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LOW deposit? a 'first home loan' may be just right for you...
Saving a deposit for a home can be incredibly difficult, especially with house prices being so high compared to incomes in New Zealand. Welcome Home Loans are designed specifically for people who are looking to purchase their first home, can't quite manage to save a 20% deposit - but can manage 5%.
So, what is it exactly?
A First Home Loan (previously Welcome Home Loan) allows you to borrow up to 95% of the purchase price of a property, making it much easier to get into your new home.
Let's see if you eligible for a First Home Loan
First Home Loan has the following standard criteria. Don't forget - you will also need to meet the specific lending criteria of the participating lenders too.
Firstly, you must be a New Zealand citizen or a permanent New Zealand resident (holding a 'Permanent Resident Visa'). And please note - you can't have owned property previously.
Maximum Income Limits:
Minimum deposit Requirements:
You do still need to be able to contribute a minimum 5 percent of the purchase price of the house you are wishing to buy. This can be made up of KiwiSaver savings, Homestart Grants etc (but not borrowed funds).
Maximum amount you can borrow:
The maximum amount you can borrow with a First Home Loan depends on the region you are looking to buy in. Each region has a maximum house price cap that you must be within. The maximum loan amount available is therefore the house price cap less your 5 percent deposit.
The house price caps are as follows (for existing properties):
For new properties the house caps are as follows:
If you are a first home buyer, and have been contributing to KiwiSaver for 3 or more years you may be eligible for a HomeStart Grant of up to $20,000! You can read more about this scheme here.
If you're a little bit unsure about any of the above just let us know anytime using our 'Live Chat' feature (see bottom right of screen) or contact us here.
A First Home Loan (previously Welcome Home Loan) allows you to borrow up to 95% of the purchase price of a property, making it much easier to get into your new home.
Let's see if you eligible for a First Home Loan
First Home Loan has the following standard criteria. Don't forget - you will also need to meet the specific lending criteria of the participating lenders too.
Firstly, you must be a New Zealand citizen or a permanent New Zealand resident (holding a 'Permanent Resident Visa'). And please note - you can't have owned property previously.
Maximum Income Limits:
- For one borrower you can have a maximum income of $85,000 (before tax) per annum.
- For two or more borrowers you can have a combined maximum household income of $130,000 (before tax) per annum.
Minimum deposit Requirements:
You do still need to be able to contribute a minimum 5 percent of the purchase price of the house you are wishing to buy. This can be made up of KiwiSaver savings, Homestart Grants etc (but not borrowed funds).
Maximum amount you can borrow:
The maximum amount you can borrow with a First Home Loan depends on the region you are looking to buy in. Each region has a maximum house price cap that you must be within. The maximum loan amount available is therefore the house price cap less your 5 percent deposit.
The house price caps are as follows (for existing properties):
- Auckland – $600,000
- Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $500,000
- Rest of New Zealand – $400,000.
For new properties the house caps are as follows:
- Auckland – $650,000
- Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $550,000
- Rest of New Zealand – $500,000.
If you are a first home buyer, and have been contributing to KiwiSaver for 3 or more years you may be eligible for a HomeStart Grant of up to $20,000! You can read more about this scheme here.
If you're a little bit unsure about any of the above just let us know anytime using our 'Live Chat' feature (see bottom right of screen) or contact us here.
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