Buying your first home can be extremely satisfying but also a stressful time.
As well as the excitement of getting into your own home there are a number of things that can cause a lot of stress. After all, for most people this will be the largest purchase that they have made. Mortgage Ladies & Co Advisors can arrange your home loan, answer all your questions and be there from the start to the end of the process.
"With you every step of the way"
▾ How much deposit do I need?
Deposit requirements vary between lenders and are based on criteria that can change over time. While most lenders say the ideal deposit is 20% of the purchase price there are lenders that lend with deposits as low as 10% and even sometimes lower.
Lenders will often require that at least some of the deposit must be a genuinely saved and can be demonstrated with a minimum of 3-months savings history in either a bank account or investment including KiwiSaver.
If you are a first home buyer and have been in KiwiSaver for at least 3 years you may be eligible to withdraw the money in your Kiwisaver (except for the $1,000 kickstart). You may also be eligible to access a Kiwisaver Homestart Grant which is available from Housing New Zealand. Previous home buyers may also be eligible to withdraw from their KiwiSaver and a Kiwisaver Homestart Grant but must first apply for approval.
In some cases you might qualify and benefit from the Welcome Home Loans package where you may be able to borrow up to 90% of the purchase price.
Another option could be the use of a guarantor who can offer security for the portion you need to borrow over 80% of the purchase price. Your guarantor should be close family and be in a strong financial position. They would need to seek independent legal advice before agreeing to act as a guarantor.
Your Mortgage Ladies and Co Adviser can advise you on what you level of deposit you will need.
▾ What will repayments be?
It is important to know what your repayments will be so you can ensure that you will not be putting yourself under too much financial pressure when you buy your first home. Do not forget the other expenses associated with owing your own home, such as council rates, house insurance, life/mortgage repayment insurances, repairs and maintenance and body corporate fees. It is also important that you plan for times when interest rates may increase, or if your income decreases e.g. you start a family. Your Mortgage Ladies and Co Adviser can advise you on mortgage repayments and also show you how to pay off your mortgage faster.
▾ Which is the best lender?
Your Mortgage Ladies and Co Advisor will do all the work for you. They have direct relationships with the banks and non-bank lenders and are able to negotiate a great deal for you. They will generate multiple offers from the banks and then negotiate to save you as much money as possible. This then gives you more spending money or the opportunity to pay your mortgage back quicker.
▾ What else do I need to know?
Buying your first home can be stressful and you should work with your Mortgage Ladies and Co Adviser to make sure you are able to make the process as easy as possible.
Get your mortgage pre-approved – your Adviser can arrange this. Research the property to avoid surprises – LIM reports, building reports and valuations can help.
Manage the risks – house insurance is a legal requirement with a mortgage, but Income or Mortgage Protection Cover is essential if you are reliant on your income to pay the mortgage.
Buying your first home is a big decision and you want to make sure you do it right. Your Mortgage Ladies and Co Advisers will able to help you through the whole process of buying your first home.