Find out the answers to some of our frequently asked questions. Get in touch if you can't find the answer you're looking for, we're here to help.
Find out the answers to some of our frequently asked questions. Get in touch if you can't find the answer you're looking for, we're here to help.
A: Focus Financial Group is a Mortgage and Insurance Brokering Service. Started in 2009, Focus is wholly NZ owned. We are a boutique service. That is, we have grown from a solid base of long term clients who chose Focus and its team of people based on their personal reputations, experience, trust and service.
We are not about high volume deal processing, but have an underlying and fundamental, ethic of quality and personal service. Focus is based in Christchurch, but we regularly deal with clients from all over the world. We have an exceptionally high percentage of referral business and almost everyone who has worked with us, refer people to us.
A: Our mortgage and insurance broking service is free to you on mortgages over $100,000. On regular home mortgages, we are paid a commission from the lender ranging between 0.5% and 1.00% of the loan amount. On a Welcome Home Loan, the current fee is set at $350.00. From this comes all of our costs in processing and following up this loan on your behalf.
And, before you ask, we do not favour lenders who pay a higher commission! We remain committed to our clients, preferring a long-term partnership to any short-term gain. We remain impartial and committed to your best interests.
Some insurance companies pay what is known as a trail commission. This is a small commission paid regularly to ourselves based on the type of insurance you choose. It enables us to manage your insurance on a regular basis to ensure that the cover is still suitable for your current situation. This can change from year to year as children arrive, you upgrade or downgrade your home, employment situation changes, etc.
A. The simple fact is this: If you deal with any bank or similar type lender they can only present to you choice from the range of products that they offer.
Mortgage Advisers like us exist to offer access to a broader range of products, highly personal service, substantial experience and a great range of options to suit you. We work for you to ensure the process is easy, transparent and as stress-free as possible.
There is no one size fits all solution. Every situation and client is unique. Rather than you having to fit the lenders requirements, we will find the option that best suits your individual requirements! We talk their language so you don't have to.
Working together, we discuss financial information that enables you to make informed financial decisions. Our goal is to present the options and information in a straightforward, no-pressure way.
We don't pressure you into making decisions about your choice of Home Loan provider, but we can easily and quickly provide direction on the best choice for you.
We will take care of all the running around, paperwork and dealing with lenders. Use our time, not your own. The benefits are obvious: multiple options for you to consider, all arranged and presented at a time and place convenient to you, and at no cost. The broker works for you.
A: Up until the last year or so, lenders were prepared to extend mortgages of up to 100% as the price of houses (and therefore, the equity) built up quickly during that high growth period.
Then, the bubble burst, which has been widely reported in the media. Lenders quickly readjusted their requirements for the new economic conditions. Now, most banks (or similar lenders), will only lend up to 80% of the Loan to Valuation ratio (LVR). That being the property's registered valuation or purchase price. Some of the major banks have increased their LVR to 90% of the property's value. Although the criteria is quite strict in these cases.
If you have an impeccable banking history and above average income, the amount you can borrow may be higher. There are other options that may assist a higher loan percentage. Ask us for assistance.
Remember, it is the lender's job to protect their investment (the loan). So they will typically be less optimistic than you! There are generally two key criteria:
1) Can you still afford the lending if interest rates increase by 1% or more. This affordability is generally calculated over a 30 year loan term with a very strong focus on your day to day expenses. If you are applying for over 80% LVR lending then they will likely calculate the term over 20 or 25 years.
2) How much is your deposit and where has it come from? Is it saved, gifted or borrowed? This deposit of course determines the LVR. Generally, the greater the deposit, the more approachable and flexible the bank will be with your loan application.
How much you can borrow is determined by an array of different considerations such as income, dependents, employment history, deposit (is it saved or gifted?), expenses, personal loans, hire purchases etc. We help prepare this information for you and the lender to provide a solution that works for both you and the lender.
A: The problem with getting a normal home loan is, for many people, finding the deposit. The Welcome Home Loan, which is supported by Housing New Zealand, can remove that problem although specific criteria needs to be met. The maximum loan amount that can be borrowed under the Welcome Home Loan is currently $350,000 and only available in selected areas.
With a Welcome Home Loan, your dream of owning your own home is now one big step closer. You can:
For more details on the areas now eligible for a $350,000 loan go to www.welcomehomeloan.co.nz or talk to your Focus Financial Broker. We currently deal with the following lenders for Welcome Home Loans: KiwiBank, Southland Building Society and CBS Canterbury.