Onion Home Loans
Onion Home Loans is who to turn to when you are looking to buy or build a home. Instead of you having to shop around for the best deal among New Zealand’s many loan providers, contact Onion Home Loans and they will do this on your behalf.
Their extensive partnership with various banks and other mortgage suppliers mean that they will be in a better position to negotiate for a more affordable rate. They make the process easier as they deal directly with the bank offering the mortgage. And the one-on-one service you get from them does not end after disbursement; it continues right to the moment you walk into your new home.
What you need to get an Onion Home Loan
- To be able to get financing from Onion you will need to have at least 20% of the value of the property.
- You need to provide evidence of your ability to make the repayments. To help yourself determine this you can use the calculator provided on the Onion Home Loan website. Put in the amount you need, or the value of the property you want to purchase, the desired tenure of the loan in years and the desired frequency of repayments and you will get a figure for the repayments you will need to make.
- To assess your ability to make repayments, the lender will need to know your gross income, whether you’re paid weekly, fortnightly or monthly.
- You will need to tell them about any other loans your may be servicing or credit card payments you may be making. Other regular expenses including insurance premiums and rent also need to be disclosed.
- Any issues you may have had in your credit history will need to be revealed as well.
Types of products
Onion Home Loans offers a variety of loan products potential and existing homeowners can take advantage of. Some of these are described below:
Interest only loans
This kind of loan will see you only pay the interest of a loan without actually paying the principal amount until an agreed time. When that time comes you can pay off the amount as a lump sum or convert it to a table loan.
This allows you to use the extra money you would have spent on repayments to fund other exigencies. Property investors find this kind of mortgage useful as it allows them to undertake different projects simultaneously.
These work more or less like interest only loans and when construction of the house is complete it can be converted into a table loan. The amount of the loan that is available is usually just enough to fit the construction budget. Usually the loan amount is drawn down in bits to fund progressive stages of the construction. A contract might need to be drawn up with a reputable construction company to facilitate this loan so that construction milestones are clear.
Turnkey construction loans
Unlike a typical construction loan, a turnkey construction loan is hinged on completion of the building and does not feature periodic disbursements based on construction milestones. Based on the agreement between you and the contractor, a deposit is paid when the contract is being signed and the rest is paid only after the project is complete.
These home loans are suited to people with regular incomes as repayments are of a fixed size and paid at regular intervals- monthly, weekly etc. unlike interest only loans, table loans combine loan principal and interest in the repayments. There is the option of choosing a fixed or floating interest rate with this kind of loan.
Revolving home loans
A revolving home loan works more or less like an overdraft. With interest being calculated on the daily balance of the loan, you can keep interest low by making your repayments regularly. Or you can have a direct debit on your account to make things easier. Since no fixed repayments apply with this kind of home loan, it is suitable for Kiwis who are not salaried or have irregular income. It is, however, tempting to stretch your credit to the limit so you have to exercise discipline.
Why choose Onion Home Loans?
- Take advantage of their deep knowledge of products and services offered by different lenders to quickly find one that will work for you.
- Onion Home Loans can structure your payments to potentially save you money you would have lost had you gone straight to a bank.
- Friendly assistance on phone whenever you need it.