"Banks are now forced to restrict Low Deposit Home Loans with 20% deposits now preferred"
But we are still helping new home buyers or home owners looking to refinance or consolidate debts up to 90%. We even have examples right up to 95%, even 100% with the help of a small personal loan and 5% savings or a guarantor with good equity in a property. NOTE, your guarantor must always have independent legal advice and have the ability to meet your repayments if you were unable to.
Do you have 5% genuine savings plus a family member to help with the deposit? This could be in the form of an additional gifted deposit or by using their home as part security as a guarantor. Why are you waiting, you may still qualify for a Home Loan even though your Bank has said "NO". Good incomes, stable employment history, clean credit and minimal existing debts will be important. Another recent option is a deposit through vendor finance, but this is typically where a property is being sold to you by family, friends or perhaps a landlord who wishes to help out.
Here is what Jo and Craig, recent first home buyers, had to say:
Thank you so very much
Just a quick note to say thank you so much for helping us get into our first home!! We know it's your job but appreciate your patience with us "rookies" and advice. It made the whole process that much easier to deal with and understand, We hope you have a wonderful 2012 and look forward to the possibility of dealing with you in the future. Jo Rollings and Craig Fever, Auckland.
Low deposit home loans, have created the opportunity for so many first time home buyers to beat the rent trap. Why pay off your landlord's mortgage when you can be paying off your own. Owning your own home can now be cheaper than renting especially with lower floating and fixed rates especially if you are buying outside the property hot spots such as Auckland, Wellington and, Hamilton.
Are you thinking that despite having little or no genuine savings as a deposit, now is the right time to buy?
Lower interest rates have created the opportunity for many people to purchase their first property, who may have once thought they would never have a chance to own a home of their own in New Zealand. This, in addition to property investors, has led to property prices increasing by a significant amount in Auckland, especially in Auckland.
Whilst section prices have also increased, home and land packages through a Master Builder or Accredited Builder are still a viable option as they usually fall outside and the Reserve Bank Low Deposit rules for Banks. Imagine moving into your own brand new home! New Build Home Loans, Home and Land or "Turn Key" Home Loans are available from as low as 10% deposit providing you are using one of the well known building firms in the main centres.
New immigrants who spent all their money getting to New Zealand, to start afresh, and commence new careers, are now buying a home with as little as 10% deposit. In some instances, loans are even being approved without "indefinite" in the returning residency visa. Recently a loan was approved with a small gifted deposit from South Africa.
Just done your OE after getting a degree, and returning to New Zealand to start full time employment. Why rent when you could be buying a home?
If you need the full 100%, Mum and Dad, a family member or friend will need to help out. If they have no spare cash to "gift" you as a non genuine savings gifted deposit, they may be able to help out as a guarantor, or even raise funds themselves, if they own their own home or an investment property. We can quickly explain the options just email your questions to: 100% Q & A
But, if you have a 5% - 10% deposit saved, don't waste your time, come straight to the experts in low and no deposit home loans. We can even help you with advice on Life Insurance plus Health & Income cover as part of our advice process through an accredited Insurance Adviser.
There are still options to help you become a first home buyer in New Zealand with a low deposit. If you have been sitting back looking at the low interest rates and watching property prices rise over the last 12- 24 months and your Bank has been unable to assist, congratulations it could still be your time to buy!
If you think your deposit is too small or your bank does not understand your circumstances contact us right now.
Allan Nicol, South, Central and East Auckland 0800 178 728
Kim Lyons, Albany, Orewa, Silverdale, Millwater, Whangaparaoa & North 0800 699 436
If you are not in one of these specific areas such as Tauranga, Rotorua, Taupo, Palmerston North, New Plymouth, Wellington and the South Island you can contact anyone of us and it will be our pleasure to assist.
Contact us now for more information
or Freephone 0800 699436 (0800 OXYGEN)