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  • #16
    What seems to be happening is there is an invisible "risk weighting" in the banks servicing calculations that requires people who want the Welcome home loan ( to solve a small deposit problem) to have a healthier debt servicing % than those who don't.

    This is kind of speculating and reading between the lines a bit, but it's the only conclusion I can come to after dealing with Kiwibank.

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    • #17
      Spot on. With all Banks at 90% plus lending the UMI (uncommited monthly income) is higher than for say 80% borrowing.
      Just had a client call me saying she had approached Kiwibank 2 months ago for a 95% advance, verbally OK but they won't issue a conditional offer until Clients kiwisaver provider produced a statement. This they have done but KB still won't issue the conditional offer letter. She earns a lot but has a $20K bank loan so in my opinion she won't get a 95% mortgage particularly with KB as QBE won't sign it off. The only Bank who I think would do this would be ASB as they self insure and so don't rely on QBE or Genworth.
      www.ilender.co.nz
      Financial Paramedics

      Comment


      • #18
        Brokerman, how can you get people to come to you for Welcome home loan when it's not even available through your channel? Robin, I don't think you can assume the risk weighing without knowing the facts.
        Unless her financial situation is disclosed clearly here, I don't think it's fair to comment on Welcome Home loan with biased and unjustified grounds.
        If we are talking about an average person with good income, not many debts, single, really, any bank would lend them the money, including it via Welcome, based on servicing. Remember, in essence, Welcome is targeted for low income people, therefore, it's servicing
        criteria is noramlly more relaxed than the other lenders. There must be part of the story that has not been told.

        Comment


        • #19
          I don't get people coming to me for WHL, I get the one's WHL decline, which is a lot! Also I do know Brokers who help people with it and charge a fee.
          www.ilender.co.nz
          Financial Paramedics

          Comment


          • #20
            Originally posted by Exotic pumpkin View Post
            Brokerman, how can you get people to come to you for Welcome home loan when it's not even available through your channel? Robin, I don't think you can assume the risk weighing without knowing the facts.
            Unless her financial situation is disclosed clearly here, I don't think it's fair to comment on Welcome Home loan with biased and unjustified grounds.
            If we are talking about an average person with good income, not many debts, single, really, any bank would lend them the money, including it via Welcome, based on servicing. Remember, in essence, Welcome is targeted for low income people, therefore, it's servicing
            criteria is noramlly more relaxed than the other lenders. There must be part of the story that has not been told.
            Just to be totally clear here:

            Can she borrow 90% without welcome home loan... YES. Can she borrow 90% with welcome home loan.... NO.

            Same bank, same debt, same circumstances.

            Comment


            • #21
              It's probably because it was the last one they had in stock.

              If they used that one, they wouldn't have one available in case someone came in wanting one.

              Comment


              • #22
                At least the fact is clear now. This is the quote from the Welcome home loan website:
                'A Welcome Home Loan helps people with modest incomes, who are outside standard lending criteria, to get a home loan with little or no deposit. '. Robin said she could get a loan at 90% via the bank. Then she shouldn't be qualified for a Welcome Home loan.

                I find Welcome being a good marginal product to help some parts of the society. Brkerman, http://www.welcomehomeloan.co.nz/lenders.php , here you can find the list of lenders for Welcome loan, broker is not involved at all. No wonder they are not getting the business.

                Comment


                • #23
                  'A Welcome Home Loan helps people with modest incomes, who are outside standard lending criteria, to get a home loan with little or no deposit. '

                  Nope. That's just blurb explaining why Welcome home loans exist.

                  There is no criteria that excludes you specifically because you qualify for finance without it. Kiwibank told us that the block to getting the welcome home loan was debt serviceability.

                  "I find Welcome being a good marginal product to help some parts of the society."
                  How many people do you know (single incomes here, not dual incomes) who have closed a purchase using a welcome home loan?

                  Comment


                  • #24
                    Originally posted by Exotic pumpkin View Post

                    I find Welcome being a good marginal product to help some parts of the society. Brkerman, http://www.welcomehomeloan.co.nz/lenders.php , here you can find the list of lenders for Welcome loan, broker is not involved at all. No wonder they are not getting the business.
                    I am well aware of the Lenders involved and also know that a Broker is not involved. Probably accounts for 95% of applications declined, if a Broker was involved most of these would not get past the first post.
                    www.ilender.co.nz
                    Financial Paramedics

                    Comment


                    • #25
                      I wouldn't trust what you hear from Kiwibank, when you are not actually party to the deal, and only gets the hearsay.
                      If someone qualified for a standard loan from banks, they don't qualify for Welcome. You can call the Wecome line yourself
                      to find out the facts.

                      Also, numerous people have got Welcome home loan, thanks for this product being available. Nos? You can call Welcome
                      phone NO and fine out. I've known a few people who got it.

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                      • #26
                        my partner am me have got a welcome home loan.... bought our house in may.... we got approved for $265,000... found a house for $270,000 and were told that we could have the extra money really good.... hard in the unconditional stages... other than that everything was very smooth.... we went through TSB welcome home line..... i tries withkiwi bank first and they said we didnt qualify.... TSB however said we did... and we must have.... we own the house now!

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