Are You Eligible for First Home Buyers Loan in New Zealand?

Homeownership can be challenging, especially when you are buying your first home. Buying your first home takes careful planning, research, and serious budgeting to meet certain financial and legal criteria. It is often the biggest financial decision one will make in his entire life, and with the right help and mortgage assistance, it is not impossible.

When you are planning to buy your first home, there are several lending options available to fulfill your dream of homeownership. Understanding how the whole process works and what are specific lending criteria for your specific situation is the key to planning successfully for the total cost of home buying. Saving for a house deposit should be your first step in order to get your first home buyer’s loan in NZ. These days, you can be eligible to borrow with a deposit of just 10% in some cases. The lower deposits come with bigger risks for both lenders and borrowers, however, it can help you get a mortgage with a little saving.

Meeting the lending criteria is the key to sorting your finances in the first place. You will need to save for a deposit and sufficient income to be eligible and financially able to make monthly repayments. The CCCF criteria is hindering a lot of the first home buyers in getting over the line. The Lenders now have a responsibility to ensure every expense is taken into consideration when assessing an application. Costs such as gym fees, streaming costs, spending on takeaways and alcohol, regular purchases of Lotto etc are now factored into Debt Servicing. We can guide you prepare for a home loan well in advance so that you don’t get caught with unnecessary expenses.

For Home Loans with low deposit, you will also need to meet the specific lending criteria defined by your lender or bank for first home buyers’ loans in NZ. The lending criteria of your lender may also include your credit history, level of debt, and ability to repay the loan. The criteria are listed below that you need to meet additionally to be eligible for a first home loan in New Zealand:

• You must live in the home for which you are getting your first home loan.
• Borrowers also need to pay a Mortgage Insurance (LMI) premium of the loan account.
• You must be a New Zealand citizen, permanent resident, or a resident visa holder to be eligible for a home loan in New Zealand.
• The applicant should be a minimum of 18 years of age.

Each region has a house price cap, and the maximum loan amount you can borrow depends on where you are purchasing your first home. At Mortgage Suite, we can help you check your eligibility and apply for a first home buyers loan in NZ as per your specific situation. Contact us for more details.