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Buying your first home

How much deposit do I need?
There is a lot of publicity about 20% deposit being needed but in many cases you can get away with less than that. It could be as little as 5% (plus 1% GHovernment underwrite fee)or even less if you have a guarantor
Can I get a Home start grant?
These have now been renamed as "First Home Grants".

Just like First Home Withdrawal if you have been contributing the minimum to your KiwiSaver for at least 3 years you may be eligible for a First Home Grant.

This is $1,000 for each year you meet the criteria for 3 to 5 years which means a grant of $3-$5,000 each for an existing house and double that for a new build (bult within the previous 6 months may qualify).

So a couple could potentially get up to $20,000 and up to 4 borrowers in a family can pool their KiwiSaver and First Home Grants together, up to $40,000

Income caps apply and regional price caps apply
What about Welcome Home loans?
These are now called "First Home Loans".

When a bank lends over 80% of a home value they take a higher risk.

With these loans you only need 10% deposit - reduced now to 5% deposit - and the bank will lend the remaining 90% or 95%.(including the 1% underwrite fee) This is known as "high lvr lending".

Because this is seen as higher risk lending the government runs a guarantee scheme to compensate the bank if they have losses from this lending.

Income caps apply, just increased to $95,000 per anum for 1 borrower or $150,000 per annum for a couple.

Please note this income includes KiwiSaver returns so even if your PAYE income is just below this the KiwiSaver returns might tip it over. 
Book an online meeting
What interest rates and repayments can I get?
If you look at bank websites you will see standard interest rates and "special" interest rates.

These special rates are the ones you want currently around 2..29% or so.

The trouble is they are mostly reserved for those with 20% deposit although some lenders who are in the First Home Loan scheme will allow special rates for these loans even though you mght only have 5% or 10% deposit.

If you don't have 20% deposit and/or you don't qualify for "First Home Loans" then you might not be able to get special rates. Worse than that they might add a margin on top for low deposit lending.

So instead of 2.29% you might be offered somewhere around 2.54 to 3.04% 

Worse than that, you  might be stuck with a higher rate until you have 20% equity. It's very important to talk to us early to get the best option for you.
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Does it matter where I buy?
If you want to use First Home Loans or First Home Grants then yes it does matter.

There are regional price caps so in Auckland for instance if you buy a new build home you can buy at up to $700,000 but if you buy an older house out in the country somewhere you might only be able to buy up to $400,000

You can check your area at this link
Can I use my KiwiSaver?
If you have been a member of KiwiSaver AND contributing at least the minimum amount for at least 3 years you may be eligible to with draw all except $1,000 to put towards your first home.

There is also the "second chance" option which lets you withdraw to put towards your home even if you have owned one before.

There are no price caps on KiwiSaver First Home withdrawal unlike "First Home Loans" and "First Home Grants"
If I have no KiwiSaver what can I do?
You don't have to have KiwiSaver and you might not have to have 20% deposit.

Normal bank lending criteria apply which includes low deposit lending for strong proposals.

If you have family with property who are willing to help there are also some guaranotor options.
What interest rates and repayments can I get?
If you look at bank websites you will see standard interest rates and "special" interest rates.

These special rates are the ones you want currently around 2..29% or so.

The trouble is they are mostly reserved for those with 20% deposit although some lenders who are in the First Home Loan scheme will allow special rates for these loans even though you mght only have 5% or 10% deposit.

If you don't have 20% deposit and/or you don't qualify for "First Home Loans" then you might not be able to get special rates. Worse than that they might add a margin on top for low deposit lending.

So instead of 2.29% you might be offered somewhere around 2.54 to 3.04% 

Worse than that, you  might be stuck with a higher rate until you have 20% equity. It's very important to talk to us early to get the best option for you.
Does it matter where I buy?
If you want to use First Home Loans or First Home Grants then yes it does matter.

There are regional price caps so in Auckland for instance if you buy a new build home you can buy at up to $700,000 but if you buy an older house out in the country somewhere you might only be able to buy up to $400,000

You can check your area at this link
Can I use my KiwiSaver?
If you have been a member of KiwiSaver AND contributing at least the minimum amount for at least 3 years you may be eligible to with draw all except $1,000 to put towards your first home.

There is also the "second chance" option which lets you withdraw to put towards your home even if you have owned one before.

There are no price caps on KiwiSaver First Home withdrawal unlike "First Home Loans" and "First Home Grants"
If I have no KiwiSaver what can I do?
You don't have to have KiwiSaver and you might not have to have 20% deposit.

Normal bank lending criteria apply which includes low deposit lending for strong proposals.

If you have family with property who are willing to help there are also some guaranotor options.
Book an online meeting

Mortgage Mart NZ Ltd has been granted a license by Financial Markets Authority as a Financial Advice Provider and provides specialist Mortgage and Insurance advice as well as limited advice on KiwiSaver and managed investments We are physically located in Auckland and in Whakatane but serve businesses and families throughout the country. Our disclosure information is located HERE

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