With interest rates at historical lows, the property market a little flatter and home loan options available for as little as 10% deposit...could this be the right time for you to take the plunge?
Everyone deserves a place to call home and buying your first home gives you a sense of accomplishment and security to your life! Get started!
Getting started can be a little daunting - That’s where you need an experienced Mortgage Adviser by your side to make it easy to get your finance approved and take you through the steps to get the key to the door and continue to support for your next venture!
How Much Deposit do I Need to Save?
The rule of thumb is 20% of the purchase price however there are instances where you can have as little as 10% - there are certain restrictions so talk to your mortgage adviser to put you on the right track.
Ways to Boost Your Deposit
Saving is best of course!
It is easier if you have set a goal and budget , it sounds daunting but once you are underway can be fun and rewarding! Who else do you know wanting to achieve the same goal - do the goal setting together and keep each other on track!
Set a Goal - how much do you want to save within a time frame. Make this realistic and make sure you still are able to cover your existing expenses.
Track your Money - the best way to do this is to make a budget, be honest with what you spend and be focused. You can get a budget planner at Sorted.Org or talk to your mortgage adviser.
Increase your income and decrease your expenses - if your'e not satisfied with the amount you are saving then you need to look at ways to change this!
Here are a few starters
Get a boarder or flatmate - this can reduce your rent expenses and help you save on everyday expenses.
Look at your bank transactions each week - if you are buying meals every day you will be surprised at how much this adds up to each week - where can you reduce spending in this area?
Joining Kiwi Saver means compulsory saving and is a great way to boost your deposit.
Making a contribution from your income on a regular basis will grow this balance faster and after 3 years of contributing you may be able to withdraw some, or all of your KiwiSaver member contributions, employer contributions, returns on investments received or any member tax credits. (criteria applies and subject to change)
Check your situation to see if increasing your contribution is right for you.
Kiwi saver First Home Start Grant
Currently you can receive between $3,000 to $10,000 (criteria applies and subject to change) ask your mortgage adviser if you are eligible.
You may have a family member/s that is willing to gift you a certain amount to help get on the property ladder.
This is a family decision and independent legal advise may be required.
Welcome Home loans
Welcome Home Loans are issued by selected banks, underwritten by Housing New Zealand, and allow the bank to lend on a lower deposit without any restrictions.
For first home buyers it can mean getting on the property ladder sooner.
What will my repayments be?
Your Home Loan repayments will vary depending on how much you borrow, what interest rate you choose and the term you take your home loan over.
The Maximum term is usually 30 years - Check out the current interest rates at Interest.co and use the Calculator Tool to customise to suit your budget.
Interest rates are changeable and you can input a higher or lower loan amount and interest rate to see what effect this may have on your repayments in the future.
So what are you waiting for?
Find out more about Holly Rogers Mortgages by contacting me.