Often, says Stuart Wills, mortgage broker at the Mortgage Supply Company, the client has wrongly assumed they qualify. Wills says there are exemptions from the minimum loan to value ratio (LVR) rules if the house is new, and for people who qualify for the Government's Welcome Home Loan scheme. Too much debtBanks take a good look at borrowers' outside debt before offering a loan. Wills recommends clients pay off HPs and even student debt to make themselves more attractive to the bank. Home buyers who can't get a mortgage through their bank should try using a mortgage broker who has invariably seen the same problem before and can often get the loan over the line.

Source: New Zealand Herald January 24, 2017 16:07 UTC