Frequently Asked Questions

1. Do we have to pay GST when purchasing a property? (Jump to Answer ↓)
2. What is a mortgage broker? (Jump to Answer ↓)
3. Do you charge for your service? Surely you've got to make a profit somehow, or you wouldn't be able to survive in business? (Jump to Answer ↓)
4. Why should I choose ADVOCO Mortgages? (Jump to Answer ↓)
5. Is it true that mortgage brokers only acquire loans from banks or lenders that pay the highest amount? (Jump to Answer ↓)
6. How much will my deposit be? (Jump to Answer ↓)
7. How much will I need to earn to secure a loan? (Jump to Answer ↓)
8. What are fixed and floating interest rates? (Jump to Answer ↓)

1. Do we have to pay GST when purchasing a property?
In New Zealand GST is not payable on residential property sales

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2. What is a mortgage broker?
A mortgage broker is a personal consultant who 'brokers' or arranges finance from you from a selection of banks and money lenders. The advantage of using a mortgage broker is that they can negotiate on your behalf; they understand the bank's ever changing lending policy and are committed to finding the best home loan deal for you while you're off doing what you do best – finding the right home. Not only that, with the experience that experienced mortgage brokers have, they are able to point out potential pitfalls that unwary borrows are often subject to. It's a win/win situation that thousands on borrowers use every year to save them time, money and headaches when borrowing money.

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3. Do you charge for your service? Surely you've got to make a profit somehow, or you wouldn't be able to survive in business?
Great question. Our service is paid for by the bank we arrange your mortgage or home loan from. For standard residential mortgage we are paid commission of between 0.65% and 0.70% of the loan amount. Because we are saving the money lender (such as a bank) time and money by doing all the work for them, they are happy to pay us a fee for helping them grow their business. It's a win/win/win situation for you, us, the mortgage brokers and the bank as well. For non bank loans or banks we do not have a brokerage agreement with or finance companies (which we may use for credit impaired or mortgage arrears applications) we do charge a fee and this will depend on the complexity of the loan application and your individual situation. We will discuss the fee with you and its fully disclosed.

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4. Why should I choose ADVOCO Mortgages?
We guarantee an appointment within 24 hours of completing the online quote form. We take the stress out of getting a mortgage, with our friendly and experienced team that will help you every step of the way. From application – approval to settlement – assisting with valuers, liaising with your solicitor and ensuring your assets are protected. We are ex-bankers and have 20 years combined experience in the mortgage broking and banking business, so you know you can trust our advice. Our abundance of knowledge will cater to your enquiry efficiently and effectively.

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5. Is it true that mortgage brokers only acquire loans from banks or lenders that pay the highest amount?
No. Here at ADVOCO Mortgages we value the interests of our clients and only get the best deal to suit these interests. In no way to we favour any particular lenders based on the amounts they pay. We abide to strict company ethics and pride ourselves on this aspect.

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6. How much will my deposit be?
This depends on where you are currently living and your income; generally you need 5% saved deposit. If you have been in Kiwisaver for 3 years or more you may qualify for the home deposit subsidy. Contact us today about your current situation and your goals and we may be able to help you achieve them. We specialise in helping people in tight financial situations arrange home loans for their first property purchase when getting together a deposit can be a difficult task.

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7. How much will I need to earn to secure a loan?
To figure out the amount you need to earn depends on how big your loan will be. Basically the bigger the loan the more money you will need. Call us to see if you will meet the income criteria of our range of lenders.

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8. What are fixed and floating interest rates?
A loan with a floating interest rate is an amount, which needs to be paid back, that has interest rates that are subject to change from time to time. A loan with a fixed interest rate is a loan that has fixed repayments that will be the same for the term of that fixed rate. In New Zealand, these fixed rate terms are usually from 6 months to 5 years. Floating rates are a lot more flexible giving you the freedom to pay when you like without paying penalty fees for early repayment. We can help find the rate that is best for you depending on your situation.

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9. What does ADVOCO mean?

ADVOCO is a Latin word meaning "to call an adviser" Latin is synonymous with old fashion values like trust, integrity, dependability - the very foundation of personal financial advice.

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Unsure whether fixed or floating is best for you?
Then contact us now for more information or advice on whether floating or fixed rate interest is best for you and your situation.

Got a Question that hasn't been answered here?
Feel free to contact us more information or advice. We're happy to advise you and give you the benefit of our years or experience advising clients on how to borrow (and pay off) money successfully.

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