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Mortgage Calculator

Are you wondering if you can afford a home loan? You can get a rough idea of what your repayments might be with this calculator.

For a more accurate calculation of what you can afford and what your options are, give us a call for a no-obligation chat.

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Refixing Your Mortgage

When a borrower first gets a mortgage one of the top priorities is to get a good interest rate.

At the time of purchase there is always a large focus on interest rates – and understandably so. On a large mortgage, even small savings made on a rate can save a lot of money in interest costs. The mistake that borrowers often make is to focus on interest rates at the beginning of a mortgage but not pay so much attention to them when it comes time to refix.

Refixing with the bank

When a fixed rate loan is coming up to expiry the bank will generally post out a tick-the-box form to choose a new fixed rate on expiry. This is a great service but serves more to make it easy for the bank than to make it beneficial for a borrower.

The banks make money from the differential in rates between what they can borrow funds at and how much they can on-lend these funds out to the public. If you follow this logic through you could conclude that it is not in the bank’s best interests to give the cheapest rates it can. Another issue with simple ticking a rate on a form is that there is no opportunity to discuss the structure of the lending to make sure it is still the best way it can be.

Refixing through a Broker

As Mortgages Brokers/Advisers our job is to make sure that not only do we get you the loan at the beginning of the process but that the ongoing rates and structure are the best for you they can be. As Brokers we do not work for the bank, we work for our clients.

Every time it comes time to refix a loan it is also time to revisit the structure of your mortgage. At this point in time it may be best to split your mortgage total into more than one fixed rate period, add or tweak a floating or Revolving Credit portion and talk about any changes needed to accommodate future plans.

What worked for you even a year ago may not be the ideal structure now.

You get the benefit of all the Broker’s experience and market knowledge.

Getting quotes for discounted rates is as easy as sending us an email. From there we can discuss your situation in a much depth as you would like or we can simply have your loan refixed at a competitive rate. No matter how much help or advise you need, this service will cost you nothing and could save you thousands.

“Refinancing our New Zealand properties with Edge Mortgages was such a simple, overwhelmingly positive experience, that I have no hesitation in recommending them to anyone looking to make a financing change. I was especially impressed by the depth of competence in their organisation – everyone was a pleasure to deal with! A first class business experience, from beginning to end – J and R Nunney.”

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Personal Loans

Do you need a small, short term loan to buy a car or a boat, or to consolidate some debt?

Do you want to complete some renovations to your home?

It may be easier to get a separate loan for these types of expenses instead of adding to your mortgage – or you may not have a property available to use as security. This is where getting a personal loan may work better for you.

Not all borrowing requirements fall into the clear categories of residential or commercial lending. There are a number of factors which influence the type of loan you need and a number of options we can provide to meet these needs.

The Edge Group has access to a wide range of lenders, and many years of experience in matching an individual’s situation to a funding solution. We pride ourselves on having a solution for all of your borrowing requirements.

If you have any type of borrowing requirements please give us a call and we’ll be happy to talk through the options with you.

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Getting a Mortgage when you have bad credit

A lot of people only find out they have a credit history issue after applying for a mortgage and being rejected because of what the lender found on their credit report.
But having a poor credit history does not mean you have to wait to get into (or
back into) the property market.

How do you get a bad credit rating?

Every time you apply for a loan – from a credit card to a car loan up to a mortgage for a house, the lender will look at your credit history. Every time they do they leave a record of what, and how much, you are applying for.

If you fail to pay a supplier (such as the phone/electricity company), someone who has provided a service, or a lender they can lodge an entry on your credit report which tells anyone doing a credit check after them that there is an issue. Even when paid,
the item remains on your history for up to 5 years.

If you apply for a mortgage and this type of issue is discovered, the banks may decide not to lend you the money.

The good news is that there are lenders who will potentially allow you to borrow even if you have multiple credit issues. Also, providing a standard bank a reasonable explanation about the reason for the credit issue may mean we can get a mortgage through
traditional channels straight away.

This means that you can possibly get back into the property market now instead of waiting for up to 5 years, or you can save that property you own and would love to hang on to.

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Low Doc and No Doc Loans

These types of loans would be suitable if you are one of those people who can not provide the type of documentation normally required by lenders to show that you can afford to make loan repayments.

For example, if you are self-employed you may not have the necessary two years of complete financial records.

What’s the difference between the two?

Lo-Doc Loans
This a loan provided on the basis that the you declare what you earn by way of a bank statement and/or GST returns instead of proving what you earn by way of standard income documentation.

  • Offered through defined channels
  • Up to 70% loan to value borrowings
  • Term up to 30 years with up to 5 years Interest Only
  • Must have been at least 18 months in current business
  • Stated income must be within industry benchmarks
No-Doc Loans
This is a loan provided on the basis that the lender relies on the equity you have in a property instead of you having to provide income proof or declare an amount.

  • Up to 65% loan to value
  • Term 3 months to 2 years

The loans described above are not for everyone, and tend to come with higher interest rates, but they fill a gap for certain borrowers who meet the criteria.

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Mortgages for the self employed

Self employed and looking for a home loan?

We know that there are different challenges facing you as opposed to people that earn a salary or wages.

Firstly, being self-employed means that your accountant will try to present your financial accounts in a way that reduces the amount of tax you have to pay.

Unfortunately, this is usually the opposite of what you need to show to get a mortgage from a bank.

We are experienced in reading financial accounts and have skills in extracting a number of items within them that can be added-back into the income side. On top of this we understand that some banks are happier to take self-employed income than others and will also allow just one-year of trading results instead of two or more.

If you are self-employed and thinking of purchasing, get in touch with us – we’d be happy to help.

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Business Loans

We understand that purchasing a business is a tough time for anyone. The costs associated in establishing a new venture come at a time that it is usually earning the least for you.

At Edge Mortgages we have helped many clients with funding and cash-flow for both young and growing businesses. We have a number of sources covering all areas of business funding to help in the process.

If you are thinking of purchasing a business or expanding one you already own, give us a call to discuss the best way of funding this.

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Developments and Large Scale Commercial Finance

For very large projects we can arrange funding through a finance company.

Finance companies occupy the space which trading banks see as too risky.

They enable projects, both large and small, to go ahead and develop to a stage where the trading banks can see merit in taking the deal over.

Finance companies provide a great alternative to more conventional funding lines.

  • They are short-term funders – generally 6 months to 2 years maximum.
  • They have higher interest rates and fees as they know they have a limited time frame to earn from a deal.
  • They often rely on a “take-out” to help approve a deal i.e. where there is a defined end-point to a project such as a sale of a property or a refinance by a bank.
  • With a take-out in place there is often much less emphasis on proving income if the equity in the project is sufficient.
  • There is the ability to capitalise interest and fees through the project so the costs are all contained within the debt.
  • They work well for “Property Traders” where they are happy for people to turn-over properties regularly for a profit when the banks are not designed to do this.
  • They can help “cleanse” a deal where there could be some credit issues or payment problems which mean a bank is unwilling to take a client on. After 6 months of proven payments with a finance company it is often a lot easier to refinance back into a mainstream bank.

Given a lot of negative press around investing in finance companies, many people are still not willing to deposit their funds with them – but they should never be counted out when it comes to borrowing from them for specific projects.

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Commercial Property Finance

Getting lending for commercial property is a little different from getting a home loan.

The drivers behind commercial property are different – and often less emotional – than a place that people live in. As a result, the criteria surrounding much of the funding in this area has remained largely unchanged over the recent years.

The basic level the trading banks promote is a 65% loan to value ratio as a maximum, but the fact is that there is the ability to borrow up to 100% of an owner-occupied commercial property.

The costs for commercial loans are higher than residential.  As a guide they would be anywhere between 1% more than residential rates to 2.5% more.

As with residential lending, every bank looks at commercial property funding in a different way and have their own views on how much they will lend against it, given a range of conditions such as location, type, strength of the lease or owner-occupier and industry.

The key is to have it arranged before going unconditional on a new purchase – and this is especially relevant for commercial property. There a many more aspects to funding commercial property than obtaining lending against residential security.

If you are considering purchasing commercial property, give the friendly experts at Edge Mortgages a call

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Bridging loans

As the term suggests a “bridging” loan is one that joins two places – in this case, property.

Often when you are buying your second (or subsequent) owner-occupied property you need to sell the property you are currently living in to fund the deposit on the new place you have purchased. Ideally, the timing works so that you sell your current home on the same day that you purchase your new one but sometimes the timing does not allow this to happen.

When the sell-buy timing does not line up there are two, distinct, types of bridging loans.

Closed Bridge

This situation occurs when you have sold your current property unconditionally and have a defined settlement date for it. At the same time, you have purchased a new property and this purchase settles before the sale of your current property.

For the time between you moving into the new home and selling your current one that you own both properties – and carry the debt against them as well. This presents a unique situation for the bank in that you may well be carrying too much debt, for that period, as judged by what the bank says you can afford. This is effectively breaking their lending rules, but it is allowable (under certain circumstances) because we can prove to the bank that this will be for a specific period only and when you settle on your old property the debt load will return to within the allowable limits.

Open Bridge

This type of bridging loan happens when you’ve purchased a new home with a set settlement date, but you have yet to sell your current property. You still need the funds for both properties, but the problem is that you do not know how long you’ll need them as you have no definitive date for the sale of the current property. This presents a lending problem for the bank as they would be lending you extra funds with no guarantee of timeframe when it would be paid back.

Currently, the trading banks do not lend in this situation.

There may be other options available using other lenders for example so if you are faced with either of the above scenarios then please get in contact.

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