Since October 2013, when the Reserve Bank of New Zealand (RBNZ) first introduced loan-to-value ratio restrictions (LVR), home buyers in New Zealand have been grappling with deposit requirements. LVRs play a vital role in home loan assessment and can determine how much home buyers may be able to borrow from a lender. In this comprehensive guide, find out what LVRs are and what exemptions may apply, how LVRs impact home buyers, and how to get around LVRs.
Topics: Property Investment, First Home Buyer, loan to value ratio, Low Deposit
Early signs of first home buyers heading back to the housing market are evident in recent figures* from the Reserve Bank of New Zealand, which show a 6.6 per cent increase in the number of mortgages approved for first home buyers in April 2023. This is the second month in a row that first home buyer approvals have risen, with further increases likely following the RBNZ’s easing of LVRs and the continued lower-priced market. We’ve got some tips to help first home buyers prepare to buy property in 2023.
Topics: First Home Buyer, Low Deposit, Buying and selling
According to REINZ February 2023 Property Report, the median house price in New Zealand decreased by 13.9 per cent year on year. At the same time, property website Realestate.co.nz showed 29,284 residential dwellings available for sale at the end of March, the highest number in any month of the year since November 2015. With lower house prices and less heat in the market, now may be the right time to buy a first home, with more opportunities for first home buyers.
Topics: First Home Buyer, Low Deposit, Kiwisaver withdrawal
Falling house prices in some parts of New Zealand could spell good news for first home buyers who have been struggling to save a big enough deposit to enter the property market. However, although previously locked out due to affordability, further interest rate rises and the threat of a recession could make getting finance and servicing a mortgage that much harder. Before you step onto the property ladder, here’s how to prepare for the journey ahead.
Topics: Mortgage Advisers, First Home Buyer, Low Deposit
Many clients planning to utilise some of the investment in KiwiSaver to buy their first home have seen, over last few months, a drastic reduction in the KiwiSaver investment balances. This has created a lot of attention amongst first home buyers. The purpose of this communication is to quickly and briefly explain what is happening and what may be the best course of action in the current situation.
Topics: Kiwisaver, First Home Buyer, Low Deposit, Home Loan Application, Kiwisaver withdrawal
Recent changes to KiwiBuild could help more first home buyers into the property market. Early in September 2019, Government announced a reset of the affordable housing policy including a drop in the deposit requirements for Welcome Home Loans, progressive home ownership schemes, and the removal of the earnings limit so multiple buyers could be eligible for combined HomeStart Grants.
Topics: First Home, NZ Finance, First Home Buyer, NZ Mortgage Adviser, Low Deposit, Home Loan Advice
If you’re struggling to save a deposit to buy a property, you may be wondering what your options are. Should you keep saving and potentially miss out on a bargain or optimal buying conditions in the market, or do you push ahead and apply for a mortgage with a small deposit? While it’s not easy securing a mortgage with a small deposit, it is certainly possible. Here are three ways to do this.
Topics: LMI, nz mortgage, NZ Mortgage Adviser, Low Deposit, Home Loan Advice, Low Doc Home Loan, Mortgage Advice
Earlier this year (2018), the Reserve Bank of New Zealand increased the cap from 10 to 15 per cent for banks’ lending to home buyers with a deposit of less than 20 per cent. How has this change impacted first home buyers? And what should you be doing to improve your chances of a low deposit home loan? Read on to find out.
Topics: Mortgages, Home Loan, Bad credit, NZ Mortgage Adviser, Low Deposit
