Things we know - Covid19

25 March 2020
Things we know - Covid19

Things we know:


Loan Applications for purchase of new homes - yes at this stage it's business as usual and the banks have been given a mandate of free up funds as opposed to holding on to them. 


What will this mean for those of you waiting on loan approvals or settlement on new purchases?

Loan approvals from lenders - banks are an essentail service and will remain open. However where staff can work from home they will be so they are reducing their services. This could mean delays in loan approval turnaround times, opening up accounts (where needed) and getting loan documentation issued by the banks. 


LIM reports - these could be delayed given the closure of the businesses and working remotely.


Solicitors - Solicitors are generally working remotely with some closing. All settlements have to go through solicitors so we need to make sure your solicitor is available for when you need them to be and how the signing of mortgage documentation will occur (some are skyping, phoning and going through loan doumentation which the bank are using as a satisfactory method or disclosure of advice.


Valuations - these are no considered an essential sevrvice and will be closing up shop. This means any loan approvals that requires a valuation will have to make sure that this conditionshas an extension on the date of at least 1-2 weeks after this lockdown is lifted. 


Building inspections - again these are not considered an essential service and will be closing up shop. If you wish to have a builsing inspection you will need to make sure that this condition has an extension on the date of at least 1-2 weeks after this lockdown is lifted. 


Kiwisavers and other superannuation schemes - when deposit is reliant on these you need to make sure that what you expect you can use is available for use. Many of these funds are losing valu rapidly and while the markets are expected to recover if you need to use your kiwisaver and other super for your deposit toy need to discuss with your solicitor how to get those funds quickly in to their trust accounts for settlements.


First home buyers grant - we assume that Housing NZ will be working remotely. Apply online as soon as possible as they may take longer to process. The pre-approval for this grant asts for 5 months which is a good time to have access to it.


Stay Safe

This post was written by

Riley Blommerde - who has written 8 posts

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