FIRST HOME BUYERS
We make the Kiwi dream a reality
Congratulations on taking your first steps towards owning your very own slice of paradise. There truly is no better feeling than coming home to a place to call your own. But before you can splash some paint around, replace those ghastly drapes and throw your first house-warming party, there’s a few things to consider and plan for first.
That’s where having our experience on your side can really help. Not only are we on your side, we're also along your side to answer your silly and not so silly questions. We’re the property and finance eggheads that help you get the best deal on finance, find the right property, liaise with real estate agents, solicitors and banks. We take the stress and fear out of the process and make it easier for you to get into your first home.
How much can I borrow?
This is the big question, and one that can have several different answers depending on how much you earn, how much you spend, how big your deposit is and the property itself. Just like not all houses are the same, the same applies to lenders. As all lenders have different approaches to all of these factors, there truly is no one simple answer. That’s why it’s crucial to understand and pick the right lender specific to your needs. That’s where we come in. We know all the banks policies inside out. Meaning we can always crack the best deal for you. To give you an indication on what you could borrow, use our handy calculator or better yet get in touch.
How much deposit do I really need?
The bigger the deposit you have, the less interest you’ll pay and the more options you’ll have to choose from. As a general rule of thumb, most banks will lend up to 80% of a property’s value. However, if you have less than a 20% deposit, the good news is many banks will still lend to you.
All banks have a certain amount of money they can lend to people with less than a 20% deposit. Whilst there are often a few more hoops to jump through, finding access to these funds at the right bank for you is where we can really help. We can get you looking your best and at the front of the queue.
Getting help from Mum and Dad
Ahhh….the good ol’ Bank of Mum and Dad. If you’re fortunate enough that your parents are in a position to help out, this can often be a good way to help you get a leg-up on the ladder. This can be done by two ways. Either by them acting as guarantor/co-borrower to your loan; or, by gifting money to go towards your purchase. To act as a guarantor/co-borrower, your parents will need to have available equity in their own home or investment property and the ability to repay the guaranteed amount if called upon. The amount they can guarantee is often limited to a maximum of 20% of your properties value.
Instead of, or in addition to, going guarantor/co-borrower your Mum and Dad can also more simply give you money towards your purchase in the form of an interest-free non-repayable gift. In any circumstance it’s best you, Mum and Dad chat with us to go through your available options together.
Can I use my KiwiSaver?
If you’re buying your first home and have been contributing to Kiwisaver for more than three years, then the good news is you’ll be able to use a good chunk of your Kiwisaver to go towards your deposit. In fact, you can withdrawal all but your $1,000 government kickstart to get you going. The KiwiSaver HomeStart grant is another means to get you into your first home faster. If you’re purchasing an existing home then you could qualify for up to $5,000 for each member. If you’re building or purchasing a brand new home, or purchasing land to build a new home on, then you could qualify for $10,000 for each member. That’s up to $20,000 for a couple to get you into a shiny new property faster.
To qualify for the KiwiSaver HomeStart grant you must:
- Have been contributing the required minimum amount to KiwiSaver for at least three years
- Be 18-years of age or over
- Be purchasing or building your first home
- Have a household income (before tax) of less than $85,000 per year (for one person), or less than $130,000 per year (for two or more people).
- Have a deposit that is 10% or more of the purchase price, including the addition of the grant
- Plan to live in the house for at least 6-months following settlement or completion of the property
When buying your first home, every little bit helps, so make sure you talk to us about all the potential options available to get you into your slice of paradise sooner!
Handy calculators and resources to help you into your first home
Quirky Bird's Top Tips
- Try living like you would need to with a mortgage for 3-months. Proving this possible goes a long way towards your mortgage success.
- Know your budget- what you can afford and where.
- Don’t forget to factor in additional costs such as legal fees moving costs rates and insurance.