Homebuyer’s FAQs

Q: Who are Squirrel?

Squirrel is a Mortgage Advisory and Brokering Service. We are NZ owned and we are not a franchise. We focus on friendly, quality advice from a team who have been in the industry a long time. We launched at the start of 2008 and write over $12m of home loan applications every month. Our office is in Auckland but we write mortgages for clients all over New Zealand and around the World.

Q: Why use a broker?

Good advice and a ton of experience.  We help you through the whole Buying Process (not just the mortgage.) Property will be one of your largest financial investments. When it goes wrong – it can go horribly wrong! Mortgages (and helping people like you buy property) is what we do – so we know all of the things to look out for. As brokers we also have more options available to us when it comes to finding a mortgage solution. Lenders have very different credit policies. By only talking to one lender you are potentially selling yourself short and getting a poor deal. Why take the risk when our service to you is free? Apply Online Now.

Q: How are you paid?

For mortgages over $100,000 our service to you is free. For a standard mortgage we are paid an upfront commission of between 0.50% and 0.65%, which varies slightly by lender. This commission is before our own costs and is also used to pay for any of our promotional offers to you. Non-bank lenders (which we may use for credit impaired deals) also pay us a small trail commission of between 0.15%-0.25% per year to provide ongoing support to you.

Q: Can I borrow 100%?

In short – no! Most banks now only lend up to 80%.  If you have good income we can typically get you to 90% and for some 95% but the borrowing costs are higher. Other options to think about are to use you parents as a Guarantor or vendor finance.

Q: How much can I borrow?

As a rule of thumb, you can borrow your income multiplied by 5. It differs if you’ve got kids or lots of cars! Of course the real calculations are a little more complicated then that, but that’s what we can work out for you. Apply Online Now

The table below gives you a rough idea. Make sure you think about your total household income including any boarder income.

Q: What if I cannot prove my income?

Low Doc mortgages have a lower thresh hold for proving your income, but in the current market we’ll still need to see good proof of income coming through your bank statements. With a low doc mortgage you sign a declaration of your income. This can be a really good option for self-employed people, especially if they have been in business less than 2 years. The maximum loan for low doc is currently 65% of the property value.

Q: What if I am overseas?

It is easy buying property in New Zealand. Legal documents (particularly mortgage docs) will need to be witnessed by NZ Consulate / Embassy or a Public Notary. Non residents can borrow up to 80% of a property’s value. We can look after you no matter where you are. The benefit of coming to Squirrel is that we will manage the whole transaction for you end-to-end including working with your solicitor, arranging a building inspection, and arranging a valuation if required. Overseas transactions take longer and we’ll need to do more paperwork. Apply Online Now.

We will need:

• Photo ID for each applicant (driver’s licence, Passport)
• Proof of income (a pay slip, 2 years tax returns, letter from employer,)
• Statement of Financial Position (in your currency)
• Three months of bank statements (internet printout is fine,)
• Sale and Purchase Agreement (Signed and Date; NOT required for preapprovals,)