The New Zealand property market is booming, despite economists’ doom-and-gloom predictions earlier this year. Historically low interest rates, the removal of loan-to-value restrictions, and more New Zealanders returning home from overseas because of COVID-19 has seen a growing number of first home buyers entering the market. If you’re considering applying for a mortgage at this time, here are some things you can do to prepare yourself.

1. Eliminate the emotion

As quite possibly the largest purchase you’ll ever make and a significant life event, it’s understandable that buying a first home is incredibly emotional. Not having a clear understanding of the home buying process and the intricacies involved leads to confusion and stress, fuelling an already emotional time.

Eliminate the emotion by being prepared. Do your research, visit open homes and attend auctions before you buy, and work with a knowledgeable mortgage adviser who can guide you through the home buying process and ensure you understand every step of the way. 

2. Know how much you have to spend

A fundamental part of the home buying process is knowing how much you have to spend. A mortgage adviser can help you determine whether or not you’ll qualify for lending approval and how much you may be able to borrow. Securing a mortgage pre-approval could help speed up the home buying process and be a significant bargaining tool when you find a home you want to buy, so discuss your options with your mortgage adviser to see if you qualify for pre-approval.

3. Determine your priorities

Every first home buyer dreams of finding the right home in the right area for the right price. But once you start searching, you quickly realise you may have to settle for something slightly less than perfect.  

Before you head out to search for a home, set out your priorities to determine what is most important to you in a first home. Things like:

• Location
• Parking
• A garden
• Access to public transport
• Condition of the home
• And finally, price

4. Narrow it down 

To help you evaluate each of the properties you view, create a checklist of your priorities that you can take along with you when shopping for a home. A checklist will help you stay focused on the most important attributes you’re looking for, and can be used as a measure to compare homes and eventually narrow down your choice. Score each of the key features of the home to calculate a total for each home you view. The objective is to find the home that most fits your priorities with the highest score.

5. Go out and buy your home

Now that you know a little more about to buying a first home, you’re ready to take the next step. Contact Mortgage Express to find an adviser in your area. Our advisers are ready and waiting to help you simplify your finances and find the right home loan to fit your budget and lifestyle.

For more tips and advice around managing your money, consolidating your debts, or applying for finance, follow Mortgage Express on Facebook and Twitter, or contact one of our mortgage advisers.

Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.

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