In this episode, we discuss the turnaround time it takes to get a mortgage approved in New Zealand.
Right now the banks can take up to 7 business days to open your email to and start to process your mortgage. They are incredibly short-staffed, but demand is also increasing.
Typically due diligence on a brand-new off-the-plan property will last 10 days. That means that there are only three days left for the bank to approve your mortgage for an investment property.
Landlords and property investors should, therefore, work with experienced and knowledgeable mortgage brokers who can ensure that the mortgage application will go through BEFORE the application goes to the bank.
If the banks have questions about your application, then it may be another 7 days (after you get back to them) where the bank can finally approve your application.
This is important since developers are getting tighter on 10-day due diligence periods, and are refusing extensions. They can do this because the property market is so hot at the moment.
We also mention the Property Investor Quiz. This 7-question quiz will give you a 'yes', 'no', or 'maybe' answer about whether you are in the financial position to invest in property.
