Buying your first home is a major financial decision, and understanding the available support can make the process easier to plan. First home buyers in New Zealand may have access to different options depending on their income, deposit, KiwiSaver balance and financial circumstances.
It is also important to understand your mortgage options early, as this can help you set a realistic budget before you start looking at properties.
What Benefits Can First Home Buyers Get?
There is no single benefit that applies to every first home buyer. Depending on your circumstances, you may be able to use your KiwiSaver savings towards your first home and may qualify for lending options designed for buyers with smaller deposits.
Your eligibility will depend on the current rules and your individual financial position.
The first home owner services from Better Choice can help you understand the home loan options that may be available for your situation.
Can You Use KiwiSaver for Your First Home?
If you have been contributing to KiwiSaver, you may be able to withdraw most of your savings to help purchase your first home, provided you meet the relevant eligibility requirements.
This can make a significant difference to your available deposit.
Before making an offer, it is worth checking how much you may be able to withdraw and whether you meet the current KiwiSaver first-home withdrawal requirements.
Do You Need a 20% Deposit?
A 20% deposit is often used as a standard benchmark for home lending, but it does not necessarily mean every first home buyer needs exactly 20%.
Some lenders may consider applications with smaller deposits, depending on the borrower's circumstances and the lender's current criteria.
A smaller deposit can mean borrowing more, so it is important to consider both the upfront deposit and the repayments you will need to manage over time.
What Should First Home Buyers Budget For?
Your deposit is only one part of the cost of buying a home. You should also allow for expenses such as:
- Legal and conveyancing costs
- Building or property inspections
- Valuation fees, where required
- Moving costs
- Insurance
- Rates and ongoing home ownership costs
- Potential repairs and maintenance
Understanding these costs before you start searching can help you avoid setting a property budget that is higher than you can comfortably afford.
How Can a Mortgage Broker Help First Home Buyers?
A mortgage broker can help you understand different lending options and compare loan structures based on your circumstances.
For buyers in Auckland, speaking with a mortgage broker in Auckland can help you understand what lenders may look for when assessing your application.
A broker can discuss your income, deposit, existing debts and borrowing position before you make an offer on a property.
What Should You Do Before Looking at Properties?
Before attending open homes, it can be useful to:
- Work out how much deposit you have available.
- Check whether you can use KiwiSaver towards your purchase.
- Review your income and existing debts.
- Estimate your ongoing mortgage repayments.
- Allow for buying and home ownership costs.
- Understand your potential borrowing range.
Getting these numbers clear early can make your property search more focused and help you avoid looking at homes outside your realistic budget.
Get Help With Your First Home Purchase
Buying your first home can involve several financial decisions, from working out your deposit to choosing a suitable home loan.
If you are unsure about your borrowing options, Better Choice Financial Advisors can help you understand the available mortgage options and guide you through the application process.
Whether you are buying your first home in Auckland or elsewhere in New Zealand, getting your finances organised before making an offer can help you approach the process with greater confidence.
