F.A.Q

Provide expert advice
At Good Shepherd, our advisers are licenced with 20+ banks and lenders, and has the experience and knowledge to provide you the best solutions fits your financial circumstancesa nd needs.

Help you negotiate with multiple lenders
Banks only sell their own products, but the mortgage brokers are not. Our mortgage brokers have a wide network of banks, contacts & expertise to assist you in finding the best solution for nearly all financial circumstances

Save your times - Support if thing don't go your way
You may find this isn’t with your current bank – which can save you some time. You will only need to complete one application form with your broker. If you go direct you’ll need to go through the same process multiple times.

Act in your best interests
This may mean you have a better chance of success with your application. Your broker will handle negotiating the terms and conditions of your loan on your behalf. This means they speak the same language and can negotiate the best deal for you.

Don’t cost you anything
Mortgage brokers are paid by the banks after securing your mortgage in most cases, which means they don’t cost you anything.


Click here to find out Good Shepherd mortgage advisers.

The main process to apply for a loan:

STEP 1 - FIRST CHAT
We get to know you, and ensure you know what we do and how we do it. We’ll talk about what you are trying to do, your goals and ambitions, and whether we can help you.

STEP 2 - UNDERSTAND YOUR SITUATION
We’ll gather information from you including family details, income and assets and other financial information.

STEP 3 - RESEARCH AND RECOMMEND
We’ll research the market and ensure our recommendation is the most competitive solution for you, and best suits your needs.

STEP 4 - LODGE YOUR APPLICATION
We’ll work with you and the lender, and do the legwork to get you pre approved.

STEP 5 - APPROVAL MOMENT & PROTECTION
Congratulations! This is what we live for. Now you know what you can afford and have the thumbs up from your lender for what you need, when you need it. We’ll confirm the details with you. We will also see if we can help you get protection for your home and loved ones should anything go wrong.

STEP 6 - SETTLEMENT PROCESS & BEING TOGETHER FOR THE LONG HAUL!
We’ll also be there for you during the settlement process to keep an eye on it all and let you know everything has gone smoothly. This is just the beginning of our partnership. It’s my ambition to help your financial future thrive. I’ll be in regular contact with you to check in and review any changes to your situation.

Generally, you won’t be charged any fees for our service as the lender pays us the commission on the settlement of a loan. There are some exceptions to this and these are outlined in our Disclosure Statement.

The LVR stands for loan-to-value ratio, which is a measure of how much a bank lends against residential property, compared to the value of that property.

Example: Buying a home for $800,000, you have a deposit of $160,000 and need to fund $640,000 which is 80% of the home's value - making your LVR 80%.

• A maximum LVR of 90% will apply to owner-occupied property.
• A maximum LVR of 65% will apply to lending which is secured solely by an investment property.
• The maximum LVR for lending which is secured by both an owner-occupied and an investment property will be based on:
  - 80% of the owner-occupied security.
  - 65% of the non-owner-occupied security.

Applications that fall within the RBNZ LVR exemptions policy may not be applicable.

If you want to buy a house, but your deposit (down payment) is less than 20% of the value of the house, then this is a low equity home loan. Different from ordinary loans, because your deposit is less than 20% of the house value (>80% LVR), then the bank will charge LEM/LEP, and your deposit balance is about less. umi) requirements will be greater.

A Low Profit on Equity Margin (LEM) or Low Equity Premium (LEP) is an additional fee you have to pay because your deposit is less than 20% of the purchase price of the property. Some lenders charge it as additional annual interest.

Here's an example that interprets LEM as extra interest expense:
You buy a property worth $800,000
Your deposit is $100,000, which is 12.5% ​​of the purchase price, so your LVR (loan-to-value ratio) is 87.5%
You borrow $700,000 at a fixed rate of 4% for three years
Because your deposit is only 12.5%, the lender will add 0.75% to your interest rate
Add it all up and you pay 4.75% interest per year

But over time, when you've paid off some of your loan or your home's value has risen, your equity may reach more than 20%, so you can check to see if you're still required to pay a low-equity bond. If your mortgage was below 80% LVR, and now it's above 80% due to your home's falling value, you won't be required to pay a low equity deposit. Banks are unlikely to want to put financial pressure on their customers.

P&I stands for Principle and Interest. 
This is the most common type of home loan. You can choose a term of up to 30 years with most lenders. Most of the early repayments pay off the interest, while most of the later payments pay off the principal (the initial amount you borrowed).
Advantage
Regular repayments will keep you on track for the term of your loan so you know when it will be paid off.
Remember
You need to make regular repayments to pay off your loan during the term. Paying off your loan early could result in fees.

I/O stands for Interest-Only.
You pay the interest-only part of our repayments, not the principal, so the payments are lower. You can take an interest-only loan for a year and up to 5 years (depending on the property occupancy) and then switch to principal and interest.
Advantage
Your initial repayments are lower, as you are only required to make interest repayments.
Remember
Your repayments are only covering interest, so your actual loan principal is not reducing.

You can use your KiwiSaver to withdraw savings for your first home deposit, if:

• You've been a member of KiwiSaver for at least three years.
• You're a first-time property or land owner.
• You must intend to live in the property you're buying or build a home to live in on the land you're buying. It cannot be used to buy an investment property.
• The property or land is in New Zealand.
• It's the first time you've made a KiwiSaver withdrawal to buy a home.
• If you have previously owned a home before, you may qualify for a previous homeowner withdrawal through Kāinga Ora.

For more details please visit Kāinga Ora

Fixed interest rate:
Fixed rate mortage can make financial planning easier, as it is very stablize when the loan is fixed for a specific period. By all mean that it makes budgeting alot easier as the repayment amount would be the same for each repayment. However, the downside for a fixed interest rate is that penalties may occur if you want to make an extra payment, and also if interest rate decreases, your repayments stay the same for that specific fixed period.

Floating interest rate:
Floating interest rate are commonly more flexiable when compared with a fixed interest rate, as it allows to make repayments anytime without any penalties. Also, the repayment rate will decrease as interest rate gets lower, but it also have the risk of having higher repayment rate when interest rate gets higher.

The maximum term is 30 years, but for some borrowers over 55 years old, the lender will consider the borrower's own situation comprehensively, which may depend on retirement age, repayment ability, equity, etc. The bank may reduce the loan term at its discretion.