Buying your first home

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How much money can I borrow to buy a house?

It's important to know exactly how much money you can borrow before looking for your first home. This will indicate the prices of the properties you can afford.
  • For your first New Zealand home, you will typically need around 20% of the purchase price as a deposit.
     
  • A bank or mortgage broker can help you establish a realistic figure that you will be able to borrow based on the amount you have already saved and your expected future income.
     
  • You can also use an online mortgage calculator to see how different loan lengths and interest rates affect repayment amounts. Most New Zealand banks offer this functionality on their websites.
     
  • Once you've decided that you're comfortable with borrowing a certain amount, and you've found a lending organisation willing to lend to you, it is sensible to get your loan “pre-approved”. This allows you to make an offer on a house with more certainty that you’ll be able to borrow the funds required.
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