What bank is best for Mortgage?

[JohnT]

Hi there

I am just about at the end of my fixed term 1 year mortgage which I have with NZF, for my first house (rental)

I would like to re mortgage with a bank, but would like to find out is there a particular bank out there that tends to like or have an interest in dealing with property investors and is keen to see them grow

My situation, I am currently living at home with parents and my rental is my first property I have purchased. Long term I would like to purchase another house hopefully this time for me to live in (but I am enjoying property investment so would like to buy another rental in the future)

The first time around I went to a mortgage broker to get my NZF mortgage, this time around I would like to find a lender my self or try too

I am not just looking at interest rates, but that is a factor, but I want a bank that will work with me for the future

What lenders do you use? Any feedback would be great

Thanks

[speights boy]

Was the reason you went with NZF as opposed to a bank because had low equity?

If so; how much has the situation improved over the last year?

[JohnT]

Hi there, yes low equity was the reason, basically NZF was the only lender who were willing to lend to me.

My situation this time round is when I refinance I have saved enough to put a lump payment down so that my equity is 20% in the house.

[CJ]

Just try a few banks. Kiwibank have low rates and are easy to deal with. I am personally using ASB for my loans but I have been with them since birth which I always pull out when they dont give me a good deal.

otherwise, just go back to your broker. They got you a deal last time so why not go back to them?

[Orkibi]

Hi JohnT,

For a New purchase, if you may be buying from a property Trader I suggest DON'T go to NBNZ or ANZ -- ONLY IF YOU MAKE SURE that your Mortgage broker take this in to account when sorting out your finance application and have the assessor on your side.

Some investors are having difficulties with ANZ National when it comes to Contemporaneous settlements.

[jadelotus]

are you a member of a property investors association? if so, check with their sponsoring bank, eg at WaikatoPIA, ANZ is our sponsor and we get a deal which saves us money on the mortgage interest rate and bank fees. More than enough to pay for the cost of the membership.

[moneyman]

two ways to go here John, i think.....refinance NZF loan with the lump sum reduction to main bank lender...reduce LVR to 80% and improve cashflow on what you've got or work with a broker to do the sums on what putting the lump sum into another property might look like. As to which one is better will depend on what the numbers are like on the current property, your personal income and what the future looks like (in terms of income and ability to drive further lump reductions or deposits)

[Ivan McIntosh]

I've seen Kiwibank put together some quite innovative deals. ASB and Westpac also seem reasonable.

As always, however, it depends a lot on the individuals within those banks that you are dealing with. Plus, if things do bad, you get transferred to a whole bunch of new people that you don't know and who will almost certainly have quite a different attitude.

[brokerman]

As a broker I'd say do the right thing and go back to original person who helped you out in the first place.

[moneyman]

Has to be first port of call

[JohnT]

Hi Guys

Thanks for your input, really appreciate it. Right I have emailed my mortgage broker and will go from there. I guess the broker does take the pressure off a little too, and my current loan ends first week of march so times ticking along

I will update how I get on

Thanks

[WGN ex-property manager]

Worth noting that BNZ and Kiwi-bank generally don't deal with brokers, so it might be worth approaching them direct, as well as using the broker.

[CherylSorin]

Hi

Finding a bank to help you can be quite stressful and time consuming. I would suggest that you contact the broker that helped you the first time. If you can not do that, then contact a new broker and ask them to assist you

[mortgage broker]

JohnT not all brokers are the same and as you know the lenders are very different to each other right now. You may want to consider holding aside the lump sum deposit for later purchases, if you end up with a lender who is really kean on 20% equity it will restrict further purchases.

Bear in mind that unlike us, a lot of brokers do not approach BNZ and KiwiBank funding.

[mortgage broker]

Worth noting that BNZ and Kiwi-bank generally don't deal with brokers, so it might be worth approaching them direct, as well as using the broker.

We often send business to both those banks.