First Home Buyers
Securing your deposit
SAVING FOR YOUR FIRST HOME
There are lots of ways to save and the best advice is start early. Even the smallest of regular contributions can make a big difference. The important thing is to have goals and timeframes. This means when you reach even the smallest milestone you can celebrate.
Securing a deposit for your first home is always a challenge, but there is help available:
USING YOUR KIWISAVER
For first home buyers this can be a great source of support. After three years of membership you may be able to withdraw funds to add to your deposit (apart from the $1,000 government kick starter). Switch Home Loans can help with accessing as much as you can. The first step is to talk to us about whether you are eligible.
KIWISAVER FIRST HOME GRANT
This is also a possibility if you’ve contributed to KiwiSaver for three years. If you are eligible you could get up to $5,000 for each member to buy an existing home. But if you are buying new, or have land to build, this could double to $10,000 per member, and up to $20,000 for each loan.
THE FIRST HOME LOAN
As its name suggests, this allows some first home buyers to get into their first home sooner. These loans require only a 5% deposit and are issued by some banks and are underwritten by Kainga Ora - Homes and Communities (formerly Housing New Zealand).
While the criteria to qualify are tight, if you think this is an option, we can help.
USING CASH GIFTS
When building a deposit you need to show genuine savings over time, or those you’ve made yourself or with someone else because lenders need evidence you are trustworthy, responsible and committed as a borrower.
However, you can also use cash gifts towards your deposit, such as one from a family member. While there are strict rules, some lenders are more open to this option. We know these lenders very well so can provide assistance to access this scheme.
Woo-hoo! Pop the Champagne and congratulations, you now have your deposit –now its time to find the best mortgage, a great interest rate and the right property.