Can a second job help you when it comes to getting a home loan from the bank? The answer is yes. A second job can definitely help you secure a bigger mortgage and according to Aseem Agarwal, Head of Mortgages at Global Finance having more than one job is becoming a more common scenario. “On average almost 20% of customers are holding down more than one job in order to meet the bank’s lending criteria”. Assem adds that with the cost-of-living crisis and stricter lending criteria, holding multiple jobs is more common than what it was before the pandemic. Professor Gail Pacheco, director of the N ..read more

Coming up are anticipated shifts in bank lending criteria in New Zealand that could significantly impact investors: namely changes to the bright-line test and the introduction of a debt-to-income ratio. As an investor or homebuyer, what could these changes mean for you? We asked Aseem Agarwal, Head of Mortgages at Global Finance. Bright-line test changes “The bright-line test on investment properties is poised to revert to a two-year period for both existing and new-build properties.” Dubbed by some as an anti-flipper test, the bright-line test is a de facto capital gains tax. Essentially, und ..read more

“Just because a bank has told you that you don’t qualify for a bank loan, don’t just take this as an absolute NO or assume that other banks will also turn down your home loan application because there’s something wrong in your profile.” it should not be viewed as the end of the homeownership road. An experienced and competent mortgage broker like Global Finance can look upon it as an opportunity to reassess your financial profile and explore alternative avenues for securing financing. Aseem Agarwal, Head of Mortgages at Global Finance says. When trying to secure a home loan, don’t look at a re ..read more

Global Finance, a leading name in the mortgage brokerage industry, proudly marks its 25th anniversary, a significant milestone that highlights its long-standing commitment to providing exceptional financial solutions and services. Established in 1999 , Global Finance has been at the forefront of financial innovation, helping clients navigate the complexities of mortgages, loans, and Personal risk insurances. Over the past two and a half decades, Global Finance has grown from a modest operation into a trusted financial partner for thousands of individuals and businesses. The company’s dedicatio ..read more

Securing a loan is not just about having a large enough deposit; it also involves a meticulous examination of your expenses. Banks look into your financial commitments and spending patterns, examining credit cards, store cards, loans, overdrafts, monthly bills and more. Banks typically look at an average of three to six months of statements to gauge where and how you spend your money. This process helps them to understand your financial commitments and assess how much you can allocate towards mortgage payments. We asked Aseem Agarwal, Head of Mortgages at Global Finance in New Zealand, about s ..read more

Whether you’re negotiating for a property purchase either by negotiation or through auction, we can’t stress enough how important it is that you have a clear understanding of how purchase of property and /or auctions work. A clear understanding of the ins and outs of bank lending, and you are aware of the conditions that you can include in your Sale Purchase Agreement (SPA) to protect your interest. Once you sign an SPA, it becomes a legally binding contract, and you’re legally obligated to follow its terms and conditions. Changing your mind is not an option. What is a Sale Purchase Agreement ..read more

Buying a house at auction in New Zealand can be exhilarating and nerve-wracking, especially for first-time home buyers. If approached with the right strategy, auctions can offer a fair and transparent way to secure a property. And that strategy involves careful preparation, a solid understanding of how auctions work, a clear understanding of the ins and outs of bank lending, clarity on all the relevant facts and figures and a fixed plan on how you’re going to tackle the auction on the auction day. You shouldn’t avoid auctions because you’re worried about how to formulate an auction plan. Hesit ..read more

In the ever-changing landscape of home loans, borrowers will at some point be asking themselves the eternal question: to fix or not to fix and if fix then for how long. The choice between short-term or long-term fixed rates needs careful thought. So, we asked Aseem Agarwal, Head of Mortgages at Global Finance for some insights and real-life examples to help shed some light on this dilemma. Understanding the basics: Repayments and interest rates Aseem begins by advising borrowers to calculate repayments at different interest rates and terms and aligning them with their budget and financial capa ..read more

The decision to pay off your mortgage early is tricky. The choice you make can impact everything from cash flow to potential investment opportunities and the answer will be different for everyone. We consulted Aseem Agarwal, Head of Mortgages at Global Finance on the pros and cons of paying off your mortgage ahead of schedule. Below are some of his insights. Pros of paying off your mortgage early Saving money on interest Making extra mortgage payments can translate into substantial interest savings over the life of the loan. “Each additional payment towards your principal means less money spen ..read more

Separating from a partner is unquestionably difficult, and more often than not, it is made even harder by financial concerns. However, amidst all the complexities, you need to keep practical matters in focus. If shared property and a mortgage are involved, then one of these practical matters is your mortgage payments. So, getting trusted independent legal and financial advice should be a top priority. Who Pays the Mortgage? In New Zealand, when a marriage, civil union or de facto relationship ends, the division of property is governed by the Property (Relationships) Act (PRA). Couples have equ ..read more