Turning Point Finance: Home Loan Advisor
At Turning Point Finance, we understand that buying a home is one of the most significant financial decisions you’ll ever make. Whether you’re a first-time homebuyer, looking to refinance, or planning to invest, our experienced brokers provide personalized guidance every step of the way.
Tailored Home Loan Financial Advice in New Zealand
Our experienced team compares multiple lenders to find the most suitable home loan for your unique financial situation. We provide access to exclusive offers provided by lenders from time to time. By working with us, you gain choice, flexibility, and the confidence that you’re securing the best loan for your needs.
Spend just five minutes answering a few questions about your financial situation, and we’ll provide you with how much you can borrow. Click here.
Our home loans services
- Buying First Home – We guide you through the process of purchasing your first home.
- Refinancing – Improve your current loan terms with better rates or payment flexibility.
- Build and Land Packages – Simplify your home-buying journey by financing both the land and construction.
- Investment Property Loans – Finance your real estate investments for future financial growth.
- Construction Loans – Build your dream home from the ground up.
- Bridging Loans – Secure financing while transitioning between homes.
- Personal Loans – Get flexible loan options for personal needs.
- Debt Consolidatio – Combine your debts into one manageable payment plan
getting in touch
We have local experts available to help you with all things finance related. They’ll make complicated easy and provide you with the information and advice you need to make the right decisions with your money.
Why Choose Us?
- Convenience – We handle the legwork of comparing lenders and negotiating rates so you don’t have to.
- Freedom – Our flexible solutions help you achieve financial freedom with the best results.
- Personalized Service – No call centers or automated systems – just real experts providing tailored advice to suit your individual needs.
- Confidence – As your one-stop shop for all financial needs, we provide ongoing support to help you make informed decisions with confidence.
What You’ll Need
To start, gather basic information about your income and expenses. If exact figures aren’t available, estimates will do. By continuing, you agree to being contacted by Turning Point Finance for further communication, but you can unsubscribe at any time.
What You Need to Know About Home Loans in New Zealand
Homeownership is a dream for many New Zealanders, but in today’s market, it can be a challenging endeavor, especially in cities like Auckland. Understanding how home loans work and knowing your options is crucial to making informed decisions about your financial future.
What is a Home Loan?
A home loan, or mortgage, is a loan provided by a bank or financial institution to help you purchase a home. This loan is typically spread over a long-term period (25-30 years), during which you make regular payments to repay both the loan and the interest. The loan is secured against the property, meaning if you fail to make repayments, the lender can take ownership of the home to recover the debt.
Types of Home Loans in New Zealand
- Fixed Rate Home Loans : A fixed-rate home loan ensures your interest rate remains constant for a specific period, typically between 1-5 years. This option provides financial stability, as your repayments will not increase during the fixed period, even if market rates rise. However, if rates drop, you may end up paying more than market value.
- Floating Rate Home Loans : With a floating-rate home loan, your interest rate can fluctuate based on market conditions. This offers more flexibility, allowing you to make extra repayments or pay off your loan early without penalties. However, monthly repayments can vary, making budgeting less predictable.
- Interest-Only Home Loans : In an interest-only loan, you only pay the interest on the loan for a specified time, usually up to five years. This is common for property investors looking to minimize their payments in the short term. After the interest-only period, the loan reverts to a standard repayment structure, which includes both principal and interest.
Key Considerations for Home Loans
- Interest Rates – Interest rates vary across lenders and can significantly impact the total cost of your loan. It’s essential to compare rates to ensure you’re getting the best deal. Even a small difference in rates can save you thousands over the life of your mortgage.
- Fees and Costs – When securing a home loan, be aware of associated fees, such as account-keeping fees, annual fees, loan application fees, and any potential redraw or early repayment fees. These can add to the overall cost of your loan, so it’s important to review them carefully before signing.
- Loan Terms – Home loan terms typically range from 25 up to 30 years. Shorter loan terms mean higher monthly payments but less interest paid overall. Longer terms provide lower monthly payments but increase the total interest over time.
- Loan-to-Value Ratio (LVR) – The LVR is the percentage of the property’s value that a lender is willing to finance. For example, an 80% LVR means you need to provide a 20% deposit. Lenders typically require a higher deposit for purchase of investment and commercial properties.
Making the Right Decision
Choosing the right home loan is about more than just securing the lowest interest rate. It’s about understanding your financial position, future plans, and how different loan options fit into your lifestyle. Take the time to compare options, consider your repayment capabilities, and consult with a mortgage advisor or mortgage broker who can help guide you through the process.
Home Loan Interest Rates and Fees in New Zealand
When considering a home loan in New Zealand, comparing the interest rates offered by different banks and financial institutions is crucial. A slight difference in interest rates can significantly impact the overall cost of your loan over a 30 year term. A trusted financial advisor or financial broker can guide you in assessing these rates and finding the best option for your financial situation.
Common Fees Associated with Home Loans
In addition to interest rates, several fees may apply to your home loan in New Zealand. Here are some common ones to be aware of:
- Add Bank Fees: Banks in New Zealand may charge various fees on home loans, including application, monthly service, and loan discharge fees. Late payment or redraw fees can also apply.
- Redraw Fees – If your loan includes a redraw facility, allowing you to access extra repayments you’ve made on your loan, you may encounter a redraw fee.
Other potential fees include:
- Loan application fee
- Valuation fee (at the time of property purchase)
- Late payment fees
- Discharge fee (if you pay off your loan early)
- Loan application fee
Before committing to a home loan, it’s important to ask your lender to clarify all applicable fees. A financial advisor can assist in evaluating these costs and ensuring you’re well-prepared for the financial commitment.
What is the Cost of a Home Loan in New Zealand?
The overall cost of a home loan depends on several factors, including the size of the loan, the interest rate, the term, and any additional fees. You might also choose to make extra repayments or extend the loan term, further affecting the total cost.
For example, on a $200,000 loan at an interest rate of 5.50% over 25 years, your monthly repayment would be $1,228, and the total amount paid over the life of the loan would be $368,452. On a $600,000 loan, the monthly repayment would be $3,685, and the 25-year total would amount to $1,105,357.
Your financial broker can provide more precise estimates and help you structure your loan to suit your financial goals, such as reducing the overall cost through early repayments or other strategies.
Additional Home Loan Features
Many lenders in New Zealand offer various features with their home loans that could work to your advantage. Here are a few examples:
Many lenders in New Zealand offer various features with their home loans that could work to your advantage. Here are a few examples:
- Offset Account: This allows you to reduce the amount of interest you pay by linking your savings account to your mortgage.
- Redraw Facility Access any extra repayments you’ve made on your loan.
- Extra Repayments: Some loans allow you to make additional payments to pay off your loan faster.
- Split Loan Options: Divide your loan between a fixed rate and a variable rate, giving you flexibility.
- Loan Switching The ability to switch to a different type of loan as your needs change.
- Guarantor Security: Some loans offer the option of a guarantor to help secure the loan, especially useful for first-home buyers.
When navigating home loans in New Zealand, it’s essential to compare a variety of options to ensure you’re securing the best deal. At Turning Point Finance, our experienced team of financial experts and financial brokers can help you find the right loan tailored to your unique situation. We’re here to guide you through the complexities of home loans, from understanding interest rates to minimizing fees, ensuring you make a well-informed decision. Whether you’re buying your first home or refinancing, let our dedicated financial experts in NZ help you achieve your homeownership goals with confidence.
Our promise to you
Don't pay a thing. Ever
Our home loan service is at no cost to you because the lenders pay us.
We do the legwork
Safe hours of research and paperwork. Let us do it all for you.
Always get straight advice
We don't favour lenders - our brokers get paid the same regardless of which lender you choose.
Your TP Finance broker will:
Evaluate your needs
Your Mortgage Choice broker will work with you to get a detailed picture of what you need from a home loan.
Calculate borrowing power
Your mortgage broker will calculate how much you can borrow so that you know the price range you can afford.
Compare your options
Your broker will compare and contrast hundreds of home loan products from over 20 lenders, including the big four banks.
Give expert advice
The banks are competing hard for your business. Your broker will provide expert advice to help you choose the home loan deal that's right for you.
Do all the legwork
Your broker will do all the paperwork and follow through the entire process with the lender from start to finish, making it as hassle-free as possible for you.
Pre-approval
Your broker may even be able to get you pre-approval on your home loan so that you can make an offer on a property or bid at auction with confidence.
All at no cost to you!
Your broker will do all of this at no charge to you because the lenders pay us a commission when the mortgage is settled. This doesn't affect the deal you get from the lender.
We pay your broker the same rate
At TP Finance , the only thing that matters to us is the home loan that's right for you. So we pay your broker the same rate no matter which home loan you choose from our wide choice of lenders.
Being prepared to meet your broker
TURNING POINT FINANCE
5/8 Laidlaw Way, East Tamaki, Auckland
09 930 7620
We’ll need to ask you a number of questions about your financial position, so it’s best to bring as much information as you can to this first meeting, such as:
- pay slip or proof of income
- current bank statements
- your passport or driver’s licence (ID) or birth certificate
- tax returns or tax assessment notice
- copies of recent statements for other credit facilities such as credit cards or other loans
- Sit down with you and get a thorough understanding of your circumstances, needs and goals.
- Based on your individual situation, compare a range of home loans from our wide choice of lenders – including the major banks – to help you work out the options that suit you without you having to do any of the legwork.
- Give you a clear comparison between different home loans.
- Calculate how much you can borrow and your likely monthly repayments so you know the price range you can afford to buy in.
- Explain all the costs associated with a loan.
- Prepare the paperwork, lodge the application and take care of all the running around.
- Help you complete and lodge an application for the First Home Owners Grant (if applicable).
- Negotiate the right deal for your needs with the lenders. Lenders receive a significant amount of business through the broker channel so it’s in their best interest to work closely with brokers.
- Explain the home buying process end-to-end.
- Liaise with your lender to get an indicative approval and provide any additional information if required.
- Provide property details, such as contracts, to your lender once you’ve found your property and follow up with the lender until final approval is provided.
- Advise you on the information and documentation your solicitor or conveyancer needs to provide to complete the transaction.
From first home buyers who are just starting out, to seasoned property investors who want to save time and legwork, a mortgage broker can provide valuable guidance and support no matter where you are in your home buying journey.
Find out when you should see a broker based on where you are on the home buying journey here.
Different types of home loans
A number of different types of home loans are available. The one that is right for your needs will depend on your circumstances, but usually, most lenders offer several different types of home loans.
Remember, the different types of home loans each have various features that appeal to different borrowers. The key is to have the type of home loan that is right for your circumstances.
Compare the different types of home loans available and their pros and cons.
If you are buying a new property whilst you are still looking to sell your existing property, you might want to look into something called a bridging loan. A bridging loan is a short term loan that gives you up to 6 months to sell the existing property, helping you navigate this awkward time as you transition to your new home.
A construction loan is a specialised loan that helps you meet the unique needs of ongoing payments throughout the contruction process. The key difference between a construction loan and a regular home loan is that it allows you to draw down on the loan balance, whilst a traditional home loan is made available in one lump sum to the borrower.
A fixed-rate loan is one that allows you to lock-in the current interest rate at the time of settlement. This means that the lender can not make any adjustments to the interest rate, whether it be up or down. Depending on your situation and needs, you may want to fix a rate for up to 5 years, although the lifetime of the loan itself may be 25 or 30 years.
Though some people might like the security of knowing exactly how much their repayments will be, they might lose out on falling interest rates as the market changes.
When borrowing money from a lender or bank, you can choose to pay just the interest on the loan or both the interest and the principal (the actual amount borrowed). If you choose to pay only the interest on the loan, your repayments will be much lower freeing up cash for things like renovations and other expenses. However, a lender or bank will always assess your ability to pay back both interest and principle in order to qualify for the loan as interest-only loans have a limited life span of up to 5 years.
The interest rate is usually low to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises. Rates can be fixed or capped. Most revert to the standard rates at the end of the honeymoon period.
Pros:
- Usually the lowest available rates
- When payments are made at the introductory rate, the principal can be reduced quickly
- Some lenders provide an offset account against these loans
Cons:
- Payments usually increase after the introductory period
Whilst it can be difficult to receive a home loan as a pensioner due to being considered risky by lenders, it is still possible to get a mortgage despite the challenges involved. If you are on a pension or applying for a home loan at an older age, you may be limited in the amount of funds you can borrow, this is due to a higher risk being associated by lenders when processing the loan application. The types of home loans available for pensioners can include reverse, mortgages, line of credit home loans and investment loans.
Once you have owned a property for a while and you have built up some equity by making repayments, you can then apply for a loan called a line of credit. This type of loan allows you to access the funds whenever it is needed.
This product is a handy and creative way to manage your cash as the money can be used for virtually anything and paid back on your terms.
As long you have more cash coming in than going out these accounts can be useful. However, they can be very costly if the balance of the line of credit is not regularly reduced as it can have higher interest rates and reduce the equity in your home.
As the name suggests, a low-doc loan is a loan suited to borrowers who may find it difficult to provide the paperwork needed for a traditional home loan. This type of loan usually appeals to investors and people who are self-employed as lenders will use other sources of documentation to consider your suitability for a loan.
Some people with a poor credit rating may struggle to be approved for a traditional home loan from as they are perceived as a greater risk to the lender. But not all is lost, as a non-conforming loan allows these people to secure a loan as lenders can use other evidence of your ability to repay a loan. A larger deposit is often needed as a sign that you are able to repay the loan and a higher interest rate is needed to offset the risk for the lender.
When you’re self employed, getting a home loan can involve a few extra steps making the process more complex. A guideline of some common requirements you should have ready when applying for a home loan are the following:
- Proof that your ABN has been registered for at least 2 years
- Last 2 years’ personal and business tax returns and tax assessment notices
- Balance sheet and profit and loss statements covering the most recent 2 years
- Details of any external liabilities: leases, hire purchase, overdrafts, company loans and/or guarantees
- Last 1 month’s business bank statements
A split rate loan allows you to fix one portion of the loan whilst the setting the remaining amount as a variable. You can even choose how much you would like to allocate to both, giving you the best of both worlds with the peace of mind a fixed rate provides whilst also being able to capitalise on the possibility of rates dropping.
The rate of interest you need to pay to the lender for your home loan can be subject to the movements of the interest rates set by the Reserve Bank of Australia. Essentially if the Reserve Bank of Australia moves the rate up or down, your lender is likely to follow suit by passing on the changes to you.
Why use a TP Finance broker?
Over the years, our passion for offering choice and advice has been extended to other areas of personal and business finance, including our industry leading financial planning service
Access hundreds of loans from our wide choice of lenders, including the big 4 banks. We shop around for you and your broker can negotiate a competitive rate.
We can offer our home loan service at no charge to you because the lenders pay us a commission when the mortgage is settled. This doesn’t affect the deal you get from the lender.
The banks are competing hard for your business. Let us help you choose the right deal with expert advice at no cost to you.
Hectic lifestyles don’t leave time for long daytime meetings at the bank. We offer appointments at the time and place that suits you, including after work.
From comparing home loan options to preparing the paperwork and supporting you through to settlement, your mortgage broker does all the running around.
Your TP Finance broker will:
Evaluate your needs
Your Mortgage Choice broker will work with you to get a detailed picture of what you need from a home loan.
Calculate borrowing power
Your mortgage broker will calculate how much you can borrow so that you know the price range you can afford.
Compare your options
Your broker will compare and contrast hundreds of home loan products from over 20 lenders, including the big four banks.
Give expert advice
The banks are competing hard for your business. Your broker will provide expert advice to help you choose the home loan deal that’s right for you.
Do all the legwork
Your broker will do all the paperwork and follow through the entire process with the lender from start to finish, making it as hassle-free as possible for you.
Pre-approval
Your broker may even be able to get you pre-approval on your home loan so that you can make an offer on a property or bid at auction with confidence.
All at no cost to you!
Your broker will do all of this at no charge to you because the lenders pay us a commission when the mortgage is settled. This doesn’t affect the deal you get from the lender.
We pay your broker the same rate
At TP Finance , the only thing that matters to us is the home loan that’s right for you. So we pay your broker the same rate no matter which home loan you choose from our wide choice of lenders.
