Why are we here?

Understand about the market as a first home buyer

Clarify the common myths that are out there

What affects the ability to borrow from the bank

Costs involved in first home purchase

Tips & tricks to maximise the loan approval

Common Myths
Banks require 20% deposit

Banks have unlimited funding

My bank will approve the loan because I have been banking with them

Banks only look at my income

My current loans or borrowings don’t matter

My past account conduct or credit history doesn’t matter

What is deposit and how much
Banks prefer to see at least 5% of the house purchase price coming from
the sources below.

Kiwisaver Contribution

Housing New Zealand subsidy

Money gifted by a family member

Proceeds from sale of a house or car

Deposit or savings in NZ or overseas account

Ideally banks prefer 10% deposit these days!

What impacts borrowing power
Kiwisaver Contribution

Limit of credit cards

Overtime and Commission Income

Present debts – personal loans, student loans, car loans, hire purchase

Childcare expense

Other expense – Sky City

Full time vs part time role vs self employed

Costs involved with first home purchase

Lawyer cost

Valuation Cost

LIM Report

Building Inspection

Loan Application Fee

Low Equity Fee

Tips & Tricks to maximise borrowing

Reduce or stop Kiwisaver contribution before the application

Reduce or cancel credit cards

Stop child care expense

Increase number of hours in the role

Change the bank you have your main account with before the application

Pay off existing debts – fully or partially including reducing repayments