How Does Non Bank Lending Work
Non bank lenders are defined as those lenders who have no New Zealand banking licence. Wholesale funding is made possible through their own sources. The funds are then lent out, with the margin as profit.
Mortgage managers can be described as another kind of lender which are frequently termed non bank lenders. These managers generally have agreements with banks. They access funds at their wholesale prices and then put the funds out (lend them) under own brand. The margin is included in end interest rate which will be paid by the borrower.
Every loan gets funded at individual loan level. The approving of loans process is controlled by the manager (according to guidelines) and also the customer and loan to eventual loan discharge.
Benefits of non bank lending
> Interest rates of non bank lenders could be lower
> Services offered by non bank lenders are superior to large banks. This is keenly felt when loan applications are processed.
> A few non bank lenders provide loans which have almost zero chance of approval from major lenders. These could be specialised loans and the loans which are blighted by credit impairment in the past.
> Pre-sales are not needed for development finance. It is possible for non bank lenders to fund a percentage of the project's end realisation- and not simply a percentage of the costs.
Refinancing a property may sound simple, but it is not. When you refinance a property, in Auckland for example, you simply don't change banks. It is an intricate process involving exchange of tough legal paperwork. Your documents will be carefully reviewed and the meaning of the terms explained. You will also be informed of your obligations and rights. The steps in the process will also be explained to you. Refinancing a property comes with its own fees.
If you want to discuss how to make the most of non bank finance for your Auckland property then contact the team at www.nonbank.co.nz. They can explain the ins and out of refinancing so that you can confidently get on the Auckland property ladder.
A number of ways exist to deal with mortgage arrears. It all boils down to you and your lender making an arrangement. Every lender is unique and has own procedures for tackling someone having difficulties paying the mortgage.
Making arrangements to pay off arrears
In case you can make the monthly mortgage payment, and your problem paying off the arrears, it is vital to begin paying the normal monthly installment. You should make an arrangement so that you can clear arrears.
Lenders at times will ask you to give arrears over a period of 12 months to 24 months. Request a longer time in case it is not possible for you to do this. Begin by paying the amount of money you can afford.
This is termed “capitalising” arrears. It is generally possible only on first mortgage arrears and generally only if the home value is much more than mortgage. The amount of money owed in arrears is added to total mortgage. The consequence is the rise of monthly payments. Repayment of arrears is distributed over rest of the mortgage.
It is important to deal with an experienced mortgage broker when searching for non-standard, no financial loans. The team at Non Bank are here to help you navigate the world of non bank lending- just visit their website www.nonbank.co.nz, to book a no obligation chat!
Contact our friendly team to make a booking!