Waitakere New Settlers' Guide 2009 - Auckland Council

Buying a propertyYou can buy a house only if you can pay the full price of the property or arrange a long-term loan(mortgage) from a bank or lending institution. The bank will look at your income, what you own,your debts, and your credit rating. Most banks will ask you to pay a deposit of the price (this maybe 10 per cent) of the house before allowing you to have a mortgage. Talk to your bank for moreinformation about lending criteria and processing fees.Mortgages are available from banks, credit unions, finance houses, insurance companies andsavings and loan associations. Make sure you choose the mortgage that is most suitable for you.Processing feesAll lenders charge a fee for processing your loan, which is usually one per cent of the amountborrowed, but can sometimes be less.Buying from a real estate agentIf you want to buy a property involving a real estate agent, you must register your interest withthe agent. You will need a lawyer to ensure the value of the property, that you have the money,and confirm the conditions of sale agreement before the contract becomes unconditional. Realestate agents have offices in most shopping centres and they advertise in the Yellow Pages.Buying privatelyYou can buy a property privately by making an offer or by negotiation. You still need a lawyerbefore signing the contract for the sale of the property.Buying at auctionIf you want to buy a property at auction you must register your interest with the estate agent. Talkto your lawyer about the value of the property, make sure you have the money and arrange whowill make the bids at the auction.The Real Estate Institute of New Zealand is responsible for the regulation of the real estate industryand you can find more information about purchasing a property and market trends atwww.reinz.org.nz®19