Mortgages

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11 years 10 months ago #31390 by cheeseboard
Mortgages was created by cheeseboard
Hi was just wondering if anyone knows where we can get a mortgage as normal banks dont want to know us. We bought our lifestyle block as bare land (cash) and moved a house on (cash) we then fenced, built animal shelters etc (cash) we have now run out of cash [:0] and need another 30k to finish things off. okay we have not worked in almost a year since we left sharemilking sorry should say have not had an income as we have worked hard lol but as the property is not generating much of an income at the moment we cant get any finance even though we dont have any month expenses except the phone. Banks work on a minumum living expense of $1,400 our monthly expenses are way less - they dont understand the concept of solar power, growing what you eat ect. So we looking for somebody who will take that into consideration. Does anyone know we we can approach.

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11 years 10 months ago #421712 by GrantK
Replied by GrantK on topic Mortgages
The banks will be looking at your lack of income, and wondering how on earth you could ever manage to pay the loan off. I know only too well how much of a money pit a LSB can be, and anyone who thinks they can ever make anything significant out of it is either dreaming, or extremely lucky.

If you are confident in your ability to pay back the $30k, why don't you put away what you can afford each month in a savings account, and watch it grow. Then when you have saved up the $30k, you will know that you really were able to come up with that amount of money. Conversely, if the balance of the account never reaches $30k, you will know that it was a forlorn hope to begin with.

I am a great believer in using my own money to buy things, rather than other people's money. Borrowing money makes other people rich and you poor. It never hurt anybody to wait until they have saved up the money before spending it.

Live weather data and High/Low records for our farm at: www.keymer.name/weather

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11 years 10 months ago #421716 by RhodeRed
Replied by RhodeRed on topic Mortgages
I know you are wanting advice on securing the loan you are after from a bank.

I'd really suggest you have a look at how bank loans work, what are you really being loaned (if anything).
"Fractional reserve banking" and "Central Reserve Banking"
Then see if you can stomach the process with full knowledge that they lend you something at interest, that they create from nothing.

'scuse me poking my nose in if you were already aware of this.

GrantK's advice whilst not being what you want to hear is not foolish.

You certainly have my admiration for having done what you have using cash up front and not involving banks. Kudos!

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11 years 10 months ago #421718 by muri
Replied by muri on topic Mortgages
Have you heard of Prometheus? They take a slightly different approach, and you may find you can approach them, I think they have recently moved to wellington.
Banks probably dont want to know people with no income, thats not their thinking

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11 years 10 months ago #421719 by DiDi
Replied by DiDi on topic Mortgages
And after 30 years of LSB farming all I can say is "well said Grant". LSB may be self sufficient with a lot of hard work but there is another definition of LSB and that is Life Sentence Block... and that can include financial. In my experience it does!

I am trying to believe in your dream but there would be few LSB's that generate an income to cover their mortgage/loan and that is what the bank is having a problem with. I get it! You have to ask the question - how - without income do you intend to pay back the loan?

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11 years 10 months ago #421726 by cheeseboard
Replied by cheeseboard on topic Mortgages
Thanks for all your comments. Muri I will look into Prometheus. DiDi I really do realise that if we did not have an income we would be stupid to even try and get a mortgage but the point I was trying to make is that we have a small income sure but we have next to no expenses and can quite comfortably pay back a small mortgage but banks do not take that into consideration.

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11 years 10 months ago #421737 by ronnie
Replied by ronnie on topic Mortgages
Then go to a mortgage broker (or 2), they are everywhere, and see if one of the finance companies will lend it to you. The interest rates will be a lot higher than a bank, but you may just get lucky.

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11 years 10 months ago #421849 by Blueberry
Replied by Blueberry on topic Mortgages
Hi Cheeseboard
we were (are :D ) in the same position - the only bank that would lend us the money to build a commercial kitchen on our property so we could make more money of what we grow was TSB. Their's was the only bank manager willing to take into account what our monthly expenses really are, and lend us on that. After all, they still get the security of a really good property against it, so they can't loose.
We too, have too little regular income for other banks. I work part time - hm, scratch that: I work full time, and I have a part time income:rolleyes: hubby looks after home and block.
Having said all that, last time i spoke with the bank manager, he said the loan department people had done some sort of audit on the traffic on our account (probably still worried about our ability to pay back[;)]), and they were impressed with the traffic, but could not work out what we were living on:rolleyes:

[;)] Blueberry
treading lightly on mother earth

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11 years 10 months ago #421866 by cheeseboard
Replied by cheeseboard on topic Mortgages
Hi Blueberry,
I thought there would be others out there in the same boat :D . Thanks for the info I have approached a mortgage broker but he has indicated the interest would be higher so I will contact TSB aswell more options the better for us. Anyway it is as you say as the amount we want to borrow is so small compared the the actual value of the property you would think they would say yes as they cant really loose can they?

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11 years 10 months ago #421875 by Blueberry
Replied by Blueberry on topic Mortgages
yeah, you have to wonder: here we are, with a debt less than 10% of the property value, and most banks don't wanna know anything about us, but they go right ahead and lend money up to 90% of the property value to people who are in paid employment and could loose their job antime? - go figure

[;)] Blueberry
treading lightly on mother earth

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11 years 10 months ago #421899 by DiDi
Replied by DiDi on topic Mortgages
I would assume they can get Mortgage insurance. No idea who qualifies i.e. being paid by others or not.

Again now idea how this works but there are credit facilities that extend your money. Perhaps you need a credit card from someone like Kiwibank ?low interest rate and do it that way if you are sure you can cover the interest each month and so not incur excess fees.

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11 years 10 months ago #421913 by Ohailander
Replied by Ohailander on topic Mortgages

Blueberry;419248 wrote: yeah, you have to wonder: here we are, with a debt less than 10% of the property value, and most banks don't wanna know anything about us, but they go right ahead and lend money up to 90% of the property value to people who are in paid employment and could loose their job antime? - go figure

They make a lot more money on the interest if you borrow more over a longer time period. So are often more ameniable to lend greater amount.
I have been pushed quite hard (by the bank) in the past to borrow more than I really wanted too.

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