Daily Archives: November 20, 2008

Marks Mortgage Commentary – Nov 20th

As mentioned earlier here’s Marks first comments, the first installment of regular comments from NZ’s 2008 No. 3♣ Mortgage Broker.

In this last quarter of 2008 NZ property owners have billions worth of fixed home loans up for renewal. In late 2004 our banks aggressively discounted to generate 2 year fixed loans customers. As a consequence many property owners renewed their 2 year loan for a further 2 years in late 2006.

One of my clients faced a fee of “over $15,000 and closer to $20,000” for breaking their fixed-term mortgage.

Another of my clients was able to get the full 100 percent mortgage by borrowing 80 percent from one bank and 20 percent from another. There are still 100 percent lenders out there. Even so, people have still got to show they can service the loan.

I had an example recently of two teenagers who were buying a property. Mum & Dad had gifted them enough for a deposit. Their application was declined by their own family bank but accepted by another one, through me.

With the current financial turmoil happening around the world, many banks have taken an axe to their lending manuals and policy.

I’m often asked “What does this mean for the client?”  – it means one word, Problems.

A recent example illustrates this;

Client A goes to their own family bank to request a $20k top up. Their family bank declines this request due to this new more stringent current lending policy. However by using an Accredited Mortgage Broker (NZMBA Approved) this very loan could be sourced from another lender.

Every person is different and each has their own individual circumstances and needs.

Its because of this that each person requires a tailored approach to have their respective loans approved.

Regards, Mark Papps

♣ NZMBA – Nelson Marlborough Mortgage Broker of the Year 2006, 2008

♣ NZMBA – New Zealand Mortgage Broker of the Year – 3rd for 2008

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Mark Papps is the Manager of Nelson Marlborough Mortgage Services. He specialises in Home Loans.

Village People – retire to Nelson

Evening Beach Walk Retirement ~ Don’t even mention the word!

The Nelson region has for many years seen people retire here from other parts of the South Island, be it for the sunshine, the lifestyle, family or just a desire to have a city life after years & years spent in a rural areas or on a farm.

A fresh trend has seen the emergence of new build fully independent townhouses contained within a village type atmosphere, while still having access to all the normal facilities.

In recent years there have been two of these multi-million dollar “retirement” villages constructed in Nelson. Rymans have just about completed the “Ernest Rutherford Retirement Village”.

And Auckland project design company Lifecare Solutions is building  “Gracefield“, what they say will be NZ’s first resort-style residential development for older kiwi’s, but point out that it does not want to call it a retirement village.

Alongside these we have plenty of more established and traditional players as well.

For a quick snapshot of the local scene, Tasman District Council publish a great magazine called “Mudcakes & Roses“, a magazine especially for people aged 50 and over, it contains activity programmes from many of the recreational groups in the area and articles on interesting people and events. Mudcakes and Roses is full of great ideas on how to stay active mentally and physically in later years.

With Nelsons wide range of activities, events, places and destinations suitable for over 50’s there isn’t enough space here to do each one justice. If there is any subject you would like more in depth knowledge of just let me know. All the best till next time.