Why Choose us?

 

1. We are  loan experts with twenty five years of  bank experience in home and commercial lending.

2. We make your loan raising exercise hassle free.

3. We can examine and restructure your loan, cutting years off your mortgage and save thousands of dollars.


Welcome to New Zealand’s favourite Mortgage Website
 
In current scenerio, where banks change their  lending policies every other day, raising a home loan, business loan or commercial property loan and getting a good deal is a complictaed exercise.  That is why you need services of an experienced financial adviser who has up to date knowledge of lending industry, understands lending criteria in depth and can arrange best offer for you while you relax at home.
 
Our experts at Cherry Mortgage Solutions with wealth of knowledge and extensive experience (20 years as Bank Manager in New Zealand, U.K/overseas) take stress and confusion out of your loan hunting exercise and make it a simple and easy process. We fully understand, every borrower has a unique situation and work accordingly.

With our strong relationship with lenders we can arrange home or residential investment property loans even upto 90%. We also arrange business loans and commercial property loans at most competitive terms and interest rates.

We take special care of first home buyers, and guide them at every step of home buying process. Our solutions for your mortgage or Business Loans are designed around your unique situation and needs. We also examine for free, your current loan structure and if needed restructure it which can make you pay your loan faster and save many thousand dollars.

Cherry Mortgage are one stop solution for both your loan and insurance needs. We cover all your risks by suitable insurance covers like, life cover, trauma cover, income protection, mortgage protection and medical cover from a range of prominent insurance companies at most competitive prices and take over all hassles of related paperwork.

Contact us on 09 625 3800 or
enquire online and we will make it a stress free pleasant experience for you. We are available all seven days of week and can come over to you.
90% Home Loans at Cherry MortgageLatest on Cherry Mortgage

 Cherry Newsletter April 2014

   Current Mortgage Interest Rates* as on 4th March 2014

Variable                      5.45%

6 Month Fixed             5.05%

1 Year Fixed                5.24%

2 Year Fixed                5.69%

3 Year Fixed                6.19%

4 Years Fixed               6.39%

5 Year Fixed                6.69%

*Conditions apply

These are not published rates of the banks. But Cherry Mortgage will be able to get you above interest rates and may be   even better if loan amount is high and subject to certain other terms and conditions.

Economic Outlook

With the rise of Official Cash Rate by 0.25% to 2.75% last month, New Zealand Business Confidence slipped back after a 20 year high reached in February 2014. Less businesses were confident of raising prices, their expected profitability slipped back and inflations expectations rose slightly.

IMF (International Monetary Fund) says in its report  New Zealand dollar is overvalued by 5 to 15% and booming Auckland Housing Market is one of the biggest threat to New Zealand economy. But at the same time it mentions LVR restrictions and increasing interest rates may slow it down housing market  in due course, though we do not find any such effect so far at least in Auckland. Only change LVR restrictions appear to have   made, is shutting out first home buyers from housing market  and providing better opportunities to investors.

Interest Rates Outlook

Home Loan Interest Rates are expected to continue to rise gradually over next few years. The Reserve Bank of New Zealand raised OCR last month from historically low 2.5% to 2.75% after three years. OCR is expected to go up to 3.75% by March 15. It will be seen that fixed mortgage rates are also gradually rising and at least have gone up around 0.5% during last six months.

 

Floating rate will no longer be remain attractive  after another hike  and a prudent approach will be to split your home loan into a  short terms of 2 years, one year or maximum 3 years and simultaneously  keeping some part as revolving facility for your emergent needs or putting in surplus money to save on interest.

 

90% Home and Investment Property Loans available now

Banks and second tier lenders are hungry for mortgage loans as always. During last six months banks extended only very small percentage of loans over 80% LVR. Now they have spare capacity in 10% lending over 80%  LVR and are keen to extend loans up to at least 90% for both owner occupied and rental property loans to good clients. 

Talk to us for over 80% lending whether it is home loan or an investment property loan.  Such loan are now available:

  1. Up to 90% LVR for home and rental property.
  2. Only 5% saved deposit is needed which may come even from kiwisaver and rest may be gifted.
  3. Home Loan  up to 80% is available for short term self-employed (minimum six months).
  4. Home Loan is available to people with impaired credit but having 20% deposit and good income.
  5. Home Loan may be available even over 90% to people with very high  stable income and high uncommitted montly surplus income.
  6. Use “Mum and Dad’s Equity Bank” for deposit (see below for details)

 

Talk to us about your situations and we will advise you best options available for your situation

 

“Mum and Dad’s Equity Bank”

For a first home buyer, saving for deposit may be difficult though you have repaying capacity. Use the equity in your mum and dad’s home or rental property. Good part is that mum and dad have not to provide any cash or stand guaranty for whole loan amount. They have simply to stand guaranty for 20% of the purchase price of the home being bought by you and their property will be security for 20% of loan amount.

If you have some deposit then their guaranty and mortgage over their property will be for only balance amount so as to make it 20%.

By using Mum and Dad’s home equity:

  • You may be able to buy your home sooner
  • You will not pay high interest rate applicable to over 80% LVR Loans
  • You will not pay  low equity fee or Lenders Mortgage Insurance (LMI)
  • Guarantors can be parents, in-laws or grandparents.

 

Loan will go down with time and normally house value goes up. When Loan to Value Ratio (LVR) is under 80%, mum and dad’s guarantee will be cancelled and mortgage on their house will be removed.

 

Talk to us for more information and options available. This is a good way for parents to starts their newly earning kids on property ladder. Such loans may be for owner occupied and rental property both.

 

 

Auckland Housing prices continue to rise in March

Auckland's housing market rebounded in March as it entered its traditionally busiest month.

The city's largest real estate agency, Barfoot & Thompson, reported 1392 sales, an 80 per cent increase on February. The asking price increased by over $5000 in Auckland, and rose to a new record high of $683,169.

Buying under Mortgagee Sale

When a homeowner cannot repay the loan, the lender (usually a bank) can sell the house to recoup the money loaned. This is called a Mortgagee Sale.

In a mortgagee sale, it is not the homeowner who is selling the property but the bank, often against the wishes of the former.

There are a number of risks and pitfalls associated with the purchase of a property under mortgagee sale.

If you are intending to purchase such a property, you must take a number of precautions to protect yourself and your money. 

  1. You should check whether the agreement for sale and purchase is conditional on the mortgagor failing to repay his or her debt by a certain date. Even when the Sale- Purchase Agreement is unconditional, there may be a clause allowing the mortgagee to cancel the agreement if the mortgagor discharges the debt, or brings a legal action to stop the sale from going ahead. This implies that in some cases you will not be certain whether sale will go ahead or not until the actual settlement date.

2. The Sale-Purchase Agreement should be scrutinised thoroughly. Once the lender gets the right to exercise its power of sale, the owner would not able to sell the property without the lender’s consent. Therefore, you should not enter into an agreement for sale and purchase with an owner without checking that the bank accorded its consent.

  1. Mortgagee Sale-Purchase Agreement is normally different from the standard contract that you may have seen in your other property deals. A number of common contractual clauses are removed as per the lender’s requirement.
  2. The lender bank may like to dispose of the property as soon as possible, and may be unwilling to negotiate the terms of the agreement. The bank may not allow the agreement to become conditional even when buyer tries to do so. As such, you should be ready with the finance required beforehand, LIM checked and ascertain condition of property you are buying. 
  3. Further, Mortgagee Sale-Purchase Agreement will not usually guarantee vacant possession. It is prudent to find out whether the mortgagor is still occupying the property and/or whether there are tenants. As a buyer, it would be your responsibility to get the property vacated.
  4. Another pitfall is that there is no vendor guarantee for the condition of the property and its building compliance.
  5. To protect your own interest, you should try to inspect the property before bidding.
  1. The owner can also remove the chattels and the purchaser would carry risks of damage to the property. You should therefore keep a margin in your bid for such unforeseen losses.
  2. You must insure the property as soon as the agreement is signed, as invariably it will be signed as unconditional sale-purchase agreement. When you buy such a property in an auction, this is when the hammer would fall.

Taking into consideration various potential issues associated with buying a property at a mortgagee sale, it is important that you do your homework prior to bidding in an auction or signing the Sale- Purchase Agreement.

 

Reserve Bank raises OCR to 2.75 percent after three years

The Reserve Bank today increased the OCR by 25 basis points to 2.75 percent. Governor Wheeler said,

“New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based.  GDP is estimated to have grown by 3.3 percent in the year to March.  Growth is gradually increasing in New Zealand’s trading partners.  However, improvements in major economies have required exceptional support from monetary policy.  Global financial conditions continue to be very accommodating, with bond yields in most advanced countries low and equity markets performing strongly.

Prices for New Zealand’s export commodities remain very high, and especially for dairy.  Domestically, the extended period of low interest rates and continued strong growth in construction sector activity have supported recovery.  A rapid increase in net immigration over the past 18 months has also boosted housing and consumer demand.  Confidence is very high among consumers and businesses, and hiring and investment intentions continue to increase.

Growth in demand has been absorbing spare capacity, and inflationary pressures are becoming apparent, especially in the non-tradables sector.  In the tradables sector, weak import price inflation and the high exchange rate have held down inflation.  The high exchange rate remains a headwind to the tradables sector.  The Bank does not believe the current level of the exchange rate is sustainable in the long run. 

There has been some moderation in the housing market.  Restrictions on high loan-to-value ratio mortgage lending are starting to ease pressure, and rising interest rates will have a further moderating influence.  However, the increase in net immigration flows will remain an offsetting influence”

Cherry Mortgage Solutions Ltd

P O Box  27 - 070 Mt. Roskill
Auckland 1440
New Zealand

Ph  : 09 625 3800
Fax : 09 625 3801
(M) : 021 82 7575
Email: info@cherrymortgage.co.nz

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