Buying a home at any stage in life can be a learning experience, but none more so than as a first home buyer!
There will be terminology that you are not familiar with and understanding the processes of both the purchasing and borrowing the necessary funds can be very daunting.
Mortgage Express pride themselves on walking you through your first home purchase and taking the time to explain the ‘how’ and ’why’ aspects of the transaction.
Some lenders have loans targeted at First Home Buyers and we’ll help you to determine which option is suitable for your circumstances.
Things to consider include whether you want a fixed or variable rate, whether you will be living in your first home for many years to come or if you will upgrade within a few years. You may also consider whether you will try to hold onto your first property as an investment when you upgrade. No matter what your plans are, we will develop a strategy that will get you on the right path.
As a first home buyer, you may also be considering a guarantee arrangement with a partner or relative to assist with the purchase. Guarantees are where another person’s property or assets are used to secure your loan. These arrangements are common but it is very important to set them up correctly and in a manner that will suit your short, medium and long term goals of property ownership. Of course, we can help you with this.
Source: Mortgage Express Website
More than 15,000 New Zealanders have used their KiwiSaver account to turn their goal of owning a home into reality. Could you be next?
First Home Buyer Withdrawal
After being a member of KiwiSaver for three years you can apply to withdraw all or part of KiwiSaver savings (however you must leave a minimum balance of $1,000 plus any amount transferred from an Australian superannuation fund in your KiwiSaver account) and use it towards the purchase price of your first home.
Are You Eligible?
You are eligible for a first home withdrawal if you:
If you have owned a property or land before and your financial position is considered the same as a first home buyer you may be able to apply to Housing New Zealand to be considered for a withdrawal as a 'second chance' home buyer. Visit Housing New Zealand's website for more information.
Source: Fisher Funds NZ
KiwiSaver is a voluntary, work-based savings initiative to help you with your long-term saving for retirement. It has a range of membership benefits including contributions from your employer and the Government, as well as help with buying your first home.
KiwiSaver has two features to help you buy your first home:
The KiwiSaver HomeStart grant provides eligible first-home buyers with a grant of up to $5,000 for individuals and up to $10,000 where there are two or more eligible buyers to put towards the purchase of an existing/older home.
In addition, the KiwiSaver HomeStart grant also provides eligible first-home buyers with a grant of up to $10,000 for individuals and up to $20,000, where there are two or more eligible buyers to help with the costs of purchasing a brand new home.
Applying for both the KiwiSaver HomeStart Grant and the KiwiSaver Savings Withdrawal Determination as a previous home owner
Recently, KiwiSaver legislation was amended to allow a greater number of KiwiSaver members, who had previously owned property, but no longer did so, to access their funds to buy property. This has resulted in a change to how some members should apply for the KiwiSaver HomeStart grant and the KiwiSaver savings withdrawal determination.
Source: Housing New Zealand