Mar 13, 2020 9:00:00 AM

Buying a home with a new baby on the way

Topics: Buying, Growing family, Buying a home in NZ, Bigger home 1

A new arrival in the family means some big changes ahead for your finances. In fact, a growing family is one of the top reasons people choose to buy a new home. During this challenging and often stressful time, it’s easy to forget some of the important things you should be considering when buying a home with a new baby on the way. Take a look at 3 things you should be thinking about.

Buying a home with a new baby

1. Change in income
Having a baby will mean taking some time off from work and a likely drop in your income for the family. So plan ahead: start by looking at your household income and expenses and work on a budget.

Determine if there’s any room over the next few months to set aside some savings that could be used to cover your loss in income. Work towards getting debt-free and clearing any high interest debt like credit cards or hire purchase. Find out if you qualify for any paid parental leave which could go towards your loss of income.

If you’re applying for a home loan at this time, your lender will want to know that your income can cover your mortgage repayments and your living expenses.

2. Consider the future
Babies may not take up a lot of room to begin with, but when buying a new home it’s important to look ahead to your future needs. Some things to think about include:

• How many bedrooms do you need now and in the years ahead?
• Is the layout of the bedrooms important? Does your room need to be near your baby’s room?
• Consider potential hazards like stairs without railings or a pool in the back garden – can these be baby-proofed?
• Is outdoor space important to you and your family? Does your new home need to have a garden?
• While you may think you have years to go, finding the right schooling in the area you’re buying into is an important consideration. What are the neighbourhood schools like? Are they within walking distance?
• What about green spaces or parks nearby?
• Storage space is another important consideration to factor in when looking for a new home – space to house sporting equipment, bicycles and toys.

3. Location should be top of mind
When it comes to finding a good family home, location should be one of your top priorities. Not only do you want to consider the schooling in your area, but the type of street you’d be living on is just as important. A quieter street – a cul-de-sac or a property backing onto a reserve – may be a lot safer than a main road with heavy peak hour traffic.

The type of lifestyle you lead is a deciding factor too – would you prefer your family live close to a large city or a small town? There are no right or wrong choices – just what works best for you.

There’s a great deal to think about when deciding on the type of property you want to buy as your family home, as well as the financial implication that comes with having a new baby. To find out more about securing a mortgage when you’re having a baby, contact a Mortgage Express adviser today.


The information contained in this article was prepared by Mortgage Express Limited. While every care has been taken to supply accurate information, errors and omissions may occur. Accordingly, Mortgage Express Limited accepts no responsibility for any loss caused as a result of any person relying on the information supplied in this article.
This article does not constitute regulated financial advice to retail clients. It may not be relevant to individual circumstances. Nothing in this article 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 article.
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