The vast majority of all property transactions in New Zealand are for residential homes, but a small percentage of the transactions are for commercial properties, and because of the nature of the transactions the value of this business is very high. There are a few high net worth individuals who are very visible in this market, and some of them may enter into the biggest deals in high rise properties. The vast majority of the commercial transactions are at the lower end of the market and they will be to property investors who are comfortable owning commercial properties for rental.

The property investors can the individuals or groups or consortiums, and they generally will own a lot more than one commercial property. A very important component in the market is the financing, and specialist mortgage brokers are required to make this happen. The reason for this is that the value of the commercial property  is linked very closely to the rents that can be charged for the property, to the clients they have signed up to lease the property and the long term viability of those clients as tenants.

This is a completely different model than for residential housing, where the value of the property is fairly easy to determine simply by the quality of the property and it’s specific location. For rental properties it is important that the rent is considered by the mortgage brokers in Wanganui when applying for a loan, but in general the most important aspects are the capability of the owner in making the mortgage repayments, and the market value of the property and it’s ease of sale if the  owner is unable to make the payments.

Mortgage brokers in Wairarapa serving the commercial market must have enough business experience to be able to assess for themselves the quality of the tenants that occupy the building, or if it is a new commercial building then they must be able to assess the quality of the tenants that will likely occupy the building. For owners that have already signed their tenants to long term leases, then the job of getting finance is fairly straightforward for the mortgage brokers, and they are able to make their recommendation to the bank with a high degree of confidence that the risks well and truly meet the banks requirements.

Where tenants have not yet signed up, the broker needs to be able to assess the probability that good tenants will  indeed sign up, and the broker will need to be able to assess the quality of tenants that are likely given the location and style of the new commercial property. They will often need to personally assess for themselves the quality of likely  tenants, and they will need to be able to understand the tenants own business models in order to understand the risk presented to the building’s owner of the tenants not meeting lease payments.

The dramatic increase in house prices in the main centres in New Zealand has caused a reaction in government circles whereby all residential borrowers of mortgages need to provide a 20% deposit. This has indeed had a dampening effect on the house market, as has the 40% deposit requirement all property investors. Why not take a look at the first-time homebuyer mistakes to avoid and make sure you don’t do them.

However this has had a bad effect on first time buyers who are simply unable to accumulate the 20% deposit. The government have provided a solution in the form of the welcome home package which banks can offer and which is under written by the housing department. This package only requires 18% deposit for the mortgage, but the mortgages limited to around $500,000, and those qualifying for the mortgage must have a combined income less than $130,000 for a couple or $85,000 for an individual.

Nevertheless a large number of first time buyers qualify under these rules, but in many cases they need good mortgage brokers in Lower Hutt to also help them qualify for the bank loan. All banks are very strict about the quality of client they take onboard for a mortgage, and they will want a good sound credit check plus they want to know that the client is a good stable job and also has a good savings history.

Good mortgage brokers Upper Hutt will be able to see quickly whether a client is going to be a shoe in for a mortgage with a main Bank, or whether the client is going to need some assistance in order to present themselves better. If the mortgage broker can see that the client is going to be easy to serve, then they will obviously be really happy and can make things happen very quickly for the client. If the mortgage broker realises that there is a potential problem, then if they are smart they will go out of their way to help the client get around the problem, because in the end if the broker can help a client qualify for a mortgage then the broker gets paid.

A good broker will be able to offer sound financial advice to the first time buyer, and this will be based around what level of debt is affordable, and what level of debt is attainable if the clients were to really put their mind to it. A particular problem for first time buyers as if the main owner at self-employed, as Banks generally do not like self employed people.



This is unfortunate, but a good mortgage broker will help the couple build a savings and employment record that will work with a bank, and this might simply mean that the non working partner gets a temporary job for a few months. A self-employed person could be in an excellent situation in regard to paying down a mortgage, but if the bank doesn’t want to learn to them then they have a real problem.