Your first mortgage, or home loan, will probably be the biggest financial commitment you’ll ever make.
Most of us look at dozens of places before finding the right home to buy. It’s a good idea to be just as careful when choosing a mortgage. Over time, repayments could add up to a lot more than the cost of the home.
There are many types of mortgages, each with its own interest rate, fees and degree of flexibility. All these things affect how much the loan costs and when it will be paid off.
Start with a Mortgage Broker
We recommend you utilise the services of an experienced and qualified Mortgage Broker. Their services are free and they will be able to shop around between the banks to source the best deals from all the banks.
With a 10% deposit, you may be able to borrow enough to buy a first home under the government’s Welcome Home Loan Scheme.
First Home Buyer Grant
If you’re in KiwiSaver and have been contributing to a scheme for at least three years, you may be eligible for a KiwiSaver HomeStart grant. This means that the government could give you up to $5,000 towards an existing home, or up to $10,000 towards a newly built home or land to build a new home on. If borrowing with someone else, you can combine those first home buyer grants, which means up to $20,000 if both of you have been contributing to KiwiSaver for five years. There are other eligibility criteria to meet, as well as regional house price caps.
You may also be able to withdraw almost all of the money in your KiwiSaver account to help buy a first home. This is called a KiwiSaver savings withdrawal.
However, paying off a mortgage principal and interest can severely impact on your financial security and your peace of mind; and the reality is that most New Zealanders will retire with a mortgage. You don’t have to.
That’s why for most New Zealanders investing in property is the only option to pay off their home mortgage faster and to enjoy an extra income when they retire.
When you’re ready, come and talk to us about how buying an investment property to help pay off your home mortgage faster.