First home mortgage? Here are 3 strategies to help get you into your first home
February 01, 2015 at 2:12 PM
Auckland, North Shore: Mortgages — Kiwis on low or, importantly, fixed incomes, may be able take advantage of three Government schemes to help get them into their first home, by lumping all three together.
1. KiwiSaver HomeStart grant, for first home buyers
KiwiSaver HomeStart provides up to $10,000 via an application through Housing New Zealand. Usually this product applies to individuals who belong to a KiwiSaver scheme and earn less than $80,000 in the last year, or less than $120,000 for couples.
Other conditions apply. Visit the Housing New Zealand website here for more information.
2. KiwiSaver first-home withdrawal, for first home buyers
The KiwiSaver first-home withdrawal essentially allows you to withdraw your KiwiSaver savings to help fund your house deposit, and is facilitated by an application through your KiwiSaver provider. Even Government contributions to your KiwiSaver – with the exception of the $1,000 kick-start you received when you first joined – can be put towards your first home (as of 1 April 2015).
To qualify you must have contributed to your KiwiSaver for at least three years and it must be for a property you are going to live in. Other conditions apply. For more information, visit the Government’s KiwiSaver website here.
3. Welcome Home Loans, for first home buyers
A Welcome Home Loan is a low deposit home loan that is available from various lenders who are participating in the scheme, and requires a 10 per cent deposit or more (although two or more borrowers can team up to purchase a home (which is good for extended families).
House caps do apply, though. For example, the house cap in Auckland is $500,000 and between $350,000 and $450,000 throughout the rest of New Zealand, depending on the region. You must be buying the home to live-in and have earned less than $80,000 in the last 12 months ($120,000 or less if more than one borrower). Other conditions apply. For more information, visit the Welcome Home Loan website here.
Bringing them all together
Combining the three government products may turn into a big enough deposit to make getting a mortgage easier (note that people who may previously have owned their own homes, but no longer do, might also be eligible to apply for these government products).
To find out how to combine all three Government home loan products together to help get you into your first home, talk to us here at LoanPlan. We would be happy to discuss your situation through with you, and to help you make sure that you have the best strategy for your individual circumstances moving forward.