Navigating the world of mortgages and home loan requirements NZ lenders provide can be confusing, especially for first home buyers. At Mortgage Masters, we’re the independent mortgage broker Auckland city first home buyers can count on for clear advice on entering the NZ housing market.
Understand Your Buying Capacity
The type of home loan Auckland first home buyers can get will vary from lender to lender. These lenders will assess your buying capacity by looking at a number of factors relating to your financial condition, including:
- Income
- Current assets
- Credit history
- Living expenses
- How much of a deposit you can make
- Current debts and other financial commitments
An independent mortgage broker can help you find the best home loan for your buying capacity and specific circumstances.
First Home Loan
You can apply for any type of home loan if you meet lending criteria, however, as a first home buyer you may be eligible for a First Home Loan. Most lenders require you to have a deposit of at least 20%, while a First Home loan only requires a deposit of 5%. First Home Loan requirements NZ buyers must meet are as follows:
- You must be a New Zealand citizen or permanent resident
- You must not already own any property
- You must be planning to live in the house you are buying
- Your household income for the 12 months before you apply must be less than $85,000 for individuals or less than $130,00 combined if you are buying the property with other people
Keep in mind there are restrictions on the value of the property you can buy, depending on the region you live in and whether you are buying an old or a new property. For example, if getting a home loan Auckland first home buyers must look for an older property priced below $600,000 or a newer property below $650,000 for new properties. You’ll also still have to meet other lending criteria.
Withdrawing from Your KiwiSaver
If you’ve been a member of KiwiSaver for at least three years, you may also be eligible to withdraw money from your super account to use as a deposit on your first home. If you’re eligible, you can withdraw any contributions you have made as well as interest and tax credits, if you leave a minimum balance of $1000 in your KiwiSaver account.
KiwiSaver HomeStart Grant
If you’ve been a member of KiwiSaver for at least three years and have contributed to your account consistently during that time, you may also qualify for a KiwiSaver HomeStart grant of up to $10,000. To qualify for a HomeStart grant you’ll need to meet the same eligibility criteria as for a First Home Loan:
- You must be planning to live in the home
- You must not own any other property
- The property price must be less than the value cap for your region
- Your annual income must be less than $85,000 per year (or $130,000 combined income if you are buying the property with other people)
If you’re buying a property with other people and you each qualify for a HomeStart grant you can combine these grants and use them all towards your deposit. The amount of your grant will depend on how long you’ve been contributing to your KiwiSaver and whether you’re buying a new or older home.
Free Home Loan Consultations for First Home Buyers
Mortgage Masters are the independent mortgage broker Auckland city first home buyers can trust to help them enter the NZ housing market. Contact us today for a free consultation.
