All posts by Platinum Mortgages Editor (Previously KWD)

How Bridging Finance Works

Bridging Finance is what you need when you want to buy a new home, without first selling your existing property.

Bridging Finance may be exactly what you need to:

  • Purchase the home of your dreams
  • Increase the size of your property portfolio
  • Upside or downsize your existing property
  • Aquire a new property before selling your existing property

What is Bridging Finance?

Bridging finance, or a bridging loan, is a short-term home loan. It aims to provide homeowners with a loan to purchase a new property before you sell your existing one.

Closed and open bridging finance are the two main types of bridging finance accessible.

Closed bridging finance typically involves a bank. This is when the sales on both your new home and current home are unconditional, and all you need is to bridge the gap between the two settlement dates.

Closed bridging finance usually has a maximum term of 12 months.

Open bridging finance usually involves second-tier or non-bank lenders. You may consider using this home loan option, when you are wanting to purchase another property without first having sold your current home.

The Pros and Cons

Bridging finance can be a complicated affair. Therefore, if you are considering taking out a bridging loan, we strongly advise that you consider both the benefits and disadvantages of this method of financing.

The Pros

Knowing that you have financial support to tide you over, will help you search for a new home with confidence, even if you haven’t sold your existing property. It would also allow you to purchase your new dream home without selling your existing one first.

You may have the option to pay only interest on your bridging loan, or even to capitalise the interest completely. This can make it much easier to manage your repayments. Again, we can advise you of the advantages and disadvantages of both.

You could use any money left over from the sale of your current property to pay off your bridging loan. This allows you to pay off your bridging loan faster and with less interest.

The Cons

Your current home may not sell right away, leaving you paying interest for longer.

Your existing property may also sell for less than expected, leaving you with more debt than you may have initially planned for.

Need Bridging Loan Solutions? Platinum Mortgages Can Help

Here at Platinum Mortgages, we offer an extensive range of bridging loan options for borrowers New Zealand-wide.

We can provide you with the solutions for both open and closed bridging loans. This will give you the confidence to purchase your next property, while waiting to release profits from a previous venture.

Because no two people are in the same financial situation, we ensure that our lenders’ bridging loans are tailored to your specific needs. They’ll offer you quick, hassle-free finance at competitive interest rates, perfect for the loan term required.

Our Bridging Loan Options

Option 1: Main Bank Bridging Loans

Through major banks, we arrange closed-ended bridging finance. We propose this as a first port of call because interest rates are typically lower and there is less risk.

Under this option, we can help you approach a main bank once your property has sold and you have a settlement date locked in on your existing home.

Both homes will be secured, and you will have to service both mortgages at the same time.

Our main bank bridging loans are subject to servicing and affordability.

How Bridging Finance Works

Option 2: Second Tier or Non-Bank Lender Bridging Loans

We also offer open-ended bridging finance options.

You would choose this option if you have no settlement date yet on your existing home and intend to sell it in the next 6-12 months.

We assist you by approaching non-bank or second-tier lenders. They will enable you to purchase a new property, while your old mortgage is transferred from your current lender.

Security will be taken over both properties. Unlike Option 1, a lender fee as well as a broker fee will be added to your loan, though this can be negotiated. You’ll be charged with higher interest rates, because the lender is taking on greater risk.

There are options to service both mortgages at the same time, make interest-only repayments, or capitalise the interest entirely with a big balloon payment once your existing property sells.

However, keep in mind that if you opt to capitalise the interest, it will continue to be compounded weekly or monthly, potentially resulting in you paying more interest in the long run.

Gaps in cash flow are a natural part of life. If you are on the hunt for a bridging loan to help you settle on that dream property before you’re ready to sell your existing one, Platinum Mortgages can help.

To learn more about our bridging loan options or schedule a consultation with us, please get in touch with our team of professional, qualified Mortgage Brokers / Financial Advisers at or 0800 LENDING (0800 536 346).

Why Should You Get Expert Advice From A Mortgage Broker?

A Mortgage Adviser / Mortgage Broker simplifies the home loan application process and facilitates easier decision making. Taking on a mortgage is one of the most significant decisions you’ll ever make. Because of the importance of this decision, it’s crucial that you do it correctly. Making the right choices on your own can be difficult.

Working with a Mortgage Adviser / Mortgage Broker can save you money, time and help you avoid unnecessary stress.

What Do Mortgage Advisers / Mortgage Brokers Do?

A Mortgage Adviser / Mortgage Broker is a person who assists you with the process of obtaining a mortgage. They will find you a good deal, save you time and advice you on everything you need to know. When you work with them, you are working with someone you can trust who knows precisely what they’re doing.

Why Should You Use A Mortgage Adviser – Mortgage Broker?

Why Should You Use A Mortgage Adviser / Mortgage Broker?

There are many advantages to using a Mortgage Adviser / Mortgage Broker to help you get a great deal. If you have any questions, you will be able to rely on them for thorough explanations and answers.

Our Mortgage Advisers / Mortgage Brokers find you the most suitable lender and mortgage solutions, which are tailored to your needs.

Mortgage Advisers / Mortgage Brokers will shortlist your mortgage options based on the rates, deposits, upfront fees and the mortgage’s term.

You could spend too much time, doing unnecessary things and end up with a mortgage that doesn’t work for you. With help, you will find the best options available and strike a fantastic deal to save you time and money.

Regardless of your personal financial position, a Mortgage Adviser / Mortgage Broker will work  to find you the best deal possible.

What Are The Advantages Of Using A Mortgage Adviser / Mortgage Broker?

Some of the specific advantages of using a Mortgage Adviser / Mortgage Broker are:

  • Convenience: They will help you with every step of the way, so you will know you are finding the best deals.
  • Cost-Effective: Using their industry knowledge, they often strike a better deal with lenders than a client would have themselves.
  • Access: Due to their experiences and professional relationships, they will often be in contact with a wide range of lenders. This means that they will be able to find you a deal that fits your situation perfectly.
  • Pre-Approval: They arrange a pre-approval of your mortgage so you will be able to know exactly how much you can borrow. This way, you can search for new houses with confidence.
  • Expertise: They are experts in a complicated field, so they will be able to explain to you complex processes in words you will be able to understand. 
  • High-Quality Service: If you are working with a good Mortgage Adviser / Mortgage Broker, you will receive high-quality service that will be incredibly helpful to your situation.




Want To Work With A Mortgage Adviser / Mortgage Broker?

Working with a Mortgage Adviser / Mortgage Broker can save you money, time and lessen your stress. If you are taking on a mortgage, why not get some help from an expert?

Here at Platinum Mortgages, we are prepared and ready to assist you with all your mortgage needs. Get started today or contact us on 0800 536 346 to start your journey towards an easier, more stress-free mortgage today!

What Is The Smartest Way To Consolidate Debt?

Do you want to consolidate debt and do so smartly? Most people have some form of debt, whether that be from credit cards, bank loans, home loans, or more. So, if you’re worried about your debt piling up, debt consolidation can be a good option.

However, if this is unfamiliar territory, you may be confused about how to get the process started. Don’t worry, when you work with a Mortgage Adviser / Mortgage Broker, the process becomes much more manageable.

What Is Debt Consolidation?

When you choose to consolidate your debt, you combine multiple individual loans into a single loan. By doing this, instead of paying off many different debts with varying interest rates, you can focus on paying off one loan with a set interest rate.

The resulting single obligation usually has a lower interest rate than the many prior debts. This means you’ll wind up paying back less money than you would have paid otherwise. Basically, by consolidating your debt, you save money and make things simpler.

When you choose to consolidate your debt, you will end up with a lower interest rate, reduced monthly payments, improved credit score and more. This is why it’s crucial to get an expert’s opinion and make the right decisions, so you can maximise your benefits and save money.

What Is The Best Way To Consolidate Debt?

What Is The Best Way To Consolidate Debt?

There are several different ways to consolidate your debt. However, the best option for you will depend on your situation. If you want to figure out the best strategy to deal with debt consolidation, speak with a knowledgeable Mortgage Adviser / Mortgage Broker.

Why Should I Work With A Mortgage Adviser / Mortgage Broker?

When you work with a Mortgage Adviser / Mortgage Broker, you work with an expert who knows precisely what they are doing. They will seek out the best lenders for your situation, walk you through the complicated process, and find you the best deal for your specific situation.

Platinum Mortgages’ skilled team of Mortgage Advisers / Mortgage Brokers are well-equiped to scrutinse every aspect of your financial situation. They make certain that the process goes down without a hitch.

If you want to save time, spend less money, deal with less stress and end up with the best deal available to you, you should work with a Mortgage Adviser / Mortgage Broker.

What Is The Smartest Debt Consolidation Option?

Overall, talking to a competent Mortgage Adviser / Mortgage Broker and getting an expert’s opinion, customised to your unique needs, is the smartest method to combine debt. At Platinum mortgages, we are here to help. Before you choose an option, talk to one of our specialists to figure out which choice is best for you.

Ready To Consolidate Your Debt?

At Platinum Mortgages, we assist New Zealanders to consolidate debt and find more affordable repayment options for their loans. So, if you want to know more about consolidation of debt, find out if it’s the right move for you. Alternatively, if you are ready to start now, contact us at 0800 536 346 for further information.

Don’t let your debt build up until you can no longer handle it; speak to us today and let us help you!

5 Reasons an Income Property Is a Great Investment

I was asked whether there is any reason an income property is a great investment? While there are endless ways of investing your money in this modern-day age, you need to ensure you choose what is right for you. Historic trends indicate that owning an investment/income property is one of the safest and most secure methods for growing your money. 

The average rental price in Auckland continues to climb. The annual return you will gain from rent income will likely be higher than a bank can offer you in a term deposit. It’s also important to get the bigger picture of what income property investment means, and the numerous ways it can provide you with a solution for wisely investing your money. 

To better understand what the property market has to offer you and your money, we’ve listed the top 5 reasons why a rental property is a sensible investment for you.

1. Passive Income

An income property offers you the peace of mind of knowing that your money is locked into a secure investment. Once your mortgage’s outstanding balance is low enough, your cash flow will turn positive, generating you a passive income.

Our Financial Advisers / Mortgage Brokers are happy to chat with you about your unique financial situation. We’ll let you know whether an investment property and the rental payments it generates, are a good solution for you and your circumstances.

2. High Return On Investment

5 Reasons an Income Property Is a Great Investment

House prices tend to rise over time, especially due to inflation and a greater demand for housing than available supply. As a result, the correct investment property can deliver a significant return on your investment – especially if you choose the right neighbourhood.

Investing in real estate to make money is one of the simplest and most flexible ways to secure your finances. You’ll have the option of selling your asset when you’re ready, or renovating your property to increase its worth.

3. Low Risk Investment

A great benefit of rental property in New Zealand, is its moderate risk based on historic trends of high yields. Because you’re buying a physical asset with measurable growth factors and predictions, it’s a relatively secure investment. 

New Zealand homes median house prices continue to rise. This indicates that purchasing an income/investment property will assist you in covering the asset’s expenses. In addition, it allows you to benefit from the asset’s capital growth and eventually, supplementary income.

4. Adaptability

Do you want a small income property to supplement your income? Alternatively, do you prefer a larger section as a capital investment, which simply increases in value? Whichever your preference, investing in property can easily be adapted to your requirements.

With the security of land ownership and a regular supplementary rental income, an investment property offers you real financial gains without excessive risks. Furthermore, you have the option of purchasing an existing home or building a new one, depending on your goals.


5. Banks Are On Board

Banks are now backing new builds more than ever, so the time has never been better for taking the plunge. With ‘Back My Build,’ ASB bank has created a scheme dedicated to building more houses. This is regardless of whether you are going to live in them or rent them out. ANZ bank has also introduced a new incentive, ‘Blueprint to Build’. They offer a discount on their floating loan rate for new builds. 

The scheme allows you to put down a 10% deposit for a turn key property which makes the build process easier. This letting you simplify the build process by working with a single developer, concept to completion. You’ll get the benefit of a fixed price contract and a more straightforward, streamlined construction experience. Consequently, the time to build is now. 

In summary, reasons an investment/rental property is beneficial include:

  • Passive Income
  • Return on Investment
  • Moderate/Low Risk
  • Adaptability
  • Banks are on board

Want To Know More?

If you are interested in investing in an income property or exploring your home loan options, get in touch with the team at Platinum Mortgages. We offer you bespoke solutions for all of your home loan needs. We provide comprehensive market advice that will ensure you are able to make informed and good decisions about your investments.

What Is Debt Consolidation And Why Is It Helpful?

Making your life easier through debt consolidation is the surest and easiest way to become debt-free faster. Moreover, combining multiple accounts into a single account simplifies management and saves time and money.

Debt Consolidation

Debt Consolidation is the process of combining previous debts with many lenders into a single loan. The result is one payment instead of many. This is helpful to manage multiple existing debts, because you make one payment at one rate. Furthermore it helps you to secure better credit by using a single lending company. In addition, this also gives you the flexibility to negotiate repayment terms and interest rates. Consequently it could often save you money in the long run, as you can avoid multiple high-interest accounts and payment dates. 

Consolidating debt is often a smart way to keep your credit line stable and get rid of various debt streams. When you combine your finances into an existing mortgage, you are effectively elevating yourself from high-interest loans that can negatively impact your credit rating. 

What Can I Consolidate?

The first question people ask is, what loans and debts can I consolidate? Although the answer varies depending on the lender, most reputable Financial Advisers can readily transfer your debts from:

  • Credit cards.
  • Debts on store credit cards.
  • Hire purchase loans.
  • Personal loans from finance companies and banks.
  • Student loans.
  • Tax arrears.
  • IRD payments.

While these are your traditional forms of debt, many companies also include medical debts and most payday loans. All you need to do is ask. If you are struggling with making multiple payments to several agencies, consolidating your finances will help you stay on top. With just one simple payment to make, you can effectively create a new budgeting plan that is designed to work for you.  

The Benefits

If you’re suffocating in high-interest loans and credit card repayments, debt consolidation could be the answer to reaching your financial independence. 

With competitive interest rates and a single payment system you can keep up with, consolidation is easily the best solution for your financial woes. Attaining a single loan doesn’t just improve your credit score, it will effectively:

  • Provide you with a lower interest rate that is spread over a more achievable length of time.
  • Make budgeting easier with only one payment to manage.
  • Provide you with lower monthly payments.
  • Allow for possible tax deductions.
  • Allow the equity of your home to lower your interest rates. 

Where Do I Consolidate My Debt?

Even if the banks say no, there are still an array of options available to best suit your needs. It is however important that you thoroughly think about your long term financial plans and how quickly you want to be out of debt.

The best way to figure out where you can consolidate your debt is by working with a reputable financial agency. An experienced Financial Adviser will explore the variety of consolidation channels available to you and present you with the best options to suit your needs. Professional Advisers can secure you a competitive interest rate. They also help you avoid unnecessary costs such as fees for transferring your funds from credit cards and hire purchases. Enlisting in the expertise of a professional Financial Adviser will ensure you are provided with accurate figures and up-to-date advice, greatly benefiting the flexibility of interest rates and your repayment options.

We Are Here To Help

The team at Platinum Mortgages can offer you a complete debt consolidation solution. With leading market rates on all debts transferred and comprehensive consolidation services, our team of professional Financial Advisers can help you combine your outstanding debts into one easy to manage loan. Get in touch today so we can provide you with the right advice for managing your outstanding finances.

4 Non Bank Lender Advantages Over Mainstream Banks

Are you planning to buy your first home or a new investment property and wondering if there are alternatives or advantages to mainstream banks, such as non bank lenders? You might assume that your only option for a home loan is to go to a bank. Non-bank lenders can be a more viable alternative than you might think.

Non-bank lenders have increased competition in the mortgage industry. They have given homebuyers more options when it comes to getting the right loan for your needs.

4 Advantages of Getting a Home Loan From Non-Bank Lenders

What Is A Non-Bank Lender?

The term ‘non-bank lending’ refers to any lender who provides finance but isn’t a traditional, registered bank such as ANZ, ASB, BNZ and many more.

The Benefits of Getting a Home Loan From a Non-Bank Lender

Many non-bank lenders are well-established institutions. Non-bank lending can even offer you advantages over taking out a home loan through a bank. These benefits include:

Start-Up And Business Friendly

Banks often refer business owners to a specific business banking department. Their role is to understand your company and provide you with the lending you require. However many of these business bankers often end up being more a hindrance than a help.

It’s not uncommon for bankers to ask for business financials, budgets, projections and plans. This information is not always available to you as the client, when you need it. Platinum Mortgages can help you draw up a suitable plan, to get approved for the loan you need for your business.

More Flexible Criteria

If your credit is poor you know that you would most likely be rejected for a home loan by a bank. This is when non-bank lending may be a great alternative. Non-bank home loans usually have less restrictive financial criteria for potential borrowers. This also makes them useful if you cannot immediately demonstrate to a bank that you have the income level they demand.

If you have a default on your credit report, a bank will often dismiss you as a bad credit risk and decline your application outright. However, an experienced non-bank broker will take the time to understand your problem. They will present a plan to your lender to get your loan approved.

Lower Deposits

Banks usually require a deposit of 20% on a home loan. As house prices in New Zealand continue to rise, the deposit requirements rise as well. Consequently, getting onto the property ladder can seem like an impossible dream. This applies to most people, whether you , first-time home buyers, new immigrants, or anyone who has suffered a recent loss in equity.

However, the competition between banks and non-bank lenders and the greater flexibility offered by non-bank lending, means that they usually have lower deposit requirements than banks.

As a result, non-bank lenders have made home loans far more accessible for first-time buyers and others who may be turned away from traditional bank loans.

Non-Bank Lender

Specialist Knowledge

Because they’re subject to less regulation than a bank, non-bank lenders can offer more personalised customer service. Many focus on a niche product rather than a range of different services as well. This focus means that they often have specialist knowledge about a particular area, like the housing market.

Choosing non-bank lending for your home loan means that your Mortgage Adviser can often guide you through a more comprehensive array of options than you might get at a bank. Their expertise can help connect you with the best mortgage for your unique situation.

Buying a home can be one of the most significant investments you ever make. A Mortgage Broker from Platinum Mortgages, can give you expert advice on non-bank lending and help you find the best home loan for your needs. Get in touch with us at 0800 536 346.

Is It a Good Time to Refinance When Interest Rates Are Low

With interest rates at all-time lows, you might have heard about taking advantage of this time as an opportunity to refinance your mortgage. This can be a good decision, although there are many factors you need to consider before doing so.

In this article, we’ll examine why it’s worth considering refinancing your mortgage when interest rates are low. We will also look at the pros and cons this could involve.

What Is Refinancing?

Why You Should Refinance When Interest Rates Are Low

Refinancing refers to the process of transferring or swtiching a home loan from one bank to another.

Here are several of the advantages refinancing a loan can offer you:

  • Take advantage of another bank’s products, services, or cashback offers
  • Secure terms when interest rates are at all-time lows
  • Increase your short-term cash flow
  • Build up an emergency fund
  • Borrow money for renovations or investments
  • Cash out your equity for vacations, weddings, or asset purchases
  • Avoid putting all your eggs in one basket
  • Switch from a non-bank lender to a mainstream bank
  • Switch away from a bank offering a poor service

A common reason for refinancing a loan is to lock in a new mortgage at lower, more advantageous interest rates. This can reduce the total amount you repay over time.

You can also reduce the interest you face using debt consolidation. Cashing out the equity in your mortgage when interest rates are at all-time lows can allow you to repay short-term personal loans and credit cards, which often have very high interest rates.

If you can afford your current monthly payments, you could benefit from refinancing to a shorter term when interest rates drop. Your interest will have less time to accrue, which means that you will pay less for your loan over its lifespan.

Another reason to refinance a loan, is if you had bad credit and your credit rating has improved over time. You could end up with more preferable terms. This could end up saving you money in the long run, especially if you do refinance when interest rates are at all-time lows.

However, just because interest rates are at record lows, it does not mean that you should automatically look at refinancing your mortgage. There are also costs and risks to consider before making such a significant financial decision.

The Costs Of Refinancing A Mortgage

The Costs Of Refinancing A Mortgage

Legal fees, early termination fees on a current loan, and new house valuation fees – these are just some of the financial costs you can run into when you choose to refinance a mortgage.

All these various fees mean that if you switch your mortgage for an interest rate that is only slightly lower than what you are currently paying, even when interest rates are at all-time lows, you could actually end up paying more out of pocket in the long run.

So, if you’re considering refinancing your home loan, you must tally up all possible expenses to make sure that the benefits of switching really do outweigh the costs.

There are also situations where you aren’t likely to gain much from refinancing your mortgage. For instance, if you’re near the end of your mortgage term. You’re unlikely to see much benefit from refinancing your home loan in this case. This is because savings are usually accumulated over time.

As you can see, switching your home loan can be a big decision. That’s why, if you’re thinking about refinancing your mortgage. Perhaps the reason is because interest rates are at all-time lows, a Financial Advisor from Platinum Mortgages can help. Rates are changing and you wnat to make an informed decision. We can assist you with weighing up the pros and cons of making a switch, so you end up with the best loan for your needs.

To learn more, please contact us at 0800 LENDING today.

Real Estate Investment

How much deposit do I need to buy a house in NZ?

Buying your dream home in New Zealand is simple. You select the house you want to buy. Thereafter you put down a deposit as the down payment. Your lender covers the rest of the difference. That sounds easy, but you might ask how much deposit do you need to buy a house in NZ?

Before looking at properties, you need to save for a deposit. How much deposit you need, depends on whether you are buying the property as an investment property or you will be living in the property.

The mainstream banks’ requirement for a deposit to buy a home in New Zealand is also influenced by the circumstances. It is either 20% for a pre-approval or 10% when there is an existing offer in place. Furthermore, if you are an existing client at the bank, some banks will allow a 10% deposit for a pre-approval. The non-bank lenders, may only require a 10%-15% deposit.

Of course, many people do not have the 20% deposit to buy a house in NZ they need for their dream home. That is why they come to Platinum Mortgages to seek advice on how they can achieve that goal. As the first step, Platinum Mortgages Advisers will need to understand how much deposit you have. They will guide you on how much you can borrow with your deposit. Finally they work on plan with you to help you achieve the purchase price of your desired house.

By looking at the gap between your deposit and house purchase price, we can provide the best mortgage option for you or help you work towards your savings goal. Even if you don’t have enough deposit for your dream home, we can look at alternative options or ways to help you achieve your goal.

If this is your first home, or you have previously owned a house, you have been contributing regularly to KiwiSaver, and you intend to live in the property, then you may only need a 5% deposit.

What the lenders need to know

Most lenders want a guarantee that you will be able to pay off your loan once the contract is signed and the house is yours. They do this by:

  • Looking at your income: your financial transactions, savings, credit lines, and how responsible you have been with previous rent or mortgage payments.
  • How much deposit you currently have: your savings, gifting from parents or relatives, KiwiSaver, and First Home Grants.

Contact Platinum Mortgages to get a better understanding of what information you need to provide for your mortgage application. The team are here to steer you in the right direction, and they will be honest with feedback or suggestions.

Make sure you can afford your repayments

Especially for a first-time buyer, the most important thing to consider is whether you can afford your mortgage repayments. Mortgage repayments means the amount you need to repay after deducting your deposit from the property purchase amount. Every lender will have different interest rates. Therefore, use our Mortgage Repayment Calculator to work out your monthly, fortnightly, or weekly mortgage repayments.

At Platinum Mortgages, the Financial Advisers will also work together with you to put a budget plan in place before you start looking for a property. This way you have a plan to get to the required deposit to buy a house in NZ. You can also prove to the lender that you have sufficient income to repay your mortgage after deducting the expenses.

Taking the Final Decision

Talk to Platinum Mortgages and obtain expert advice before making any final decisions. They will provide you with the best advice for your particular situation. Considerations should include the deposit amount, mortgage term, interest rates, loan structures, affordability and sustainability, planning for a rainy day and exit plans etc.