When it comes to renovating, finances are a big consideration. So it pays to get information from an expert in the financial field. Not only does a mortgage broker have this specialist knowledge, but they have relationships with all the major banks and lenders.
Because finances are such a big focus, there are a lot of questions that come up. These are 4 of the most common…
1: At what stage of the renovation should I engage a mortgage broker?
It is best to engage a mortgage broker as early in the process as possible. They can give you advice on how much you can borrow and what the requirements would be. Then, when you meet with your builder and architect, you know exactly what your budget is.
2: When will the funds be available during the renovation process?
Your mortgage broker can help you set up the correct funding facility from the beginning so that you can have access to the funds when you need them, without it costing you anything in interest until the funds are utilised.
3: Should I switch banks to get the best deal or can I take a second mortgage with another financier?
It is often easier sticking with your current bank, unless they say NO or there is a particular reason you wish to change. Your existing bank will have all of your mortgage and relevant information, and should be able to help. Changing banks can be a costly and time consuming process.
4: What other costs should I consider? Valuation, legal fees, insurance etc
Depending on the type and scale of work you may need a registered valuation to show the current value and the “completed” value. The bank may also require you to take Builder’s Risk insurance to cover the work being completed during the renovation process.
There are a lot of different professions involved in a renovation. If you are confused about who you should be involving and at what point you should be talking to them, then you should definitely give Jack a call. Here at Jack we offer full project management.
That means we are with you from the start when the renovation is just a picture in your mind, right through to the final sign off and compliances. We partner with specialists that we trust, like architects, designers, and mortgage brokers. We can help you each step of the way, so give us a call about your renovation.
Ali Toumadj / Director / [email protected]
Prosper Group DDI 09 282 4537 / Mob: 021 277 1447 / Fax: 09 478 0179
Unit L1 / 4 Antares Place, Mairangi Bay, Auckland 0632
PO Box 156, Greenhithe, Auckland 0756
www.prosper.org.nz