You’ve studied hard for many years and, to get there, you borrowed on your Student Loan for courses, books, and some money to live on. Now you have a deposit for a house … and a Student Loan of four times that! How is your Student Loan going to affect your chances of getting a mortgage?
We have previously addressed this topic in our article “5 Creative Ways to Get into Your First Home” which was published on our blog last year. Since then, we have noticed that this topic has been in the media and it appears that first home buyers (“FHBs”) raise concerns about this option being too restrictive or complicated. It also appears from social media posts that there is a major lack of understanding when it comes to the current Bright-line rules. Generally, there is also a lack of knowledge in relation to how a property sharing agreement (“PSA”) can make a group purchase less complicated.
When reviewing a home loan application, banks consider a variety of factors to calculate affordability. However, all factors considered, it can be summarized into this simplified equation:
So, let’s look at these 4 components in more detail to understand what you can do to put your best foot forward when applying for a home loan, and identify any hurdles you may need to overcome.
Schnauer & Co Lawyers covered the various changes to the current ADLS Agreement of Sale and Purchase of Real Estate (Eleventh Edition) 2022, in our article “Legal Toolkit: Expert Tips for First Home Buyers – Part 2”.
The team at Schnauer & Co's have put together a resource toolkit to highlight some of the common misconceptions that some first home buyers have and provide you with tips on how to avoid some easy mistakes when buying your first home. Our expert tips will be presented over six easy to read articles, and they are all designed to help you achieve your goal of homeownership in NZ.
Launched in 2017, KiwiBuild set out with an ambitious goal of delivering 100,000 affordable homes for first home buyers. Since its inception, the program has encountered challenges and its critics along the way. However, there have been noteworthy positive changes made to the KiwiBuild initiative, which this article aims to cover comprehensively. This article will provide you with all the essential information you need to know about KiwiBuild and its current status.
DISCLAIMER: This information is not intended as financial advice or a recommendation. It does not take into account your individual needs or financial situation. We recommend you always seek independent legal and financial advice.
There’s a misconception that having at least a 20% deposit is the only option for a First Home Buyer. Whereas, the amount of deposit needed to buy a house in New Zealand can be from as low as 5% ... enabling First Home Buyers to pursue their dream of owning a property by using low deposit home loans.
Buying your first home can be an exciting, yet daunting, prospect. One of the biggest hurdles to overcome is the deposit required to secure a mortgage. For many Kiwis, being able to make a one-off withdrawal from their KiwiSaver for a home deposit enables them to reach their home-buying dreams.
Whether you’re a first home buyer or already a property owner, we’ve all been nervously watching interest rates continue to rise through 2023. And now with last week’s OCR rise of another 50 basis points … if only we had a crystal ball to know the impact this is going to have on home loan interest rates going forward, and whether it’s a good time for first-home buyers to dive into the property market.
This article was written April 2023.