Buying your first home

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We want to own our own home. Where do we start?

The first major hurdle on the path to home ownership is working out how big a deposit you’ll need and then saving for it.  New Zealand banking regulations specify maximum percentage amounts that lenders can advance to home buyers, to reduce the risk of financial hardships and defaults if property prices fall.  Any difference between the property purchase price and the advance will be the deposit needed.

Whilst these percentages move around at times, you should aim to have a 15% to 20% minimum deposit to buy your own home. When buying a home for the first time, follow the helpful advice below:
  • Calculate how much you can realistically afford to borrow, and how any debt servicing requirements / rates will allow you to live reasonably comfortably.
  • Consult a financial advisor, friend, or family member who has bought property before. Seek out as much advice as possible.
  • Don’t financially over-commit when buying your first home. A bank or lending institution may be willing to lend you a larger amount, but you should not necessarily take the offer. Know your budget and stick to it.
  • Ensure that you have financial reserves to cover things like legal costs, moving in (and out costs), unexpected repairs and maintenance etc. 
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