The dawn of a new year often inspires fresh goals and aspirations. For many, 2025 could be the year to achieve the dream of homeownership. Navigating the NZ property market can be both exciting and daunting, but with the right steps, you’ll be well-prepared to secure your dream home. This comprehensive guide will walk you through how to get a mortgage, find the best home loan NZ options, and take advantage of opportunities in a buyer’s market.
Step 1: Assess Your Financial Readiness
Before you start house hunting, it’s essential to understand your financial situation.
- Saving for a Deposit: Aim for at least 20% of the property’s value to avoid Low equity premiums, but most first home buyers need 10% of property value as a deposit to get their mortgages approved with low equity margins. This is more common when buying new built houses.
- Understanding Your Budget: Use online mortgage calculators to estimate how much you can afford to borrow. We’ve got one on our homepage.
- Checking Your Credit Score: A good credit score may help you secure a better mortgage interest rate. Tools like Credit Simple can provide a free report.
Step 2: Explore First Home Buyer Assistance Schemes
If you’re a first home buyer, New Zealand offers several programs to help:
- KiwiSaver First Home Withdrawal: Use your KiwiSaver savings for your deposit if you’ve contributed for at least three years.
- First Home Partner Scheme: A shared-ownership option for those needing assistance with their deposit. Example – Kainga Ora
Step 3: Secure Mortgage Pre-Approval
A mortgage pre-approval gives you clarity on your borrowing capacity and positions you as a serious buyer. To get pre-approved:
- Gather necessary documents, including proof of income, expenses, and ID.
- Consult a NZ home loan adviser to compare offers and find the best deal for you. Give us a call right now on 021 707 540 and get our personal guideline in your first home buying journey. Our team members have over 20 years of banking sector experience.
- Review pre-approval terms carefully, including interest rates and repayment options.
Step 4: Begin Your Property Search
With a pre-approval in hand, you’re ready to explore the NZ property market:
- Define Your Priorities: Consider location, property type, and proximity to amenities.
- Research the Market: Platforms like Trade Me Property, Oneroof.co.nz and realestate.co.nz are great starting points.
- Attend Open Homes: Inspect properties thoroughly and ask questions to the agents and try to gather seller expectations around the asking price.
- Work with a Real Estate Agent: An experienced agent can guide you and provide insights tailored to your goals.
Step 5: Conduct Due Diligence
- Order a Building Inspection: Check for structural issues or potential repairs.
- Review the LIM Report: Learn about zoning, drainage, and permits.
- Consult Your Lawyer: They’ll review contracts and ensure there are no legal red flags and guide you until settlement.
Step 6: Make an Offer
When you’ve found the right home and completed due diligence, it’s time to make an offer:
● Conditional Offer: Includes conditions like finance approval, LIM report, or inspection results.
● Unconditional Offer: Made without conditions and more appealing to sellers, though riskier for buyers. Generally, the offers are conditional and the buyer works together going unconditional by meeting the conditions outlined. Same applies for the home vendor as well. Note that offers made in live auctions can only be unconditional.
Step 7: Finalise Your Loan and Settlement
Once your offer is accepted:
- Confirm your first home loan by submitting the sale and purchase agreement to your adviser.
- Arrange Insurance: All lenders require home insurance before settlement and here at Mortgage Masters we can assist you with this requirement and help you find the best products in the market.
- Prepare for Settlement Day: Your lawyer will handle the transfer of funds and property title
Bonus Tips for First Home Buyers in 2025
- Leverage Technology: Apps like Sorted or PocketSmith can help manage your finances.
- Stay Informed: Monitor updates in the NZ property market and interest rates to time your purchase. Check out relab.co.nz and make use of their free trial.
- Seek Expert Advice: Advisers and lawyers, can provide tailored insights.
Selling in a Buyer’s Market
If you’re wondering how can I sell in a buyer’s market, focus on presenting your property as a must-have:
- Highlight Unique Features: Showcase elements that make your home stand out.
- Competitive Pricing: Research comparable properties to set a realistic price.
- Professional Staging: Make your property appealing to a wide range of buyers.
Common Mistakes to Avoid
- Skipping Pre-Approval: Without it, you risk falling in love with a property outside of your budget.
- Neglecting Due Diligence: Avoid costly surprises by thoroughly investigating the property. We recommend investing in a builder’s report.
- Rushing Decisions: Take your time to understand every step of the buying process. You should consult your trusted mortgage – Adviser, Mortgage Masters to help you evaluate factors when buying real estate in NZ.
Start Your Homeownership Journey in 2025
Buying a house is a significant milestone, but with preparation and the right support, you can navigate the process confidently. At Mortgage Masters, we specialize in helping you secure the perfect NZ home loan tailored to your needs. Whether you’re buying your first home or looking for advice on selling in a buyer’s market, we’re here to guide you every step of the way.
Ready to make your dream of homeownership a reality? Contact us today on 021 707 540 to take the first step!
