First Home Buyers
The Mortgage Application Process
If you’re buying your first home you may have a number of questions- Here are a couple that come to mind that might help?
How much deposit do I need?
With the new changes in force from the 1st October 2013 there are restrictions in place as to what banks can lend. Typically the banks are looking for you to have a 20 percent deposit towards your home-loan. (your KiwiSaver and first home subsidy can be used as part of your deposit)
If you DON’T have 20 percent to put towards a deposit there are some options available and we can help you explore these to get you the right mortgage.
Good News – with the Welcome Home Loan scheme if you have a deposit of 10% you still have a good chance of obtaining a mortgage!
Which is the best lender?
Unfortunately there is no straight forward answer to this question. Everyone wants to know which is the best bank and who offers the lowest interest rates and the answer will vary for each individual. Once we have a clear picture of your financial situation and requirements we will be able to advise you.
What are the repayments?
Use our online calculator as a guide. You want to ensure that you are not putting yourself under too much financial pressure. Remember that there are other fees that go along with owning your own home, council rates, house insurance, life/mortgage repayment insurance, repairs and maintenance.
We can go through your mortgage repayments and also help you plan for times when interest rates may increase or decrease.
Please contact us for more information. * Remember there is no charge for this service.
KiwiSaver and Housing NZ Subsidy
KiwiSaver could potentially help you with your deposit towards your first home.
Information on KiwiSaver and your first home
KiwiSaver offers you two features:
• KiwiSaver first-home savings withdrawal
• KiwiSaver first-home deposit subsidy (administered by Housing NZ)
These features can help you buy a home, or buy land to build a home on.
Check out Housing New Zealand Corporation for more details www.hnzc.co.nz
KiwiSaver – First Home Savings Withdrawal
To be eligible for a KiwiSaver withdrawal you must be a first home buyer and have been a member of KiwiSaver for at least three years. Contact us and we can find out how much you can withdraw. firstname.lastname@example.org
As a previous home owner, a member of KiwiSaver and providing you have not received the first home withdrawal before you may also be in a position to apply. Please contact us for further information.
New Zealand Housing – Deposit Subsidy
You can apply for the deposit subsidy if you have belonged to and regularly contributed to a KiwiSaver Scheme for at least three years.
The subsidy is $1,000 for every year you have contributed to the KiwiSaver scheme.
• 3 years ($3,000)
• 4 years ($4,000)
• 5 years ($5,000)
You can buy a property with other people who may or may not also qualify for a deposit subsidy.
To apply, we will need the following from you:
- Certified proof of address and identification – e.g. Passport/Driving License and a utility bill for your main residence.
- Bank statements dating back for the last three months for every account in use.
- 3 months’ wage slips (if you are issued with these) – alternatively, an employer’s confirmation of income.
To find out more please give us a call on 06 758 0487