Get your accounts in order
Banks are tightening their lending and are scrutinising your accounts. This means you need to have a good explanation for all of your spending. Having a budget set up is a great way to demonstrate your incomings and outgoings each month. Depending on how much you want to borrow, you need to demonstrate that you can afford the mortgage payments each week – this can be done by saving the extra mortgage amount on top of the rent you are currently paying.
Consider other options
The new rules in place make it harder for low deposit lending on existing homes. You should consider other options, like off-the-plan and new-build properties to get yourself on the ladder. Because these types of properties are exempt from the new rules it may be easier to sort out a loan with a smaller deposit.
Get your KiwiSaver sorted
Depending on what sort of fund you’re in and how long you’ve been contributing, you might be able to use your KiwiSaver to help you with your first home purchase. If you’re planning on doing this, speak to an adviser as they can walk you through the process of using your KiwiSaver for your first home.
Take a look at your credit history
Make sure you’re aware of any problems on your credit report so you can remedy them before you start applying for a mortgage. Checking your report also means you are prepared to provide an explanation for why you may have missed past payments and why it will not be an issue for your mortgage.
Get some advice
Mortgage advisers can help you get the best interest rates and walk you through the process of getting pre-approval. It can often feel overwhelming, so having someone to guide you will help ease your stress during the process. They can provide support while you get your paperwork sorted and give expert advice for each lender.
Preparing to buy your first home? Get in touch with our mortgage team today.
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