asks you to fill in, you know, your full name, your date of birth, everything in that sense, your job, how long you've been there, or you know, where you live and how long you've lived there, sort of thing. So quite, you know, the normal basic forms that you would fill out for any type of lending application or any sort of application that you like, even applying, you know, to enroll your child into a school or something like that. So yeah, so that generally that's what we ask for. But what I have found is that what to provide us. So when we ask for bank statements, we ask for the most three months bank statements. So it's basically as of today and three months back. Yeah. But what we have found also is that some banks will only statement the statements to, you know, a certain date, and then it doesn't cover that month yet because obviously the statements haven't been statemented. So we do ask sometimes for a transactional printout as well, because some lenders are particular and they do want that type of the latest stuff.

SPEAKER_00 2:17

Because what what they're looking for as one of the C's that we've covered before is the character. They want to see that you've been good with your accounts, that you haven't been abusing by going into overdrafts and spending money you don't have. So potentially you could have the three months amazing statements, but the transaction over the last two weeks could have been shocking. So in order to in order for the lender to tick it off, they need to see the last three months. So this is why we ask. We don't ask because we want to go through and have a look what you've been spending money on too much. Yeah. I mean, that's part of our job as well. We do scan through to see what you've been spending on, but very we're not gonna be anal about it. We're not we're not gonna ask you about the eight dollars per month on what you spend on. Um crunch had a recent question from the bank where the clients were spending something eight dollars a month on.

SPEAKER_01 3:10

Eight dollars a month. I'm like, that's like less than my coffee a day.

SPEAKER_00 3:15

Yeah, yeah. So so sometimes we do get those questions, but again, the bank is not asking to be anal. It's just every dollar that they're putting into the expenses, they have to allocate it to a certain category. So if it's a category under entertainment, they just need to know where to put that eight dollars into. If it's under certain bills that are ongoing, they will just put it there. So they're not asking to be anal, and we're not asking you to be anal.

Discretionary Spend And Red Flags

SPEAKER_01 3:37

Yeah, and and then most of it is discretionary spend. So just want to reiterate because I know the clients I have met do stress out a little bit in terms of oh, don't look at my accounts because I've spent so much on food or takeaways and things like that. Those are all discretionary spending that can be, you know, reduced once you get a loan and things like that. So I wouldn't stress too much about it in terms of that, but there are, you know, particular transactions that the banks will like to understand a bit more. And one being if there are transactions to online gambling or something like that, we will need to understand that a wee bit more and we will ask questions about that.

SPEAKER_00 4:19

And sometimes we catch things that you might have forgotten to include in your application. Like sometimes people forget things like jam visa payments or some sort of personal loan that they're paying because it's only$50 a month, you know, they completely forgot about it, but it will be visible on your statements. So we will come back to and we will ask you hey, what is this about? Yeah, and even if you paid off something, but it's still on your statement, we need to know.

SPEAKER_01 4:44

Yes, and and that's what leads to us requesting for more statements. So it might seem like, oh my god, you want my blood, but it's actually because of the fact that we've scanned through your statements, we've seen, you know, what your payments are, so your liabilities that we see, which is your personal loans, your credit cards, and your buy now pay later. So those are the afterpays, the zip pays and things. So we we would need evidence of that as well.

SPEAKER_00 5:13

Yep. And the other thing I also want to remind people of is that never is a bad time to apply. Often we hear around December, January as, oh, I don't want to apply now because my statements look awful because of all the Christmas spending. Yeah, there might have been going away on holiday, there might be, you know, having visitors at home that they were entertaining a little bit extra by buying more alcohol, more food, more drinks, more takeouts. So don't worry about that. Yeah, this is seasonal. This is not gonna be ongoing. Like if you spend$3,000 that month on groceries, we're not gonna put that as an expense ongoing.

SPEAKER_01 5:50

Correct.

Kāinga Ora Requirements

Seasonal Spending Myths

SPEAKER_00 5:50

Yeah. Awesome. So we've covered the statements. The other thing that we've also come across a lot is under Kyango order first-time buyers uh policy package that we have, there are few extra documents that we need. They do require a wee bit more information to process and assess an application through one of the things we need to do is to provide evidence that you are actually a New Zealand resident or New Zealand citizen. So we might ask for birth certificate or passport. If you don't have a passport, then you know it's a birth certificate usually. For those that are immigrants to New Zealand, we may need the New Zealand permanent residency sticker. So it's just this thing to verify that you are eligible under this program. And then the other bit that uh Kyangora might require is IRD summary of earnings. Yeah. So they look back the exact 12 months of earnings because under their program you have to be under a cap of income. Yeah, income cap.

SPEAKER_01 6:46

Yeah.

SPEAKER_00 6:46

So if you're an individual, it's 95,000, and if you're a couple, it's 150,000. Or you could be an individual with a dependent. So let's say Mr. is working and Mrs. isn't, so she's now dependent, that's 150, or a solo mom was a child, that's a dependent. Solo dad, a solo dad was a child. I was trying to cover all my buses there quietly. 150k is a cap.

SPEAKER_01 7:12

Yeah.

SPEAKER_00 7:13

So just keep that in mind as well, of why we're asking for that information.

Employment, Income Caps, And Tenure

SPEAKER_01 7:17

And and that's why they asked for that 12 months, because they want to check whether you fit into that cap. And then also, although we're we will ask for your pay slips, we will need a letter from your employer as well.

SPEAKER_00 7:29

Yes, to confirm that you're actually still employed and working there.

SPEAKER_01 7:32

Because you still had the latest pay slip and latest pay going into your bank account, but you know, they just need the extra reassurance.

SPEAKER_00 7:42

Yeah.

SPEAKER_01 7:43

This is government thing, governments like reassurance.

Name Changes And AML Evidence

SPEAKER_00 7:46

But it's also the two tenure, what's the word? You know, how long you work there. Because under Kayoga Order rules, you actually have to be in the same employment for at least 12 months, and if you're self-employed, you have to be two years. So it's funny they can't see us showing fingers on the podcast, but the ones on video can love that. Cool. And the other thing we would normally ask for if you changed names. So if you got married, or if you got divorced and you changed your name, but your passport still hasn't reflected that, or you got new documents and the other statements don't match that. So, you know, we do need to draw a link. And sometimes people go, Oh, why do I need to show you that? The linking documents for we need to show that Natasha Smith is also Natasha Jones and also Natasha something, something. So, you know, we gotta show this thing. Yes, we can't be mind readers, we're not psychic. So the bank is also not psychic. Yeah, and for anti-money laundering rules act, we do need to comply with that. So again, we're not being noisy into who you married and why and when you're divorced, yeah.

SPEAKER_01 8:53

It's just evidence, basically. So, like everything when it comes to borrowing money is just being able to evidence what you've put down. Yeah, yeah. So what you've said has to be backed up with the evidence. Yep. Correct.

Proving Your Deposit And Gifts

SPEAKER_00 9:06

Awesome. Anything else? I think we've done well. The one thing we did not mention yet is a deposit. So again, evidence of the deposit, whether it's KiwiSaver, we need the withdrawal from the Kiwi Saver. If you are doing second chance first home buyer and you need to withdraw Kiwi Saver, you need two letters. You need one as an approval that you can withdraw that KiwiSaver as a second chance, and then your Kiwi Saver withdrawal. We will also need your bank statements for the savings, and we'll also need gift certificates if anyone's gifting you any money. So there's a lot of information together.

SPEAKER_01 9:39

I guess going back to whatever you put down, we need to just evidence it. Yeah.

SPEAKER_00 9:45

Yep. So um, but it doesn't mean that you shouldn't be putting down things because we will see it anyway. We will find it.

Honesty, Evidence, And Wrap-Up

SPEAKER_01 9:52

That's why it's like then we need the evidence, right? Just to make sure it is truthful and that there's a back, you know, this is evidencing what your income sort of thing. Evidencing how long you've been at that job. Yep. Yeah. Beautiful. Awesome. Conch, thank you so much for dropping by. Thank you. Bye. Until next time.