Financing options for your first home

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Owning your own home gives you the opportunity to invest in your own asset. And unless you can pay for your home in cash, chances are that you’ll require a mortgage to pay for it. It’s something that most homeowners have, and yes, they usually do take years to pay off. But the advantage of paying a mortgage, as opposed to rent, is that you’re paying towards equity in property that you own – not your landlord.

When it comes to your finance options, regardless of whether you’re planning to buy or build there are a few ways to realise your goal of home ownership. It pays to do your research, but with that in mind, we’ve taken some time to put together a few options for you.

See if the Government can help

If this is your first home and you’ve been a contributing member to a KiwiSaver scheme for at least three years, you’re able to withdraw a significant amount of the money you’ve invested and put it towards a deposit. And if you qualify for a Welcome Home Loan underwritten by Housing New Zealand, you only need a 10% deposit instead of the usual 20%.

If you’re looking at building your first home, you could also be eligible for up to $10,000 per person to go towards the deposit of your new build through the Government’s KiwiSaver HomeStart grant. There are certain eligibility criteria you must meet, regional house price caps to work within, and it’s important to note the HomeStart Grant cannot be used to build a home only, and it must be put purchasing land as well. Find out more about both of these options on the Housing New Zealand website.

Shop around lenders

Whether you choose to work with a bank or not, getting a good deal comes from comparing interest rates, fees and negotiating terms and conditions wherever you look. It can pay to work with an experienced home loan broker at this stage, especially if you’re unsure of anything. They’ll be able to help you navigate the marketplace and help you secure a loan that a) you can pay off in a comfortable amount of time and b) hopefully secure a few perks such as cash back offers and incentives. 

Pick a number and stick to it

Determining a realistic budget is really important, especially with new builds where costs can change with variations. One thing we take pride in is providing more accurate estimates with our online design tool. Using it, you’re able to choose from dozens of plans and get prices on brand-new homes that update as you bring them to life on-screen.

By taking these four things into consideration, a goal of home ownership doesn’t have to be something out of reach. For any extra information around how you can get there in a brand new home, feel free to contact us. And if you need help finding land, we can give you a hand with that too. 

Published:  30 May 2019
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