The First Steps of Buying a Home NZ

When buying your first home, it’s easy to get swept up in the excitement and get ahead of yourself. At Mortgage Masters, we’re the Auckland mortgage company that specialises in helping Kiwis buy their first home. Here are some key insights into what to expect and prepare for when buying your first home, from home loan requirements NZ first home buyers are subject to and more.

Establish Your Current Financial Situation

Start by examining your lifestyle, financial situation, and goals. Do you have enough saved up to buy a house? Do you have a stable income? Do you know how much of a deposit you need? Are you eligible for the first home buyer’s grant? To get a home loan Auckland buyers must look at what they need to do to secure the necessary down payment, whether through a family gift, your KiwiSaver, your personal savings or a combination of the three.

Get Pre-Approval

By first meeting with a mortgage broker Auckland first home buyers can avoid making the mistake of looking for and falling in love with a property they may not be able to get. Set yourself up for success by getting mortgage pre-approval, which sends a strong message to sellers that you’re a serious buyer and that your finances are in order. It also gives you a clear idea of the price range of properties to look at.

Calculate All the Costs

As a new home owner, it’s important you have a clear understanding of the extra expenses you’ll be responsible for. These could include lenders mortgage insurance, homeowners’ insurance, rates and repairs, and maintenance of your new property. Ensure you’re aware of all the costs ahead of time and what you can do to manage them.

Explore Different Types of Home Loans

Explore what types of home loans Auckland first home buyers can choose from and which best fits your circumstances and current market conditions. For example, fixed home loans have an interest rate that is fixed for a certain period of time, generally one, three or five years. Once this term is over, the loan will switch to the variable rate offered by the lender. Fixed rates are better for budgeting but can have break fees and you risk missing out on a rate drop.

Rates on variable home loans are adjusted by the lender in a similar fashion to the RBNZ interest rates. These loans tend to be more flexible with more features like a redraw facility and the ability to break, refinance and make extra payments. The trade-off is uncertainty and higher costs during rate hikes. Many lenders offer the choice to split the loan, so you can keep part of it fixed and the rest on a variable rate. This allows you to strike a balance in managing the risks while still being able to access flexible loan options.

Shop Around for Different Loans

The more you shop around, the better your understanding of the options available to you and the more you can compare to ensure you get the best deal. Your mortgage broker can help assess your current situation, shop around on your behalf and provide you with a selection of options that are ideal for you.

H2: Consult a Mortgage Broker Auckland First Home Buyers Can Trust

At Mortgage Masters, the independent advisors at our Auckland mortgage company are here to help first home buyers achieve their property dreams. To find out more about home loan requirements NZ first home buyers should get in touch today for a free consultation

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