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October 1, 2013 was a bad day to be a first home buyer.
That was the day the Reserve Bank announced its new Loan To Value lending rules – any lending with less than a 20% deposit was deemed low equity, restricting banks’ freedom to lend.
All of this was terrifying for the typical Kiwi whose only dream is to purchase a house.
It turns out the concept that banks were simply not going to lend to anyone was overblown.
Franklin mortgage adviser Glyn Slade says the Reserve Bank simply wanted to cool market property prices and protect the New Zealand Banking system.
Most people dream of owning their own home. I help them achieve that dream.
His service as an Authorised Financial Adviser actually means he can negotiate mortgages based on 10% or even 5% deposits, as was the norm before October.
“The fear was that if we have too many people on 95% home loans and we have another credit crunch, people might not be able to afford repayments,” he says.
“Then we have foreclosures, mortgagee sales, then it’s a spiralling problem, forced sales driving property prices down and exposing our financial system to losses.
“Banks might say yes to a mortgage, but an applicant still doesn’t know if they’re getting a good deal. And they’re not really getting advice. In a lot of banks, staff are either ill-equipped, untrained or unqualified.”
NZ survived the global financial crisis, but banks are continuing to act impersonally. That’s where Glyn comes in.
Glyn helps Franklin people
Glyn has 20 lenders to help people through the daunting application process and navigate cautious lending policies.
The idea that everyone needs a 20% deposit is scary. It’s also untrue.
“That’s a common misconception. You can’t put a number on it: it’s a question of has an applicant got a genuine deposit? I can still get 90%-funded deposits – I got a 92% just two weeks ago. For the right people, it’s no problem.
“Buying a home with a home loan is the most money a person will ever spend,” says Glyn.
He makes the ordeal comfortable and reduces the stress involved, with an initial 90-minute meeting which includes fact-finding, organising required information, and then discussion to get an application up to a reasonable level.
“I hold a client’s hand and give guidance all the way through to settlement and beyond, to review and sometimes revise arrangements. I’ll still be here looking out for them when the fixed rate term has matured. That’s a free service.”
Glyn can negotiate loans from as little as $100,000 up to $2 million or more. Building projects at Pokeno, Karaka and Paerata keep Glyn busy.
Having lived and worked in Franklin and South Auckland since 1988, he’s become part of Mortgage Express and is often called upon by realtors such as Harcourts to help first home buyers.
It’s not about some cosy back-scratching arrangement with banks.
“Recently I’ve advised some people not to borrow the amount a bank had suggested. It’s actually about making sure someone’s budget will work.
“I know what each lending institution really requires. What I do is take the legwork out of it for clients, and I can go for competitive deals,” says Glyn.
“Most people dream of owning their own home. I help them achieve that dream.”
In seven simple words: “I work for you, not the bank.”
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