"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 where clients have minimal savings, but family are gifting equity in a home or clients have a guarantor with good equity in a property. NOTE, your guarantor must always have independent legal advice as they are putting their assets at risk 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 increase this to a 10% deposit? This could be in the form of an additional gifted deposit or a family loan or early inheritance. 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 option that we are seeing more of is a deposit through vendor finance, or a rent to buy arrangement, 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 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 and 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 build a new home?
Lower interest rates and an exemption from the RBNZ low deposit restrictions have created the opportunity for many people to build their first property, who may have once thought they would never have a chance to own a new home of their own in New Zealand with a deposit as low as 5%.
Whilst section prices have also increased, home and land packages through a Master Builder or Accredited Builder are still a viable option as they will 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 with a deposit as low as 5%, providing you are using one of the well known building firms in the main centres. You will though be wise to have an additional cash buffer for valuation and your legal costs.
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 with 15 to 20%. They may have spare cash to "gift" you as a non genuine savings gifted deposit or may be able to help out as a guarantor, or even borrow 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 10% deposit already saved, don't waste your time, come straight to the experts in low 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.
So, 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, from Mt Eden and south to Manukau, Pukekohe and East Auckland 0800 178 728
Raymond Daniels, Central Auckland, North Shore and West Auckland 0800 178 727
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 any one of us 24/7, or ring our Orewa Office on 09 426 8927 in business hours and it will be our pleasure to assist.
Contact us now for more information
or Freephone 0800 699436 (0800 OXYGEN)