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Your first home buyer FAQs answered

 

If you’re looking to buy your first home, the amount of information out there can be daunting. From figuring out how to get a mortgage to knowing what to look for at open homes, there’s a lot to learn, so we’ve put together some of the most common questions asked by first home buyers to help you out.

Can I get a home loan if I have other loans?

If you have a car loan or credit card debt, it is still possible to get a home loan, but it’s a good idea to minimise this debt as much as possible before applying. This other debt can significantly reduce the amount you are able to borrow for your first home.

I have been in overdraft – will this affect my first home loan?

It is important to ensure that your bank accounts are kept within approved limits at all times. To assess your eligibility for a home loan, lenders will want to see past bank statements to confirm your good banking history and spending/saving habits.

Do I need to have savings?

Yes, you’ll need to have savings to show the bank that you can save and manage your money. The bank will be more comfortable providing a home loan when they see that you have discipline around money. If you’ve been steadily saving for a deposit, this will help your case too.

Can I get my home loan approved before I start looking for my first home?

Yes, pre-approved finance is a good idea. Here at Haven, we can arrange for a pre-approval that will be valid for 60-90 days. This will give you confidence that you are looking for a home within the right price bracket for your personal financial situation.

What deposit do I pay to the bank?

The loan deposit that you pay to the bank is the difference between the purchase price and the loan amount; specifically, the borrower’s contribution to qualify for a loan. Depending on your situation, our mortgage team can look at getting you into your first home with as little as a 5% deposit ($5,000 per $100,000 of home value).

Will being a KiwiSaver member help me buy my first home?

If you are not currently a KiwiSaver member, we strongly suggest becoming one. After three years, you may be able to withdraw your contribution plus your employer’s contributions to help you purchase your first home. With KiwiSaver, you may also be eligible for the first-home deposit subsidy of $1,000 per year, up to a maximum of $5,000.

Who can I go to for help with a home loan?

If you’re not sure where to start to get your first home sorted, our expert Haven mortgage team can help! Just click the button below and we’ll be in touch to have a no-obligation chat, free of charge, about how you can make your first home a reality.

Want to chat about your first home?

Get in touch with us!