First Home Buyers Club Blog

Schnauer & Co have previously addressed this in article “Breaking down the sale and purchase agreement” back in 2018. However, there have been many changes to the agreement since then.  We are currently up to the eleventh edition 2022 (3) of the ADLS/REINZ Agreement for Sale and Purchase. It is best for you to use this form when making an offer by negotiation or, if the sale is by way of an auction, ADLS/REINZ have produced a separate agreement for auctions (the Sixth Edition 2022 (2)). If you are attending an auction then we recommend that you refer to our article “Purchasing A Property At Auction”.  

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.  

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.

What does it take to get a low deposit loan?

One of the top questions we get from first home buyers is "How much deposit do I need?" The answer is entirely dependent on your situation, if you have favourable circumstances, a low deposit loan could be possible.

Low Deposit Home Loan Versus Co-Ownership Home Loan With YouOwn

The challenge of putting together a deposit for your first home is a daunting one.  With the house prices where they are it can seem like an impossible task to get to a target of around 20%.