Buying your first home in New Zealand is one of the most exciting milestones you’ll ever achieve. However, the journey from scrolling through TradeMe to holding the keys can feel like a marathon. At AdviseNow, we believe that with the right preparation and a clear roadmap, the process can be smooth and rewarding.
1. Getting Your Deposit Ready
The first hurdle is often the deposit. In NZ, most lenders look for a 20% deposit, but there are options for 10% or even 5% through schemes like the First Home Loan. Your KiwiSaver is likely your biggest asset here. If you’ve been a member for at least three years, you can usually withdraw your contributions, your employer’s contributions, and the government tax credits.
2. Understanding Pre-Approval
Before you start falling in love with houses, you need to know your budget. A mortgage pre-approval gives you a clear spending limit and shows sellers you’re a serious buyer. It typically lasts for 60-90 days, giving you a window to house hunt with confidence.
3. The Hidden Costs
It’s not just about the purchase price. Remember to budget for:
- Building inspections (essential for peace of mind)
- Registered valuations (often required by the bank)
- Legal fees for your solicitor
- Moving costs and initial insurance premiums
Key Takeaways
- Start your KiwiSaver withdrawal process early.
- Get a pre-approval before you start bidding.
- Always include a building inspection clause in your offer.
FAQ
Q: Can I use my KiwiSaver for a deposit?
A: Yes, if you’ve been a member for 3+ years and it’s your first home.
Q: How much deposit do I need?
A: Ideally 20%, but 5-10% is possible with specific government schemes.
Disclaimer: This information is general in nature and does not constitute personalised financial advice.
Need personalised financial advice?
Whether you’re buying your first home, reviewing your insurance, or growing your KiwiSaver, AdviseNow is here to help.
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