First Home Buyers
Buying your first home is an exciting time. Owning a home is a milestone that many hard working Kiwi’s aspire to. We are proud to share our knowledge and service in making your dream a reality.
An experienced mortgage adviser can steer you through the labyrinth of options and provide you with all the information you’ll need to get started with your first home loan. I work especially hard to get first home buyers started on the property ladder. There are a large number of options to consider which can become daunting, confusing and costly should you make an uninformed decision.
Things to consider:
- Your EARNINGS will determine the amount you can borrow with the lenders having “debt servicing models” to assess your ability to repay their loan. The lenders servicing criteria and calculations vary enormously so while you may fail with one you may qualify with another. I am aware of these calculations so I will be able to give you accurate advice on your borrowing level.
- Your DEPOSIT will also be an important factor in determining what options are available to you. The majority of banks will consider lending up to 90% of your “Loan to Value Ratio” (LVR) meaning a deposit of 10% of your intended purchase price. There is however many “Reserve Bank” restrictions currently in place preventing lending to a 90% LVR so the usual 20% deposit may be required. I will be able to advise you further in this regard.
- The TYPE of deposit is something that the banks will look into. It can be partly or totally made up of a combination of “Savings” (evidenced through a bank account), a “Gifted Deposit” by way of assistance usually from a family member, “Additional Security” again usually through a family connection where a provider is willing to use their property as security for your loan, a “Family Loan” under certain conditions i.e. where the bank is satisfied that the loan will not incur principal repayments or interest repayments during its term (usually 30 years) and any demand for the repayment of the family loan can only be made upon the sale of the house. Sale of an “Asset” can also be considered subject to conditions.
- The assistance of KIWISAVER as a deposit. How much of my KiwiSaver can I use? What is the process for getting pre-approved to use my KiwiSaver savings? Will I be eligible for a “KiwiSaver HomeStart Grant” and if so how much. Up to what value can my house purchase be to allow me to use my KiwiSaver eligible savings? Will the level of my earnings affect my eligibility to use my KiwiSaver funds?
- The satisfactory CONDUCT OF YOUR ACCOUNT will be assessed through the provision of bank statements on your main day to day transaction account (where you income is deposit to) covering a 3 month period up to the date of your loan application.
- So with all these considerations in mind – ask Paul to arrange your first home loan with the peace of mind that he will be able to steer your through this important process.
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