Getting a Low Deposit Home Loan is achievable if you have the right information!
-Make Sure you Are Eligible!
-Have Evidence of your Deposit so there are no surprises!
-Be Realistic with Price!
Tip 1: Make sure you are Eligible!
-First Home Buyer / Upgrading / Building - Owner Occupied
You must intend to live in the property
-NZ citizen or Permanent NZ Residents
Resident visa's often have travel restrictions which may not qualify
-Permanent Income - 12 months with current employer or in the same industry
Your base income off your work contract will be used for the assessment - overtime and casual hours could be considered but not relied upon
-Self Employment - Applicant must produce the last 2 years financial statements
-Satisfactory Credit Check
-Satisfactory Account conduct - Statements will be requested
adverse conduct includes Dishonours, Un arranged overdraft, late payment fees
Tip 2: Have evidence of your Deposit funds!
Your Deposit 10% can include:
Genuine Savings - 3 months Bank Statements
KiwiSaver - Letter from your provider confirming eligibility with withdraw and amount
HomeStart Grant - Pre-approval from Housing NZ
Gifting - confirmation of Gifted amount
Other -Parents Guarantee, Sale of Asset, Deed of Debt
Tip 3: Be Realistic!
There are many variables that determine how much you can borrow and everyones budget is different and every Banks assessment is different. The main assessment is Income vs Outgoings and the more you have left over after paying your Home Loan and outgoings, the more likely the Bank will approve. So reduce your consumer debt including visa card limits to be in the best position for a realistic Home Loan
There are extra costs in owning a home so talk to your Mortgage Adviser to find out what price tag is relevant to your budget
If you are eligible for the HomeStart grant then your Purchase Price is capped:
$500,000 for an existing property
$550,000 for a new property
There are costs to consider as well:
Registered Valuation cost + Builders report if required
Up to 1% loan fee or interest rate margin
To get the best way forward, talk to your Mortgage Adviser or contact Holly Rogers for your free consultation!