Home loans for first-time home buyers in New Zealand

Buying your first home in New Zealand? The good news is there are several options and schemes to help make homeownership more accessible. Understanding these options, preparing your finances, and seeking expert advice can make the process smoother and help you secure the best possible mortgage for you.

Before you apply for a first home loan

Getting your finances in order is crucial before applying for a mortgage. Here are some key steps to take:

• Pay Off Existing Debt First – Reducing debt improves your borrowing power and makes loan approval easier.

• Save as Much as You Can – The more you can put toward your deposit, the better your loan terms may be.

• Check Your Credit Score – A good credit history increases your chances of getting approved. If there are any issues, address them before applying.
  

How much can you borrow for a first home loan?

The amount you can borrow depends on factors like your income, existing debt, and the size of your deposit. Most lenders require a minimum 20% deposit, but some government-backed schemes allow for a lower amount. Take a look at our success story for Parth and Juhi, happy first-home buyers who started with just a 5% deposit. 

A mortgage advisor can help you understand your borrowing power and explore your best options.

First-Home Buyer Support Schemes

• First Home Loans – Offered by selected lenders and backed by Kāinga Ora, these allow eligible first-home buyers to get a mortgage with just a 5% deposit. However, income caps and price limits apply.

• KiwiSaver First-Home Withdrawal – You can use your KiwiSaver savings (excluding the government's $1,000 kick-start) to help with your deposit. This can be a significant boost towards homeownership.
  

Other Costs to Consider

Beyond the deposit and mortgage repayments, first-home buyers need to budget for additional costs, including:

• Legal fees

• LIM reports

• Building inspections

• Potential renovation costs

Get Expert Help

Navigating the home loan process can be complex, but a mortgage advisor can help simplify it. They can assess your financial situation, explore different lenders, and guide you through applications to secure the best deal for your circumstances.

Ready to Take the First Step?

Buying your first home is an exciting milestone; with the right planning and support, you can make it happen. Need expert guidance? Get in touch today, and we'll help you secure the best mortgage for your first home.