First Home Buyer s Guide

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1 First Home Buyer s Guide Helping you achieve the dream of home ownership

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3 Index Buying the Kiwi dream...2 Why use a Mortgage Expert?...3 Step 1 Calculate your affordability...4 Step 2 Discover your KiwiSaver and subsidy entitlements...6 Step 3 Apply for a mortgage...8 Step 4 Complete the checklist of items required...9 Step 5 Calculate the finance costs...10 Step 6 Understand the product types and options available...11 Step 7 Understanding specialist mortgages...13 Step 8 Decide on location and property type...14 Step 9 Complete our property checklist...16 Step 10 Identify the annual cost of owning the home...17 Step 11 Engage a solicitor...18 Step 12 Begin the purchase process...20 Step 13 Calculate your purchase costs...21 Step 14 Arrange insurance...22 Repayment tables...24 The Home Loan Shop 1

4 Buying the Kiwi dream It s not a house you are buying it is a home. Most Kiwis strive to own their own home. In this guide we try to take the mystery out of turning your dream into a reality. There is so much to think about when you take the big step into home ownership. Am I paying too much? Is this a good area and does it have all the infrastructure we need? Of course, above all, will we be happy here? Your mortgage is no different. Chances are it is going to be with you for a while, so you need to ensure you receive expert advice in choosing the right solution for you. At The Home Loan Shop we tailor the right loan(s) for your circumstances as we do not take a one size fits all approach. Your Home Loan Shop Expert is a self-employed business owner. He or she is here for the life of your loan to assist you with not only ensuring the purchase happens efficiently, but to help in effectively managing your debt for the life of any loan(s) you require. You also have the comfort of knowing that we work for you, not one of the banks. 2 The Home Loan Shop

5 Why use a Mortgage Expert? At The Home Loan Shop we will save you time and take the hassle out of what can be a very stressful process for many people. Let us worry about the right solution and getting it arranged for you. With access to 12 lenders offering over 100 different products, we have the solution to every different situation. If we can t get your home loan approved, you can t be approved*. We will negotiate with the lenders to ensure you get the best overall package, including waiving of application fees, discounts off your interest rate and often contributions from the lender towards your professional fees. Our industry is regulated by the Financial Markets Authority (FMA). All our Home Loan Shop Experts are Registered Financial Advisors (RFA s). At The Home Loan Shop we will not only take the stress out of arranging your home loan, we will be your personal mortgage manager for the life of your financial needs. A mortgage is a relationship not a transaction. We will make sure it is a successful long term relationship. Let us help you achieve the dream of home ownership. *At a fair rate of interest. The Home Loan Shop 3

6 Step 1 Calculate your affordability With so much to think about it is easy to get ahead of yourself, thinking about location and property type. DON T. The first place to start is your affordability. You are restricted by two factors: the amount you have to contribute toward your purchase (the deposit) and your ability to meet the repayments on an ON-GOING basis. Your deposit Your deposit will be a big factor. Generally banks and lenders are looking for a minimum of 5-20% as a deposit. The rules around the origin of your deposit can depend on how much deposit you have available. For more information on home loans over 80%, please see page The Home Loan Shop

7 Your repayments Your repayment ability is critical. This is an area we can help guide you through to ensure you are able to meet the repayments. You should focus on whether you feel comfortable in your ability to meet the loan repayments on an ON-GOING basis. Do a household budget as it would be if you take out the size of mortgage you want. Remember to take into account all living expenses, including rates, insurances (both household and personal), maintenance, entertainment, potential emergencies and holidays. These are all real items that will occur and you need to ensure that when they do you can still meet your mortgage repayments. While every lender is different in establishing their affordability criteria, as a rough guide you can apply the one-third rule. This is where you take one third of your gross monthly income (before tax). This amount should not exceed your total monthly mortgage and loan payments (including any personal loan or credit card payments). The amount you can borrow and hence spend on a property will dictate the property style and location. Our advice is always to obtain pre-approval of mortgage finance before you start house shopping. That way you know exactly how much you can borrow and the limit of your purchasing power. The Home Loan Shop 5

8 Step 2 Discover your KiwiSaver and subsidy entitlements KiwiSaver home ownership features KiwiSaver is a voluntary work-based savings initiative to help you with your long-term saving for retirement. It has a range of membership benefits including help to buy your first home. KiwiSaver has two features to help you buy your first home. The KiwiSaver first-home savings withdrawal, and the KiwiSaver firsthome deposit subsidy. Both these features can also be used to help buy land to build a house on. Members of complying funds and exempt employer schemes may also be eligible. KiwiSaver first-home savings withdrawal If you have been a member of KiwiSaver for at least three years, you may be able to withdrawal all, or part, of your savings to put towards buying your first home. Government contributions including the $1,000 kick-start when you first join are not paid out in the first-home withdrawal. If you are a first-home buyer please contact your KiwiSaver provider or complying fund provider to apply. If you have owned a home before but are in a similar financial position to a first-home buyer you may still be eligible for the firsthome savings withdrawal. Housing New Zealand will determine this before you apply to your scheme provider. For more information on the first-home savings withdrawal visit 6 The Home Loan Shop

9 KiwiSaver first-home deposit subsidy The deposit subsidy is a payment of $1,000 for each year of contributing to KiwiSaver up to a maximum of $5,000. You need to have contributed to KiwiSaver for a minimum of three years to be eligible: 3 years of contributing = $3,000 (the minimum you can get) 4 years of contributing = $4,000 5 years of contributing = $5,000 (the maximum you can get) If you live in the house you have bought for six months, the subsidy is yours to keep. If you move out before six months, you will be required to pay the subsidy back. There are certain eligibility criteria to meet including household income, your minimum contributions to KiwiSaver and the price of the house you wish to buy. For more information on the deposit subsidy visit The Home Loan Shop 7

10 Step 3 Apply for a Mortgage If you make an offer on a house before you arrange your finance, always make sure you put a clause in the offer subject to satisfactory finance approval. Generally you should allow 5 10 days for this clause to be satisfied. When applying for a mortgage there are a number of steps that will occur. The table below will help take the mystery out of the finance process. Event Application for pre-approval completed with Mortgage Advisor Pre-approval received from lender Offer made on property Conditions of approval met Is a registered valuation report required? If so, Advisor to arrange All conditions to lender for issuance of unconditional letter of offer. Sum insured house insurance quoted on a no exclusions basis. Meet with our Home Loan Shop Risk Advisor to review life and income/mortgage insurance protection. Letter of offer signed and returned to Mortgage Advisor Letter of offer sent back to Lender and documents to Solicitor or bank branch for signing Mortgage documents produced to client s Solicitor for signing Borrower executes mortgage documents Settlement occurs and you move into house Home Loan Shop Expert to touch base with client to ensure settlement process went well and new bank relationship is on track (professional contribution credited to account etc) Client management Timing As required Generally hours from submission As required Provide to Advisor ASAP Generally takes up to 4 days from ordering From receipt of conditions from Borrower Please call The Home Loan Shop to get an accurate estimate of these expenses. Provide to Advisor ASAP Advisor to send to lender immediately Within 72 hours of letter of offer being sent back to Lender As booked with Solicitor As per Sale and Purchase Agreement Within a week of settlement Advisor will be in touch days before re-fix expiry 8 The Home Loan Shop

11 Step 4 Complete the checklist of items required When you apply for pre-approval there are some standard items you will be required to provide that will assist in the quick and efficient processing of your mortgage application. Please prepare for your mortgage interview by collating the information below and bringing it with you to your first appointment with your Home Loan Shop Expert. Confirmation of income (three payslips or, letter from employer, or copies of the last two years financial accounts if self-employed). A signed copy of the Sale and Purchase Agreement signed by both parties (if an agreement has been entered into). Proof of deposit/equity (copies of three months bank statements, share certificates, letter of gifted deposit, KiwiSaver). Copies of the last three months transactional bank statements (if looking for finance with an institution where you currently have no accounts). Internet transactional statements are fine as long as they have your name, account number, and running balance (not CSV files). Copies of the last six months mortgage statements (if looking to refinance from another financial institution). Internet transactional statements are fine, as long as they have your name, account number and running balance (not CSV files). Identification (copy of passport or drivers licence if looking to arrange finance with an institution where you currently have no accounts). Copy of the Trust Deed (fully signed) if borrowing or security is to be in the name of a Trust. The Home Loan Shop 9

12 Step 5 Calculate the finance costs When applying for a mortgage there are some costs that will/may be associated with arranging your mortgage. Loan application fee Registered valuation fee Lenders Mortgage Insurance* (low equity fee or low equity margin) Up to $500 (however, by applying through The Home Loan Shop this will likely be waived) If a valuation is required, this will cost approximately $550 - $750 Cost depends on Loan to Value Ratio and amount of loan. Talk to your Home Loan Shop Expert *Please be aware that if Lenders Mortgage Insurance (LMI) is required, it does not provide the borrower with any form of insurance protection. It is charged by the lender to allow them to lend you a higher than preferred Loan to Value Ratio (LVR) on a property (the one-off cost or margin on interest rate is passed on to you - the borrower). This is generally charged by the bank when there is less than a 20% deposit from the borrower (please see our over 80% home loan section on page 13). Ask your Home Loan Shop Expert for a more in-depth explanation and indication of the potential cost. 10 The Home Loan Shop

13 Step 6 Understand the product types and options available Principal and interest As the name suggests, you are repaying both the principal borrowed and the interest charged. This is the most common type of loan taken out for an owner occupied mortgage. The term of the loan can be anywhere up to 30 years with payments able to be made weekly, fortnightly, or monthly to suit your circumstances. As a general rule, try to pay as much as you can in the early years of your loan (over and above your standard amount) as it will save you thousands in interest and reduce the overall term of your loan substantially! Revolving Credit/Flexi loans This type of loan is worth exploring. They allow you to use your mortgage as a bank account - all your income is direct credited into the mortgage. You use a credit card (with up to 55 days interest free) to pay all household expenses and then repay that credit card at the end of each month with a direct credit from your mortgage account to clear the credit card in full (thus no interest is charged on your credit card). Your salary has reduced your mortgage all month and as a result has reduced the interest cost. Ask your Mortgage Expert for further details. While this may sound like a good option, it tends to only work well for people with surplus monthly income and spending discipline. Interest only As the name suggests, you are only paying the interest being charged. While the repayments will be less than a Principal and Interest loan, this is generally not recommended for owner occupied purchasers as you will still owe the original amount of the loan borrowed at the end of the term. Continued over page... The Home Loan Shop 11

14 Fixed interest rates You can choose to fix the interest rate on your mortgage from anywhere between six months and five years. The upside is that repayments cannot go up on you during the fixed interest rate period. The downside is that if interest rates go down and you have fixed your rate for a long period of time, you are stuck paying the higher rate, while market variable rates are available at a lower cost. So, just be aware that there are some risks associated with fixing your rate for too long. Variable interest rates This means that your interest rate can go up or down as the economy changes. The downside is that rates can go upwards increasing your repayments. The upside is the reverse - if interest rates fall so do your repayments. If on a variable rate, you can ask to change to a fixed rate at any time with little to no cost. Combo loans You can also ask to have some of your mortgage on a fixed interest rate and some on a variable rate which can give you the best of both worlds. Make sure you can pay extra payments over and above the standard monthly amount required and can redraw those extra payments made if you need to. Fees Take into account all fees associated with the loan when considering the best option, not just the interest rate. Look at the establishment fee, valuation fee, account keeping fee and discharge fee. Your Mortgage Expert will tailor your home loan specifically for your needs. 12 The Home Loan Shop

15 Step 7 Understanding specialist mortgages 80% and over home loans As the mortgage market has matured and grown it has become possible for some consumers to actually raise 80-95% of the purchase price of a house as a mortgage. Qualifying: To qualify for a 80% home loan the credit criteria to be met is more stringent than if you are putting a larger deposit down on the property. It is preferred that applicants are very stable in their work and they must have a squeaky clean credit check. Additionally, it is expected the borrowers will have minimal other debt. Other specialist mortgages In today s diverse and expansive mortgage market there are very few people we cannot assist. We have access to many lenders who can assist people that may be outside the square credit box of a traditional bank. This specialist lending is more expensive than trading banks as the risk undertaken by the specialist lender is higher. If you fall into the categories listed below, don t worry we may still have a solution for you: You are self-employed but don t have two years worth of financial statements. You have an irregular employment pattern - part-time, contract or seasonal. You have adverse entries (black marks) on your credit file. You have recently arrived in New Zealand. You have credit card, personal loans or other expensive debt you want to consolidate. The Home Loan Shop 13

16 Step 8 Decide on location and property type Once you have established how much you can borrow and you have a formal pre-approval in place you can now start shopping (the fun part). Shop, shop, shop, and then shop some more! You can t look around enough when you are buying a home. Make sure a property has the infrastructure around it you want/need, such as schools, transport, medical, shopping, social and sports clubs. What is the weather like in the area? Does the house get good sun late in the day or early; is it wind blown? TRY and take the emotion out of buying the house. Oh I love it. We just have to buy this one! This is often hard, but believe us, it isn t the only house you will find! EMOTION can be your enemy when buying a home as it can cloud your judgement. And ask the questions! Why is the current owner selling - are the neighbours noisy students or have they just grown too big for the house? How much did this house sell for previously and what have similar properties in the area been selling for? Is the Realty Agent or the owner aware of any issues in regards to this property or surrounding properties that could affect your decision? 14 The Home Loan Shop

17 Rateable valuation Is the Rateable Valuation (RV) relevant? Often this is not the case as the RV is only a snap shot at a set point in time. The RV is the figure that drives the rates payable on the house. It does not mean it is still worth that figure. You can also obtain some useful information for a small cost by going to the Quotable Valuations website Land Information Memoranda Often recent improvements to a property look great but make sure you check out to see if the improvements received council consent. You can do this by requesting your Solicitor to undertake a Land Information Memorandum report (LIM). A LIM report shows Consents and Codes of Compliance, rates owing, any problems with drainage, flooding or erosion. You can also obtain a short property report from your local council at minimal cost. Councils in the Wellington region are: Wellington / Porirua / Lower Hutt / Upper Hutt / Kapiti Certificate of Title You should also get the Certificate of Title (CT) checked by your solicitor. You need to understand the different ownership types that exist including freehold, cross lease, unit title, company title or leasehold. The CT will also highlight any covenants (restrictions) or easements (rights) on the property. Our advice is always consult a Solicitor in matters of title. The Home Loan Shop 15

18 Step 9 Complete our property checklist Use the list below when looking at houses. Add any extra conditions you may have. When does the house get the sun? Do all the doors and windows open? Is there any damage? Is the roof in good condition? Are the gutters and downpipes in good condition? What repairs are needed? Are the kitchen and bathroom in good condition? These rooms are expensive to fix if work is needed. Do all the taps work? Does the shower work? Does the toilet flush well? Are there enough power points? Is there enough storage? Does the house smell damp? Has it got ceiling, wall or under floor insulation or heating? Are the plumbing and electrics in good condition? Depending on the age of the house, you may need to get an insurance certificate to confirm the wiring is okay. What features (usually described as chattels) are included in the sale price? For example, appliances (such as a dishwasher), telephones, TV/digital dishes, carpets, curtains/drapes, shelving. Is there dampness under the house? Is it noisy, near industrial activity or aeroplanes? Above all, make sure you get a thorough building report on the property. For a small cost this will give you complete confidence in one of the biggest financial decisions you will make. 16 The Home Loan Shop

19 Step 10 Identify the annual cost of owning the home There are annual costs to owning a home as well as the initial start-up costs. Rates: Are paid to your council for services like rubbish collection. The amount varies between councils. Remember, you ll need to pay some of the rates on settlement day. House and contents insurance: You need to insure your new home from the day you take ownership, along with the contents. This means that if something happens to your home and it can be repaired, the insurance company can restore it to as-new condition regardless of the age of the house. House and contents insurance automatically includes earthquake cover. You ll need to pay some or all of the insurance on the day you move into your new home. Look around for a good deal you may be able to get a package deal with house, contents and car insurance. Talk to your Home Loan Shop expert about that. Body Corporate levy: If you re buying a unit or an apartment in a block or complex you may need to pay a Body Corporate Levy. This is your contribution to the costs of maintaining the common areas. Ask the real estate agent how much this will be. You ll also need to comply with Body Corporate rules and regulations. Repairs and maintenance: Keeping up to date with repairs and maintenance helps keep costs down and improves the value of your home. Make sure you put money aside for repairs and maintenance each year. In summary, ongoing annual costs could be: Rates House insurance Contents Body corporate levy Allow about $2,500 a year. For a three bedroom house with floor area of about 120 square metres and a single garage, house insurance would cost about $1,000 a year. $60,000 worth of insurance cover would cost about $600 a year. Allow for $3,600 a year (but this is very dependent on the apartment complex). The Home Loan Shop 17

20 Step 11 Engage a solicitor Your Solicitor performs an important and critical part of the process when purchasing a house. Too many people proceed with a house purchase before they have sought the advice of their Solicitor and this can be a costly mistake. Ownership structures Your Solicitor can give you advice on ownership structures - such as whether you could benefit from a family trust or whether you should purchase as joint tenants (most common) or tenants in common. It is advisable to understand the options and establish your ownership structure before you go house shopping. Searches If you want to get a LIM report (see page 15) on the property you are looking to purchase, your Solicitor can assist with this. Your Solicitor will also arrange any Certificate of Title searches. Contractual obligations When you make an offer on a property your Solicitor can check the purchase contract to ensure it is satisfactory. They will also advice what (if any) conditions you should include in your contract as well as explaining any conditions included by the vendor. Your Home Loan Shop Expert and your Solicitor can help to ensure prompt satisfaction of any conditions. 18 The Home Loan Shop

21 Mortgage documents / KiwiSaver withdrawal Your Solicitor will also receive mortgage documents from the lender which you will then sign and execute. He/she will advise you on the full terms and conditions of the mortgage documents. Your Solicitor will also advise you on what to bring to this meeting. It will include, sum insured insurance on the new property (with no exclusions) and photo ID for each borrower. Your Solicitor also liaises with your KiwiSaver provider for the release of your first-home savings withdrawal (this is credited to the lawyer s trust account on settlement day). Settlement Finally, your Solicitor is the one who will manage the settlement process on the purchase. They arrange for full payment of the purchase price, co-ordinating your deposit and the loan from the bank and getting payment to the vendor s Solicitor. He/she will also lodge the change of ownership and registration of mortgage with the Land Information NZ. You will receive a full settlement statement showing you what money went where. If you do not have a Solicitor who can act for you, ask your Home Loan Shop Expert for a referral to a good one. We have relationships across New Zealand with quality Solicitors who will look after you. The Home Loan Shop 19

22 Step 12 Begin the purchase process Remember the small point we made before? Always get your finance pre-approved. This gives you a specific price range to look within. Pre-approval generally lasts for days, costs nothing and can be easily renewed. Most offers are conditional. This means you are making your offer subject to one or more conditions being met. Conditions may include: finance being approved (we can get you in a position where this is not required) a satisfactory independent valuation a satisfactory title search a satisfactory building inspection a satisfactory Land Information Memorandum (LIM) You can either place conditions in your offer or complete the above due diligence before presenting your offer. The less conditions, the more appealing your offer will be to the seller. It s also important to consider the different sales methods used by real estate agents: Offer and negotiation The most common is offer and negotiation which includes Price On Application (POA) and Buyer Enquiry Over (BEO). A written offer is made on a sale and purchase agreement (normally through a Real Estate Agent). The buyer accepts your offer or amends your offer and sends it back to you. As the purchaser, you will either agree or counter the offer. This process continues until you agree on a price (or don t). Auction Usually there is a reserve price at auction which if not obtained finds the house passed in (it doesn t sell). Be careful with auctions. Offers 20 The Home Loan Shop

23 are unconditional so do your homework first. A deposit (generally 10%) is required to be paid on the fall of the hammer. Tender / deadline sale In a tender process you place your best offer in writing to the vendor who receives all offers on a set date and then chooses the most favourable. The vendor may not choose any tender made and pass the property in or negotiate with the highest offer. Step 13 Calculate your purchase costs Remember, unconditional is unconditional, and once unconditional you are legally bound to buy the property. Make sure you complete your due diligence thoroughly. You need to be aware of all costs associated with buying a property. Take note of the following categories and ensure you understand the costs associated with the property you are looking to purchase. Please remember the table below is a rough guide only and you should obtain legal advice in relation to the property you are looking to buy. Potential purchase costs Estimates A re-apportionment of rates paid on the property $ House insurance including contents Risk insurance: life and income/mortgage protection $ per month POA with HLS Expert Legal costs $ LIM and/or Certificate of Title searches $ Building report $ Registered valuation (if required) $ Low Equity Premium (LEP) for over 80% lending POA with HLS Expert The Home Loan Shop 21

24 Step 14 Arrange insurance An area you need to be aware of, and where many people let themselves down, is Insurance. When you buy a family home and take out a mortgage to fund the purchase, you need to ensure your asset is going to be protected if something happens to you. House insurance: Insuring the house on a sum insured basis (with no exclusions) is essential. The bank or lender will not advance the loan if the house is not adequately insured. Your Solicitor requires a Certificate of Currency (with the lender noted as an interested party) to supply to the bank on settlement day. This is provided by you or your insurer. Contents insurance: While not essential, it is strongly recommended that you also insure the contents of your family home. Imagine the devastation if fire burned your house and all of its contents to the ground and you did not have your contents insured. How would you pay to replace all of your items? Life insurance: It is strongly recommended by The Home Loan Shop. When you buy a home and take out a mortgage your whole risk profile changes dramatically. You need to ensure your life insurance is still sufficient to cover your family s needs if something happens to you. Trauma: This is also strongly recommended by the Home Loan Shop. Not only do you need to ensure your family is protected if you die, but what about if you face serious disability or illness through an accident or health issue such as cancer or a heart attack? 22 The Home Loan Shop

25 Income protection or mortgage repayment insurance: How are you going to make your mortgage payments if you become sick or lose your job? You need to make sure you can still pay for the roof over your family s head. We believe the question you should ask yourself is: How is my family going to cope with keeping our family home in place if I am gone or unable to earn income due to disability or for health reasons? Buying a home is a major step and one you want to make sure is properly protected in the event of misfortune. At The Home Loan Shop we have access to a full range of insurance solutions. We have a business pillar dedicated to insurance with experienced business partners who will provide you with the right advice. Don t ignore the insurance issue. Address it! The Home Loan Shop 23

26 Repayment tables On the following pages you will find comprehensive principal and interest repayment charts for those of you who want to consider principal and interest repayments, or you can use the repayment calculator on our website at The following charts are worked out over a 30 year term and show lending amounts from $100,000 through to $500,000 (in $20,000 increments). Interest rates range from 10% through to 5% (in 0.50% increments). If you are looking to make interest only repayments, the formula for you to calculate the monthly interest repayment is very easy. Simply multiply the loan amount by the interest rate and divide by 12 for the monthly repayment amount. Interest only monthly repayment = Loan amount x interest rate 12 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $203 $405 $878 $10,531 $315,926 $215,926 $120,000 $243 $486 $1,053 $12,637 $379,111 $259,111 $140,000 $284 $567 $1,229 $14,743 $442,296 $302,296 $160,000 $324 $648 $1,404 $16,849 $505,481 $345,481 $180,000 $365 $729 $1,580 $18,956 $568,666 $388,666 $200,000 $405 $810 $1,755 $21,062 $631,852 $431,852 $220,000 $446 $891 $1,931 $23,168 $695,037 $475,037 $240,000 $486 $972 $2,106 $25,274 $758,222 $518,222 $260,000 $527 $1,053 $2,282 $27,380 $821,407 $561,407 $280,000 $567 $1,134 $2,457 $29,486 $884,592 $604,592 $300,000 $608 $1,215 $2,633 $31,593 $947,777 $647,777 $320,000 $648 $1,296 $2,808 $33,699 $1,010,962 $690,962 $340,000 $689 $1,377 $2,984 $35,805 $1,074,148 $734,148 $360,000 $729 $1,458 $3,159 $37,911 $1,137,333 $777,333 $380,000 $770 $1,539 $3,335 $40,017 $1,200,518 $820,518 $400,000 $810 $1,620 $3,510 $42,123 $1,263,703 $863,703 $420,000 $851 $1,701 $3,686 $44,230 $1,326,888 $906,888 $440,000 $891 $1,782 $3,861 $46,336 $1,390,073 $950,073 $460,000 $932 $1,863 $4,037 $48,442 $1,453,259 $993,259 $480,000 $972 $1,944 $4,212 $50,548 $1,516,444 $1,036,444 $500,000 $1,013 $2,025 $4,388 $52,654 $1,579,629 $1,079,629 INTEREST RATE 10% 24 The Home Loan Shop

27 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $194 $388 $841 $10,090 $302,708 $202,708 $120,000 $233 $466 $1,109 $12,108 $363,249 $243,249 $140,000 $272 $543 $1,177 $14,126 $423,791 $283,791 $160,000 $310 $621 $1,345 $16,144 $484,332 $324,332 $180,000 $349 $699 $1,514 $18,162 $544,874 $364,874 $200,000 $388 $776 $1,682 $20,181 $605,415 $405,415 $220,000 $427 $854 $1,850 $22,199 $665,957 $445,957 $240,000 $466 $931 $2,018 $24,217 $726,498 $486,498 $260,000 $505 $1,009 $2,186 $26,235 $787,040 $527,040 $280,000 $543 $1,087 $2,354 $28,253 $847,581 $567,581 $300,000 $582 $1,164 $2,523 $30,271 $908,123 $608,123 $320,000 $621 $1,242 $2,691 $32,289 $968,664 $648,664 $340,000 $660 $1,319 $2,859 $34,307 $1,029,206 $689,206 $360,000 $699 $1,397 $3,027 $36,325 $1,089,747 $729,747 $380,000 $737 $1,475 $3,195 $38,343 $1,150,289 $770,289 $400,000 $776 $1,552 $3,363 $40,361 $1,210,830 $810,830 $420,000 $815 $1,630 $3,532 $42,379 $1,271,372 $851,372 $440,000 $854 $1,708 $3,700 $44,397 $1,331,913 $891,913 $460,000 $893 $1,785 $3,868 $46,415 $1,392,455 $932,455 $480,000 $931 $1,863 $4,036 $48,433 $1,452,996 $972,996 $500,000 $970 $1,940 $4,204 $50,451 $1,513,538 $1,013,538 INTEREST RATE 9.5% Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $186 $371 $805 $9,655 $289,664 $189,664 $120,000 $223 $446 $966 $11,587 $347,597 $227,597 $140,000 $260 $520 $1,126 $13,518 $405,530 $265,530 $160,000 $297 $594 $1,287 $15,449 $463,463 $303,463 $180,000 $334 $668 $1,448 $17,380 $521,395 $341,395 $200,000 $371 $743 $1,609 $19,311 $579,328 $379,328 $220,000 $409 $817 $1,770 $21,242 $637,261 $417,261 $240,000 $446 $891 $1,931 $23,173 $695,194 $455,194 $260,000 $483 $966 $2,092 $25,104 $753,127 $493,127 $280,000 $520 $1,040 $2,253 $27,035 $811,060 $531,060 $300,000 $557 $1,114 $2,414 $28,966 $868,992 $568,992 $320,000 $594 $1,188 $2,575 $30,898 $926,925 $606,925 $340,000 $631 $1,263 $2,736 $32,829 $984,858 $644,858 $360,000 $668 $1,337 $2,897 $34,760 $1,042,791 $682,791 $380,000 $706 $1,411 $3,058 $36,691 $1,100,724 $720,724 $400,000 $743 $1,485 $3,218 $38,622 $1,158,657 $758,657 $420,000 $780 $1,560 $3,379 $40,553 $1,216,589 $796,589 $440,000 $817 $1,634 $3,540 $42,484 $1,274,552 $834,522 $460,000 $854 $1,708 $3,701 $44,415 $1,332,455 $872,455 $480,000 $891 $1,783 $3,862 $46,346 $1,390,388 $910,388 $500,000 $928 $1,857 $4,023 $48,277 $1,448,321 $948,321 INTEREST RATE 9.0% The Home Loan Shop 25

28 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $177 $355 $769 $9,227 $276,809 $176,809 $120,000 $213 $426 $923 $11,072 $332,171 $212,171 $140,000 $248 $497 $1,076 $12,918 $387,532 $247,532 $160,000 $284 $568 $1,230 $14,763 $442,894 $282,894 $180,000 $319 $639 $1,384 $16,609 $498,256 $318,256 $200,000 $355 $710 $1,538 $18,454 $553,618 $353,618 $220,000 $390 $781 $1,692 $20,299 $608,979 $388,979 $240,000 $426 $852 $1,845 $22,145 $664,341 $424,341 $260,000 $461 $923 $1,999 $23,990 $719,703 $459,703 $280,000 $497 $994 $2,153 $25,835 $775,065 $495,065 $300,000 $532 $1,065 $2,307 $27,681 $830,427 $530,427 $320,000 $568 $1,136 $2,461 $29,526 $885,788 $565,788 $340,000 $603 $1,207 $2,614 $31,372 $941,150 $601,150 $360,000 $639 $1,278 $2,768 $33,217 $996,512 $636,512 $380,000 $674 $1,349 $2,922 $35,062 $1,051,874 $671,874 $400,000 $710 $1,420 $3,076 $36,908 $1,107,235 $707,235 $420,000 $745 $1,491 $3,229 $38,753 $1,162,597 $742,597 $440,000 $781 $1,561 $3,383 $40,599 $1,217,959 $777,959 $460,000 $816 $1,632 $3,537 $42,444 $1,273,321 $813,321 $480,000 $852 $1,703 $3,691 $44,289 $1,328,682 $848,682 $500,000 $887 $1,774 $3,845 $46,135 $1,384,044 $884,044 INTEREST RATE 8.5% Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $169 $339 $734 $8,805 $264,155 $164,155 $120,000 $203 $406 $881 $10,566 $316,986 $196,986 $140,000 $237 $474 $1,027 $12,327 $ $229,817 $160,000 $271 $542 $1,174 $14,088 $422,648 $262,648 $180,000 $305 $610 $1,321 $15,849 $475,479 $295,479 $200,000 $339 $677 $1,468 $17,610 $528,310 $328,310 $220,000 $373 $745 $1,614 $19,371 $581,142 $361,142 $240,000 $406 $813 $1,761 $21,132 $633,973 $393,973 $260,000 $440 $881 $1,908 $22,893 $686,804 $426,804 $280,000 $474 $948 $2,055 $24,654 $739,635 $459,635 $300,000 $508 $1,016 $2,201 $26,416 $792,466 $492,466 $320,000 $542 $1,084 $2,348 $28,177 $845,297 $525,297 $340,000 $576 $1,151 $2,495 $29,938 $898,128 $558,128 $360,000 $610 $1,219 $2,642 $31,699 $950,959 $590,959 $380,000 $643 $1,287 $2,788 $33,460 $1,003,790 $623,790 $400,000 $677 $1,355 $2,935 $35,221 $1,056,621 $656,621 $420,000 $711 $1,422 $3,082 $36,982 $1,109,452 $689,452 $440,000 $745 $1,490 $3,229 $38,743 $1,162,283 $722,283 $460,000 $779 $1,558 $3,375 $40,504 $1,215,114 $755,114 $480,000 $813 $1,626 $3,522 $42,265 $1,267,945 $787,945 $500,000 $847 $1,693 $3,669 $44,026 $1,320,776 $820,776 INTEREST RATE 8.0% 26 The Home Loan Shop

29 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $161 $323 $699 $8,391 $251,717 $151,717 $120,000 $194 $387 $839 $10,069 $302,061 $182,061 $140,000 $226 $452 $979 $11,747 $352,404 $212,404 $160,000 $258 $516 $1,119 $13,425 $402,748 $242,748 $180,000 $290 $581 $1,259 $15,103 $453,091 $273,091 $200,000 $323 $645 $1,398 $16,781 $503,434 $303,434 $220,000 $355 $710 $1,538 $18,459 $553,778 $333,778 $240,000 $387 $775 $1,678 $20,137 $604,121 $364,121 $260,000 $420 $839 $1,818 $21,815 $654,465 $394,465 $280,000 $452 $904 $1,958 $23,494 $704,808 $424,808 $300,000 $484 $968 $2,098 $25,172 $755,152 $455,152 $320,000 $516 $1,033 $2,237 $26,850 $805,495 $485,495 $340,000 $549 $1,097 $2,377 $28,528 $855,839 $515,839 $360,000 $581 $1,162 $2,517 $30,206 $906,182 $546,182 $380,000 $613 $1,226 $2,657 $31,884 $956,525 $576,525 $400,000 $645 $1,291 $2,797 $33,562 $1,006,869 $606,869 $420,000 $678 $1,355 $2,937 $35,240 $1,057,212 $637,212 $440,000 $710 $1,420 $3,077 $36,919 $1,107,556 $667,556 $460,000 $742 $1,484 $3,216 $38,597 $1,157,899 $697,899 $480,000 $775 $1,549 $3,356 $40,275 $1,208,243 $728,243 $500,000 $807 $1,614 $3,496 $41,953 $1,258,586 $758,586 INTEREST RATE 7.5% Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $154 $307 $665 $7,984 $239,509 $139,509 $120,000 $184 $368 $798 $9,580 $287,411 $167,411 $140,000 $215 $430 $931 $11,177 $335,312 $195,312 $160,000 $246 $491 $1,064 $12,774 $383,214 $223,214 $180,000 $276 $553 $1,198 $14,371 $431,116 $251,116 $200,000 $307 $614 $1,331 $15,967 $479,018 $279,018 $220,000 $338 $676 $1,464 $17,564 $526,920 $306,920 $240,000 $368 $737 $1,597 $19,161 $574,821 $334,821 $260,000 $399 $798 $1,730 $20,757 $622,723 $362,723 $280,000 $430 $860 $1,863 $22,354 $670,625 $390,625 $300,000 $461 $921 $1,996 $23,951 $718,527 $418,527 $320,000 $491 $983 $2,129 $25,548 $766,428 $446,428 $340,000 $522 $1,044 $2,262 $27,144 $814,330 $474,330 $360,000 $553 $1,105 $2,395 $28,741 $862,232 $502,232 $380,000 $583 $1,167 $2,528 $30,338 $910,134 $530,134 $400,000 $614 $1,228 $2,661 $31,935 $958,036 $558,036 $420,000 $645 $1,290 $2,794 $33,531 $1,005,937 $585,937 $440,000 $676 $1,351 $2,927 $35,128 $1,053,839 $613,839 $460,000 $706 $1,412 $3,060 $36,725 $1,101,741 $641,741 $480,000 $737 $1,474 $3,193 $38,321 $1,149,643 $669,643 $500,000 $768 $1,535 $3,327 $39,918 $1,197,545 $697,545 INTEREST RATE 7.0% The Home Loan Shop 27

30 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $146 $292 $632 $7,585 $227,544 $127,544 $120,000 $175 $350 $758 $9,102 $273,053 $153,053 $140,000 $204 $408 $885 $10,619 $318,562 $178,562 $160,000 $233 $467 $1,011 $12,136 $364,071 $204,071 $180,000 $263 $525 $1,138 $13,653 $409,580 $229,580 $200,000 $292 $583 $1,264 $15,170 $455,089 $255,089 $220,000 $321 $642 $1,391 $16,687 $500,598 $280,598 $240,000 $350 $700 $1,517 $18,204 $546,107 $306,107 $260,000 $379 $758 $1,643 $19,721 $591,616 $331,616 $280,000 $408 $817 $1,770 $21,237 $637,125 $357,125 $300,000 $438 $875 $1,896 $22,754 $682,633 $382,633 $320,000 $467 $934 $2,023 $24,271 $728,142 $408,142 $340,000 $496 $992 $2,149 $25,788 $773,651 $433,651 $360,000 $525 $1,050 $2,275 $27,305 $819,160 $459,160 $380,000 $554 $1,109 $2,402 $28,822 $864,669 $484,669 $400,000 $583 $1,167 $2,528 $30,339 $910,178 $510,178 $420,000 $613 $1,225 $2,655 $31,856 $955,687 $535,687 $440,000 $642 $1,284 $2,781 $33,373 $1,001,196 $561,196 $460,000 $671 $1,342 $2,908 $34,890 $1,046,705 $586,705 $480,000 $700 $1,400 $3,034 $36,407 $1,092,214 $612,214 $500,000 $729 $1,459 $3,160 $37,924 $1,137,722 $637,722 INTEREST RATE 6.5% Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $138 $277 $600 $7,195 $215,838 $115,838 $120,000 $166 $332 $719 $8,634 $259,006 $139,006 $140,000 $194 $387 $839 $10,072 $302,173 $162,173 $160,000 $221 $443 $959 $11,511 $345,341 $185,341 $180,000 $249 $498 $1,079 $12,950 $388,509 $208,509 $200,000 $277 $553 $1,199 $14,389 $431,676 $231,676 $220,000 $304 $609 $1,319 $15,828 $474,844 $254,844 $240,000 $332 $664 $1,439 $17,267 $518,012 $278,012 $260,000 $360 $719 $1,559 $18,706 $561,179 $301,179 $280,000 $387 $775 $1679 $20,145 $604,347 $324,347 $300,000 $415 $830 $1,799 $21,584 $647,515 $347,515 $320,000 $443 $885 $1,919 $23,023 $690,682 $370,682 $340,000 $470 $941 $2,038 $24,462 $733,850 $393,850 $360,000 $498 $996 $2,158 $25,901 $777,017 $417,017 $380,000 $526 $1,052 $2,278 $27,340 $820,185 $440,185 $400,000 $553 $1,107 $2,398 $28,778 $863,353 $463,353 $420,000 $581 $1,162 $2,518 $30,217 $906,520 $486,520 $440,000 $609 $1,218 $2,638 $31,656 $949,688 $509,688 $460,000 $636 $1,273 $2,758 $33,095 $992,856 $532,856 $480,000 $664 $1,328 $2,878 $34,534 $1,036,023 $556,023 $500,000 $692 $1,384 $2,998 $35,973 $1,079,191 $579,191 INTEREST RATE 6.0% 28 The Home Loan Shop

31 Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $130 $261 $567 $6,804 $204,404 $104,404 $120,000 $157 $314 $681 $8,172 $245,284 $125,284 $140,000 $183 $366 $794 $9,528 $286,165 $146,165 $160,000 $209 $419 $908 $10,896 $327,046 $167,046 $180,000 $235 $471 $1,022 $12,264 $367,927 $187,927 $200,000 $261 $523 $1,135 $13,620 $408,808 $208,808 $220,000 $288 $576 $1,249 $14,988 $449,688 $229,688 $240,000 $314 $628 $1,362 $16,344 $490,569 $250,569 $260,000 $340 $681 $1,476 $17,712 $531,450 $271,450 $280,000 $366 $733 $1,589 $19,068 $572,331 $292,331 $300,000 $392 $785 $1,703 $20,436 $613,212 $313,212 $320,000 $320 $838 $1,816 $21,792 $654,092 $334,092 $340,000 $445 $890 $1,930 $23, ,973 $354,973 $360,000 $471 $942 $2,044 $24,528 $735,854 $375,854 $380,000 $497 $995 $2,157 $25,884 $776,735 $396,735 $400,000 $523 $1,047 $2,271 $27,252 $817,616 $417,616 $420,000 $549 $1,100 $2,384 $28,608 $858,496 $438,496 $440,000 $576 $1,152 $2,498 $29,976 $899,377 $459,377 $460,000 $602 $1,204 $2,611 $31,332 $940,258 $480,258 $480,000 $628 $1,257 $2,725 $32,700 $981,139 $501,139 $500,000 $654 $1,309 $2,838 $34,056 $1,022,020 $522,020 INTEREST RATE 5.5% Loan Amount Weekly Fortnightly Monthly Yearly Total Interest $100,000 $134 $269 $583 $6,996 $210,086 $110,086 $120,000 $148 $297 $644 $7,728 $231,906 $111,906 $140,000 $173 $346 $751 $9,012 $270,558 $130,558 $160,000 $198 $396 $858 $10,296 $309,209 $149,209 $180,000 $222 $445 $966 $11,592 $347,860 $167,860 $200,000 $247 $495 $1,073 $12,876 $386,511 $186,511 $220,000 $272 $544 $1,181 $14,172 $425,162 $205,162 $240,000 $297 $594 $1,288 $15,456 $463,813 $223,813 $260,000 $321 $643 $1,395 $16,740 $502,465 $242,465 $280,000 $346 $693 $1,503 $18,036 $541,116 $261,116 $300,000 $371 $742 $1,610 $19,320 $579,767 $279,767 $320,000 $396 $792 $1,717 $20,604 $618,418 $298,418 $340,000 $420 $841 $1,825 $21,900 $657,069 $317,069 $360,000 $445 $891 $1,932 $23,184 $695,720 $335,720 $380,000 $470 $941 $2,039 $24,468 $734,371 $354,371 $400,000 $495 $990 $2,147 $25,764 $773,023 $373,023 $420,000 $519 $1,040 $2,254 $27,048 $811,674 $391,674 $440,000 $544 $1,089 $2,362 $28,344 $850,325 $410,325 $460,000 $569 $1,139 $2,469 $29,628 $888,976 $428,976 $480,000 $594 $1,188 $2,576 $30,912 $927,627 $447,627 $500,000 $618 $1,238 $2,684 $32,208 $966,278 $466,278 INTEREST RATE 5.0% The Home Loan Shop 29

32 Get in touch, or come in and see us soon... Wellington Branch Corner of Victoria and Mercer Street PO Box Manners Street Wellington Lower Hutt Branch 122 Queens Drive Lower Hutt Call (04) Call (04) Freephone 0508 LOAN SHOP ( ) Fax (04) Visit Follow us on Facebook 100% Kiwi owned and operated!