5 Epic Home Loan Fails Every Kiwi Should Avoid

That Home Loan Hub

Mortgage mistakes can cost you thousands, and unfortunately, there are so many ways Kiwis keep stumbling into these financial traps. Welcome back to part two of our deep dive into the epic mortgage fails we see every day as advisors.
Ever fixed your mortgage for five years only to discover you need to sell or refinance? Those break fees can be brutal. Or perhaps you've "forgotten" to mention a couple of credit cards when applying for a loan? The banks' sophisticated credit checks will find everything, and that character mark against you can be difficult to overcome. Then there's the popular "interest-only forever" strategy that leaves homeowners with no equity building except through market increases—a precarious position if property values decline.
DIY mortgage applications might seem straightforward, but without expert guidance, you're likely submitting incomplete documentation to the wrong lenders. And that shiny new car purchase right before mortgage application? It could slash your borrowing power by tens of thousands, forcing you to compromise on your dream home.
Each of these mistakes comes with real consequences: delayed approvals, higher costs, reduced options, and unnecessary stress. But they're all avoidable with the right advice and timing. As mortgage advisors, we've seen these scenarios play out repeatedly, and we've helped countless Kiwis navigate around these pitfalls.
Whether you're a first-home buyer or a seasoned property investor, understanding these common mistakes can save you significant money and heartache. Take a pause before making major financial decisions when property purchase is on the horizon, and consider reaching out for professional guidance. Remember, the right mortgage structure isn't just about getting approved—it's about creating a financial foundation that supports your lifestyle and future goals without unnecessary restrictions or expenses.

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Chapters

1. 5 Epic Home Loan Fails Every Kiwi Should Avoid (00:00:00)

2. Dumb Kiwi Mortgage Fails Part 2 (00:00:20)

3. Fail #1: Five-Year Fix Trap (00:00:52)

4. Fail #2: Hidden Debt Disasters (00:01:26)

5. Fail #3: Interest Only Forever (00:02:16)

6. Fail #4: DIY Mortgage Applications (00:03:10)

7. Fail #5: Pre-Mortgage Car Purchases (00:03:54)