First home buyers navigating New Zealand’s fast-paced property market often face a myriad of questions and challenges that go along with this significant milestone. Drawing on insight and inspiration from experienced mortgage advisers can help empower first home buyers to make informed decisions about their own home ownership goals. Read on as we share essential tips and inspiring success stories from Mortgage Express branded mortgage advisers.

Treveen’s tips for first home buyers in New Zealand

Understand what goes into your deposit

Your deposit can include:

• Your own personal savings
• KiwiSaver Withdrawal
• First Home Grant
• Cash gift from family

Get clear on your income and expenses

• Carry as little short-term debt as possible, by paying down car loans, student loans and credit card debt.
• Order your credit report, check your credit score and address any potential issues. This is the first place the lender will look to see how credit-worthy you are and a negative score could be seen as a red flag.
• Regularly assess your income and expenses, ideally on a weekly or bi-daily basis.
• Stick to your budget and closely track your spending. The lender will check your bank statements to see how well you manage your finances.
• Minimise unnecessary expenses and avoid Lay buy, Afterpay, ZIP, etc.
• Work hard at saving – especially large purchases – rather than relying on credit. Not only does it help cultivate healthy saving habits and strong financial discipline, but it also shows the lender that you prioritise spending within your means.

Know what factors can impact your application

Here are some things to focus on during your home loan application:

• Avoid any large purchases e.g. a new car!
• Pay close attention to your everyday spending – avoid going into overdraft or adding too much debt onto your credit card.
• Maintain separate savings accounts, one dedicated to house savings and another for
• day-to-day expenses. Aim to save the difference between your current rent and your proposed mortgage, rates and insurance.
• Steady employment can bolster your mortgage application so avoid changing jobs too often.
• Expect moments of stress but stay focused on your ultimate goal of home ownership.
• Remember to include in your budget the additional costs you’ll be required to pay once you find a home you want to buy, such as a building inspection report, LIM report, registered valuation, and lawyer’s fees.
• Consider getting quotes for home insurance and life insurance as you’ll need to get these if you have none in place already. 

Jann’s advice for first home buyers

There’s no greater pleasure than helping a client get into their first home, especially after their bank has said no to them!

• Expect changes to home lending and interest rates with a new Government.
• Check if you’re eligible for Government assistance – this can be a real deal breaker for first home buyers. You may be able to buy your first home with as little as 5% deposit.
• Work with a mortgage adviser because:

Work with a mortgage adviser because:

• We have access to the majority of banks' lending calculators so can tell you which bank will lend you the most.
• We have knowledge across a majority of banks so will find the right home loan deal for your circumstances.
• We work with you one-on-one in the comfort of your own home during the day or after hours.
• We have a wealth of expertise and we’re experienced at finding home loan solutions for first home buyers.
• We’re located around the country so chances are there’s a mortgage adviser near you.
• Our advice is generally free to you as we get paid by the lender once your home loan is finalised. We will inform you and seek your prior approval if we charge you a fee for service.

Inspiring success stories from Mortgage Express

“A first home buyer had pre-approval from a bank and, after finding a property and submitting an offer, discovered that the bank would not accept the security and their application was turned down.

The buyer approached me for assistance. They had a 10% deposit and security but with unconsented work on the property, it was a challenge. The vendor would not negotiate any further and clients lacked the funds to rectify the issue.

Nonetheless, I managed to successfully secure approval and complete the loan.”

~ Nikki Kapadia

“A young couple with 3 children called me as their landlord had offered to sell them the home they were renting. Both had never owned a home before and neither had their respective families. The home was a bit run down and there were some questions around insurance. The client got a builder friend and some other mates in and cleaned up property, and once the repairs done got a builder’s report. Fortunately, there ended up being nothing major to fix.

Clients signed a private sale and purchase agreement and 3 months later completed the sale with a new RVR that was $110k above the purchase price! New LVR was 70% and financing was done with a non-bank lender. Clients were understandably over the moon!”

~ Grant Ranger

For more first home buyer advice, contact Mortgage Express today and connect with a mortgage adviser near you.