Bank said no? A non-bank solution
Non-banks also known as a second tier lender can provide solutions for a variety of problems an individual may face at a main bank i.e, ASB, ANZ, BNZ & Westpac.
- Didn’t meet your bank’s servicing requirements
- Bad credit and poor account conduct
- Self employed without 2 years of full financials
- First home buyer without 5% of genuine savings
- Short on a deposit amount
- Property intended to be sold within a short timeframe
Didn't meet your bank's servicing requirements
Bank’s set their own benchmark rate to determine your ability to service a loan above the interest rates you may see advertised. Some non-banks can calculate your serviceability at a lower rate giving you the ability to borrow more.
Bad credit and poor account conduct
Loan defaults can remain on your credit history for up to 5 years. This can be a problem when applying for a loan through a main bank.
Non-banks have products designed for loan defaults and historical debt. In comparison to the main banks, these products will have a higher interest rate.
The upside is that there may be options for you to lower your interest rate over a period of time. It is entirely dependant on your ability to meet your repayment obligations.
Self employed without 1 - 2 years financials
Non-bank lenders can accept a minimum of 6 months GST returns or 1 year full financial statements as proof of income. This can benefit you if you are just starting out in business. Your interest rate will be higher with less financial documents available. You will be able to request a re-assessment of your financials & rates after 6 months.
See our ‘Self employed’ page for more information
First home buyer without 5% genuine savings
Main banks require a minimum of 5% of your purchase price to come from either your Kiwisaver, regular savings or the sale of an asset. If you are being gifted 100% of your deposit a non-bank will be the right solution.
If your income is strong and your credit and account conduct is clean, it is possible for your interest rate to start from sub 4%.
See our ‘First home buyer’ page for more information about the buying process.
Short on a deposit amount?
Bank’s can only accept further gifting if you are short on the deposit amount required for a property purchase.
Non-bank lenders may accept a personal loan as part of your deposit, provided that your income is strong enough to service both debts.
Property intended to be sold within a short timeframe
Non-bank lenders are a common option for property traders. This is because main banks do not favour short term mortgage lending.
The cost of a short term loan can be up to 3% of the lending amount plus interest accrued over 3 – 6 months. If you are intending to make a profit from the property it is important to factor this into your projected profit.
Why Moose Mortgages & Insurance?
Our service is free
The mortgage and insurance companies we work with pay us, so you don’t have to. If there’s ever a fee, we’ll talk to you about it before we do any work.
Personalised advice
Personalised advice helps make sure your mortgage or insurance fits your financial goals. This could save you thousands over time.
Compare your options
If you want to apply to more than one bank, we can do that for you without making you fill out the paperwork again. If you go directly to the banks, you’ll have to start from scratch, which takes a lot of time.
Full support
We’ll walk you through the whole process, answer all your questions, and keep you in the loop every step of the way. We’ll also review your mortgage or insurance every year to make sure it still fits your needs.
Why should I use a mortgage adviser?
Our service is free for you when working with a major bank. The banks pay us when you settle a home loan with them. We make the whole process easy, explain everything in plain language, and help you get into a home faster.
Getting expert mortgage advice can help you pay off your home loan sooner and save thousands in interest. We’ll recommend a loan that’s tailored to your goals.
We work with over 15 lenders in NZ. This means we can apply to more than one bank if required without you having to fill out the paperwork more than once.
- Most banks will pay us so you don't have to. If theres ever a fee involved we'll talk to you about it first.
- We support you every step of the way.
- Get expert mortgage advice tailored to your goals.
- Access to over 15 major and non-bank lenders.
Use our link ‘Get Started’ to create a profile and answer a few questions to outline your home lending goals and financial position. It only takes a few minutes.
Once you’ve completed our online fact find, an adviser will contact you to arrange a meeting in person, online, or over the phone. We’ll use your answers to estimate how much you can borrow and what your repayments might be, making sure they fit your property goals. We’ll also discuss which banks might be the best option for you.
You’ll receive a document explaining what our adviser does, their Financial Service Provider (FSP) number, and how we’re paid by most lenders. If there’s a fee for our advice, we’ll tell you upfront before you decide to use our service.
After our meeting, we’ll prepare a bank application for the lender(s) that best suit your needs. You’ll have a chance to review it via email before we submit it.
Once you’re approved, we’ll guide you through your lending conditions and make sure the property you’re interested in meets the bank’s requirements.
Once your lending conditions are met, we’ll review pricing and meet to discuss your loan structure. Then, we’ll prepare a statement of advice with our recommendations for you to review.
If you need any changes, the adviser will adjust the recommendation to ensure it suits your needs before you decide to accept or decline it.
If you accept the adviser’s recommendation, we’ll arrange for your bank to document your loan structure and send the loan documents to your solicitor.
Next, you’ll sign the documents with your solicitor and get the keys on settlement day.
Your adviser will check in 30 days before your fixed rate renewal or once a year to review your mortgage. This helps ensure it still suits your needs as your life changes.