The Mortgage Man - A podcast for everyone with or wanting a mortgage

By Aaron Cattell (The Mortgage Man)Education How To

The Mortgage Man - A podcast for everyone with or wanting a mortgage episodes

March 03, 2022 #23 KiwiSaver & War - What Should You Do If Your Balance Drops?
A lot has happened in the last 7 days.

For most of us, the new war is so far away that we are not affected by it too much; apart from maybe the disbelief that war still can happen in 2022.

Regardless, the one thing that does react to overseas invasions is our investments and KiwiSaver balances.

You might have seen your balance drop; so what should you do? Change funds or ride the wave?

That depends on what you are using your Kiwisaver for and the timeframe that you think you will withdraw it.

Chris and I, coming from our new office in Takapuna talk about what you should do and what you should not do in these very interesting times.

And like always; if you need individual advice please email [email protected]
13 min
February 24, 2022 #22 Equity vs Usable Equity & Income vs Usable Income
Two very different things.

Although you might think you earn enough money to get a mortgage that doesn't mean the bank agrees.

Bonuses, commissions, self-employed income, and rent are viewed differently at banks than in the real world. This is because a mortgage is for 30 years so they want to make sure your income source continues to be reliable, and if it's not or is new then it's unlikely this will be factored into the income side of the bank's equation for your application.

Equity - don't get confused, this isn't free money, it is a loan secured against an asset, and the amount of "useable equity" depends on what that asset is used for (home or investment property, new build or not) and who is giving out the money.

A lot of things to expand on and that is why Ant & I did this podcast.

Need help? [email protected]
17 min
February 17, 2022#21- A Buyer's Market Is Here - How can buyers make the most of it?
Everyone is already talking about it, so what exactly is a 'buyers market'?

We haven't had one in a while..

In its simplest terms, a buyer's market is when the conditions of the market suit the buyer's rather than the seller's of properties.

These conditions can be things like..
An oversupply of property listings for the number of buyers looking. eg, more houses on the market mean more choice for the buyer and less negotiation power for the sellers.

Policy changes eg, the new CCCFA policy has scared a lot of buyers away so there are fewer buyers to compete with and fewer buyers looking at the listed properties resulting in sellers needing to lower their expectations of price (this is long overdue)

Interest Rates, eg now that interest rates are going up there are fewer people with the FOMO mindset and more with the holy sh*t can we even afford a mortgage mindset. This means, like the point above, fewer buyers and less competition for the same number of properties.
All of these things compile to give some very good buying opportunities. This does not mean that house prices will drop (I don't see that happening).

More so it means that there will be less pressure to get an offer in because fewer houses will go to multi offers. There will be less chance of you overpaying for an average property (hopefully the real estate agents relay honest price expectations to their clients). You might even be able to bag a bargain on those fringe properties like the ones in slightly less desirable areas, or those that have building/CCC issues or are just plain ugly.

But, don't get me wrong, the good properties will still sell so if you want those ones you'll still need to be a bit aggressive in your search.

The first step is to make sure you are ready to buy; that comes in the form of a pre-approval so you can pull the trigger on a purchase when that right-priced almost perfect property comes along. Email us [email protected] to start the ball rolling
16 min
February 04, 2022 #20- A Relocatable Home; A Case Study. How to Make Money & Save Time by moving a house onto your land w/ Anthony Browne
How to make money & save time with moving an existing house onto your land to make a home.

Property prices are getting expensive, especially when buying new...

Building costs are also at an all-time high.

There must be a cost-effective way to get into the market without having to live in a shoebox-sized apartment or unit.

If you have the know-how and persistence then a relocatable could be the answer.

No doubt you've thought about it, buying a piece of land then moving either an existing house or new house onto the land.

But how much does it all cost?

Is it worth it?

Can you get the bank to pay for most of it?

And how do you keep the council happy?

Someone that will tell you that embarking on a relocatable project is 100% worth it is Anthony Browne, who is actually a mortgage broker here at Tanta (as you probably know) and has just finished moving an existing property from a development site on to some land he brought in Riverhead.

This podcast episode is a case study of what he did, what he learned, and why he would do it again.

We cover how much each element cost, what to look for when buying the land, how to get an existing property for close to nothing, and how to keep the bank and the council on your side.

If you have specific questions for him please feel free to email him at [email protected]

37 min
February 01, 2022 #19 - How To Make Your Bank Statements Look Good For The Bank
You asked for it, so we created it.

With the new CCCFA policy rules, we are seeing a whole new wave of media fearmongering headlines.

No, you will not get a mortgage just because you have KFC- there is much more to it.

But you will be declined if your bank statements show that you are living outside your means, or if there are some red flags on them.

So how can you make sure your bank statements are presented to help your application?

What things are considered "red flags"?

Should you have separate accounts for different spending expenses?

Should you take cash out to spend on things?

Lots of questions, and this week I am joined by our operations manager and admin extraordinaire Michelle who has looked at more bank statements than an IRD auditor.

We go over the things mentioned above and give you some extra tips on how to ensure you have your mortgage approved at the level you want.

Have a listen, and if you want us to look over your statements before applying for a mortgage then just email us at [email protected] or [email protected]

15 min
January 20, 2022 #18 - The New Rules Ain't That Scary; How You Can Still Get a Mortgage
2022! The best shot you have of buying a house...seriously!

But then again, last year was even better...

And before that the previous year too...

The best time to buy in NZ was last year the next best time is now (ancient Chinese proverb modified for the NZ property market)

Here is the thing, there are always new rules and other reasons why some people find a reason to "wait and see". Unfortunately, you could be waiting a while.

The latest change that has been splashed across the headlines is the new CCCFA rules, for you, that means banks are looking closer at your spending.

You've seen the headlines of mortgages being declined because of a trip to Kmart or overspending at Christmas - but those headlines aren't telling the full story.

That just doesn't happen.

Mortgages are based on income vs expenses at a scaled rate. If you spend "too much" this might just lower your pre-approval amount, if it was going to be a decline then this would be because of something a lot more serious than one trip to the shops.

In this week's podcast, we dive deeper into the new rules and why they aren't that scary, how you can still get a mortgage, and other opportunities in the market right now.

Top takeaway - get a mortgage broker to look at your spending before sending it to the bank so that they can prepare you for what the bank is looking for.

Need help? Email [email protected]
19 min
November 28, 2021 #17 - Watch Out First Home Buyers; Even More New Rules
November has been a big month for changes in the mortgage world.

We've had the fastest increase in interest rates ever which has resulted in higher test interest rates at the banks. We've also had CCCFA come into play resulting in banks being more strict with how they look at expenses.

We've also had more Debt To Income ratios being used and some banks shutting shop to ALL buyers with less than 20% deposits.

It is safe to say, things have gotten tougher - all in the hope of slowing down house prices (should just build more houses).

What does this all mean for you?

Have a listen!
20 min
October 08, 2021 #16 - What's a Buyers Agent & Should you get one? w/ Arie Harris
Can you really trust a real estate agent when they are working for the seller?

From me, that's a big NO.

In fact, I really despise the games that some real estate agents play, especially with First Home Buyers.

Some of these "games" are listing the property in a Trade Me price range well below what they think it will sell for or getting your hopes up for an auction so that you spend money on a builders report, valuation and lawyer only to miss out by $100,000s.

Those sketchy tactics are just a few reasons why I don't really trust them, and of course, they are working for the seller, not you.

Wouldn't it be great if you could get a real estate agent to actually work with your best interests at heart? They would cut through all the jargon and find properties that you actually have a chance of purchasing. Well, that is exactly what a buyer's agent does.

Now more than ever, people need all the help they can get with buying a property.

In this podcast episode I wanted to go over buyers' agents, with an actual agent that has acted on both sides of the transaction.

How do you find one?

How much do they cost? (nothing)

Should you get one?

With my old mate Arie Harris we cover the above topic plus more.

Have a listen and let me know how you get on.
24 min
September 23, 2021 #15 - September Market Update & New Opportunities
This might just be the best episode of the podcast we have done so far. NZ is at a turning point in its property market (or so we are told)

The supply vs demand calculation is slowly tipping - will this slow down house prices or is it not that simple?

Chris and I discuss the massive 25%+ year-to-date increase in house prices, rising interest rates, immigration numbers, consents, and other things we think that might affect the next 12 months.

We talk about risks and opportunities for first home buyers and investors alike.

And the big question - should I wait to buy?

Have a listen - it's good.

Then let us know what you think [email protected]
27 min
August 25, 2021 #14 - How Will This Lockdown Effect Prices & Interest Rates?
Amidst another lockdown, Chris and I chat about how this time round (Aug 2021) will affect house prices and interest rates.

Last time we saw rates drop and this was a massive factor in how quickly house prices and inflation increased.

Will that happen this time around?

And what about mortgage deferrals? What can you do if you can't pay your mortgage?

Are settlements still happening?

Listen in and if you need to get in touch, email us at [email protected]
17 min