Buying Your First Home

The key to NZHL’s smart home loan structure lies in what we call channelling. This is where your income and savings are channelled through your home loan account to reduce your daily interest costs.

First home buyers need a deposit of at least 5%, with 20% or more being the optimum. Remember that this can be made up from a KiwiSaver first home withdrawal, and some first home buyers may also be eligible for a Kainga Ora First Home Loan.

As well as a deposit, below is some guidance on other costs to consider:

• Legal fees – these can vary depending on how complicated the sale and purchase process is.
• Builder’s report – fees vary, shop around but ensure you’ve got someone reputable.
• LIM report – usually between $200 and $400 although some sellers may provide this information up front to buyers.
• Registered valuation – a valuation may be required in order to confirm your finance, expect to pay extra for this.
• Moving costs.

KiwiSaver advise that in order to withdraw from your KiwiSaver account you must:

• Be purchasing your first home;
• Have been a member of KiwiSaver for a minimum of three years;
• Have your KiwiSaver account with a KiwiSaver provider that allows saving withdrawals;
• Intend to live in the property for at least six months

We recommend that you contact your KiwiSaver provider and check their individual policy on withdrawals for first homes. If you are eligible to withdraw money from your KiwiSaver, you may also be eligible for a first home grant of up to $10,000 per person from Kainga Ora.

Generally speaking the bigger your deposit the better, as this can effect your interest rate and other fees. Not to mention the lifespan of your loan.
That said everyone has to start somewhere – so your best bet is to get in touch with an NZHL consultant today.