Keeping It Simple
Easy Finance Options for
Trucks & Commercials, Machinery, Business Vehicles etc.
Non Bank Property and Development Finance
Fast, Easy and Professional
Terminology
The following are our interpretation of the terms, as a customer you must discuss this with a professional and understand these before making any financial or binding commitments.
Mechanical WarrantyA major portion of vehicles sold in the NZ market are used imports. This aftermarket warranty usually is an extended version of the manufacturer’s warranty and covers any mechanical failure for the period the warranty is purchased. Various warranties are available and each operates on their documented terms and conditions that are generally easy to maintain. This is a great tool that offers peace of mind and protects against unplanned mechanical failures.
Sales and Purchase agreementA legal document signed between the seller and the buyer that forms a contract to sell the detailed property or item as per the conditions written, and signed as accepted by the two parties. It is important to read this well before signing. It is always better to stipulate “subject to finance approval” at the time of signing. In most case even if the loan is per-approved the lender will need to know of the property before giving their go ahead. Once signed the two parties can only get out of the contract by either implementing it or by mutual consent.
DepositThe deposit is the money put in by the buyer at the time of signing the S&P plus the total money the buyer will put from his side prior to the purchase of the property. The balance of the money will be paid by the lender who has given approval of the mortgage. Usually the lenders require proof that the deposit is not borrowed or is an amount of money available without any commitment to the buyer.
Loan to Value Ratio - LVRThis is a term used by lenders that is the ratio of the actual loan taken over the total value of the security offered. The rate of lending, approval conditions and some key deciding factors are linked to LVR by the lender.
Unconditional OfferThis is the statement in the S&P agreement that there are no open conditions to the contract and that the seller and the buyer agree unconditionally to go ahead with the transaction on the per-agreed date. This will assume that finance is available, no more clarifications are required and all reports required for the assessment have been carried out and accepted by all parties.
LawyerThe lawyer plays a key role by arranging the mortgage transaction. Lenders’ money is transferred to the lawyers trust account and then paid to the seller via their lawyer. This protects the buyer as well as the seller against any fraudulent activity and also ensures that all conditions of the sale are met before the transfer of property is legalized.