First Home Buyer Specialists

First Home Buyer help

I want my first home

Buying your first home is probably the biggest investment you will have made so far and can appear a daunting task. Maria Thackwell Mortgage Company is here to guide you and help you make good decisions for this long-term borrowing. There are many aspects to be considered that will help identify the best financial solution to suit your needs.

 First Home Buyers FAQs.

  • As a First Home Buyer you are typically able to use your KiwiSaver funds for a deposit. You may also be eligible for a First Home Loan underwritten by Kāinga Ora. Also, from time to time banks may offer additional incentives for First Home Buyers.

  • The recent changes in the First Home Loan product that has reduced the minimum deposit from 10% to 5% has made getting into your first home easier than it has been for a long time. There are many ways you can raise the funds necessary for a deposit (e.g. KiwiSaver, sale of assets, savings, and support from friends and family).

  • Friends and family can gift or lend you funds for your deposit or alternatively act as guarantor, utilising the equity in their own properties as security.

  • The guarantor uses their own property to secure a portion of the lending you require. This typically means they are joint borrowers for their portion of your loan. If you default on your payments, any guarantor will become liable to meet your obligations for their portion of the lending.

  • If you choose to build your first home you will get all the benefits as if purchasing an existing property however there may be different affordability criteria. You are best to discuss this option with us.

  • Lenders need to be reassured that you can sustain your repayments, because in the worst case, a property may take some time to sell. If the bank had to sell the property to repay the loan, maybe at less than its true value, you could lose equity in the property (your deposit) making it much more difficult to repurchase in the future.

  • As a borrower, your lender will be looking to see that you manage your money well. They have access to all your financial information when they perform their credit check. So, you need to prove you have good habits e.g staying in credit, not exceeding your current approved credit limits, all current debt arrangements and monthly expense bills need to have been paid on time (electricity, phone) and evidence that you are not sustaining long-term overdrawn balances (despite having an agreed overdraft facility). Demonstrating you can save, outside of your KiwiSaver, is an excellent step in the right direction. It shows you can comfortably live within your means.