What are my deposit options?
Struggling to get your 20% deposit together? You’re not the only one!
It’s a big ask in Auckland – but first home buyers are our specialty and we have a few options up our sleeves to get you through the door.
Find the right deposit option
Low deposit loans
Banks are keen to assist here but not everyone cuts the mustard. A good–sized, reliable income is key, and you’ll need to make sure there aren’t any skeletons in your financial closet. Whether you could get a low deposit loan is something you need to talk to a mortgage adviser about. The banks’ criteria are very stringent and a mortgage adviser can set you up on paper as attractively as possible to secure the potential loan.
Use your KiwiSaver
You can take out most of your KiwiSaver to buy your first home. And subject to price and income caps the government might throw in up to $10,000 toward your deposit too. If you’re buying a place with someone else then you can double up and it can really add up – two lots of KiwiSaver, two lots of government grant, two lots of savings…
Hit the folks up – to go guarantor
This is where mum and dad let you use the equity in their home to make up the deposit for your house. For example, you might put in 5% cash plus a guarantee equal to 15% from ma and pa. The beauty of having parental help to guarantor, gift or boost your deposit to 20% is that the LVR restrictions won’t apply to you, you won’t have to pay low equity fees, and you’ll be able to negotiate the best interest rates going.
Hit the folks up – for a gift
If you’ve got parents in a position to help, then cash that blessing in as early inheritance! The gift doesn’t have to be for the full 20%, it could simply cover the difference after any cash you bring to the table from KiwiSaver, your own savings, or whatever you can get for a kidney.
Talk to Campbell
Got questions? No worries, there aren’t many we haven’t heard before – get in touch and ask away.