The first step before you can go house shopping is to get your finances pre-approved. This means looking at your savings, combined income and current debt, then chat to a mortgage adviser to see how much you can borrow. If you don’t get preapproved for the amount you are hoping for, perhaps spend a bit longer boosting up your savings and trying again.
Are there any Home Buying Assistance Programs Available for First Home Buyers?
Yes! The New Zealand government offers programs such as a Welcome Home loan, using your KiwiSaver as part of your deposit, special breaks in LVR for those buying in certain areas, and the HomeStart grant for those who qualify.
What Deposit do I Need?
iLender offers the lowest deposit option at 10% – half of what other lenders and banks require.
Can I Get a Home Loan Even if I Have Bad Credit?
Yes you probably can. Even if you have been rejected by a bank or nonbank lender, get in touch with iLender and we will help you see if you qualify for a mortgage.
What other Costs Are There in Addition to a Deposit?
You’ll also need to pay a solicitor for their advice, checking the title, and conveying the property. This can range between about $700-$2000.
A builder’s report, to make sure you know exactly what the status of the house is. This is often between $500-$1000
Registered valuation of the property -- approximately $500-$700
A Land Information Memorandum (LIM) report -- about $300-$400
What is the Difference between Interest-Only and Interest-Principle Mortgage Structure?
Paying interest-only repayments can mean a bit more cash in hand and lower payments. However, it will also mean you’ll be paying off your mortgage for longer and end up paying more interest overall. Principle-interest structures, like table structures, allow you to pay off the amount you initially borrowed so your interest payments decrease over time.