Home Loans -> Frequently Asked Questions
At Cherry Mortgage Solutions we provide most appropriate and innovative Home Loan solutions and act as trusted financial advisors for all your financial needs. Our top expert has more than 20 years experience as Manager in banking industry in New Zealand, London and other overseas centres and brings best deal available in lending industry. Our clients are our most valuable assets.
1) When should we contact a Broker?
2) How much can I borrow?
3) What are advantages of getting pre-approval for my loan and how do I get it?
4) Do I need a deposit while raising home loan?
5) How do I know that a Broker is fair and doing a good job for me?
6) Why should I choose a Cherry Mortgage Broker and what is different?
7) We are paying lot of money every month but our debt does not appear to reduce much. Can you help us?
8) My fixed rate mortgage is due for refixing soon. Can you help me?.
9) I am feeling financially stressed. Can I reduce my repayments?
10) Sometimes I hear words “Mortgage Stress”. What is it?
11) What is benefit of placing all short term debts in mortgage?
1) When should we contact a Broker?
a.) While Buying/selling your property – to know how much you can borrow.
b.) When interest rates are expected to change substantially and also continuously.
c.) Fixed rate expiring on your current mortgage. This is the time you can improve your mortgage structure and the mortgage broker will shop around for you and advise you as most appropriate structure and what best deal is available.
d.) Consolidating your small loans into mortgage to save cost, reduce your payments by paying over longer period
e.) Struggling to manage your mortgage payments. Broker can come and examine your loan structure and restructure it to make your life easier.
f.) If you have any doubt call us. Our advice is free, fair and what is best in your situation. It can result in saving you thousands of dollars. 
2) How much can I borrow?
The amount you can borrow depends on your income, regular expenses and current interest rates for home loans. Your broker can give you an idea as how much a bank can lend you. As a thumb rule at current interest rates, you can borrow four times of your gross annual income if you do not have any personal debts. As an example if you have a family income of 100K per year gross, and have two kids and no loan, you can borrow say around 375K at current interest rates..
This is an indication only and not a pre-approval from any bank/lender. To know exactly how much a bank will lend you, contact us and we will come to complete an application, move to banks and advise as what best pre-approval you have got. It costs you nothing.
3) What are advantages of getting pre-approval for my loan and how do I get it?
On the basis of your income, expenses and other financial commitments, a bank can advise how much a they are prepared to lend you.
Once you know your pre-approved amount, you can accordingly make an offer on the property or participate in a home selling auction as you now know how much loan you can get. Without pre-approval, it is uncertain as how much a bank will lend you
Pre-approval does not cost you anything, It is generally for 90 to 120 days. Bank giving pre-approval is not seeking any commitment from you to buy a house.
We will talk to you as what information is required for getting pre-approval and arrange to get it for you.
Vendor and their agent take you as more serious buyer vis -a- vis another buyer who does not have loan pre-approval.
4) Do I need a deposit while raising home loan?
Yes, invariably. Banks are currently asking for a 20% deposit to raise home loans. It means they are lending 80% of home value at the maximum. But if you are in a stable and professional job for a few years, have absolutely no credit issues and have good income to comfortably service the debt with more than 100 to 1200 dollar monthly surplus income(after paying all your regular payments) , have no other major loans, banks consider lending you even upto 90% to 95%. We can arrange loans upto 95% both for own home and rental property or refinance your existing loan. Talk to us!
5) How do I know that a Broker is fair and doing a good job for me?
Our brokers are members of New Zealand Mortgage brokers Association(NZMBA) and follow their code of ethics and standards. We disclose to you, our experience, range of lenders, background and qualifications and professional financial indemnity, upfront when we meet you. We advise you the steps involved in getting a loan/its pre-approval and what documents are needed.
We make the process very transparent and ensure what you see is what you get. If we recommend a deal to you we advise you why it is best for you. Unlike what most people think, it is not just interest rate alone that should influence your decision, the bank fees, servicing and flexibility in loan structure which will suite your changing situation are all very relevant and important and must be considered when you choose a bank's offer.
6) Why should I choose a Cherry Mortgage Broker and what is different?
We always have your interest at our heart. We work for you. With our banking experience of more than two decades, we know what is available and what is best option for you as borrower and is best for you. We offer friendly professional advice over the phone for free.
Most of the time there is no fees for mortgage as we get our commission from lenders. However, in those few cases where there is charge for our services we disclose it in advance. We work for long term relationship. A mortgage is a huge commitment and we remain with you to provide always what is best for you.
We also offer you risk protection and insurances and take care of it all so that you concentrate on your work and have peace of mind.
7) We are paying lot of money every month but our debt does not appear to reduce much. Can you help us?
We can look into your entire debt structure and advise what is wrong with it and how you can reduce your debt faster with same repayments. Our experts will get it restructured to your best advantage which can save you lot of money.
8) My fixed rate mortgage is due for refixing soon. Can you advise me as what is a good option?
Definitely. We will examine your current loan structure, look into your current financial situation and advise best options available and arrange accordingly.
9) I am feeling financially stressed. Can I reduce my repayments?
Yes, our experts can restructure your repayments and if possible can reduce also.
10) Sometimes I hear words “Mortgage Stress”. What is it?
When people are struggling to meet all their commitments, it is ‘Mortgage Stress’. Late or missed payments, dishonours, penalty rates all create mortgage stress i.e. the stress of staying on top of your mortgage payments. We are just a phone call away. Give us an opportunity to help review your finances and take the stress away!
11) What is benefit of placing all short term debts in mortgage?
This is called debt consolidation. We can arrange consolidation of your small debts with your mortgage debt. Mortgage against residential property is the cheapest debt payable over long time whereas short terms debts are much costlier.
Debt Consolidation gives you three major benefits.
(1)Your interest rate is reduced.
(2)You have to manage just one debt instead of managing many.
(3) Debt can be paid over a much longer period depending upon
how much you can afford to pay on regular basis. We strongly recommend debt consolidation to all our clients where feasible.
These are some most frequently asked questions in home lending. While these may not reply all your quries, we have tried to cover major concerns of Home Buyers. We will love hearing from you any question that comes to your mind or if you need more information on any topic in home and business lending.
