Financing and Planning Advice for First-Time Home Buyers
Are you wanting to buy your first home but aren’t sure where to start? When it comes to buying a home, there’s a lot to consider, but there’s no need to feel overwhelmed and stressed. We at
Hayman Lawyers have created a first home buyer’s checklist as a useful tool to help get you started on the path of
buying your first home!
#1: Budget Planning
The first step in buying your first house is saving for a deposit. You will need to set a savings goal and stick with it. With the recent changes in the housing market around the country, there may be opportunities to borrow with as little as 10% or even 5% deposit, if you meet the “First Home Loan” criteria. You should always calculate your total monthly revenue after taxes from all sources. Next, it is also important to calculate all living expenses for the month (groceries, bills, education, transport, loans etc). Subtract the total of your monthly costs from total revenue. This is the maximum amount you’ll have to spend each month on loan and mortgage payments for a new property, so remember to allow some funds to cover emergencies and future increases in mortgage rates.
#2: Getting a Pre-Approval
To ensure a smooth transitioning during house hunting, have your financing approved as soon as feasible. You can begin your financial journey by investigating possible lenders or contacting your bank. Using a mortgage broker is also useful. Their fees are covered by the bank and they can go over your budget and help you choose a financing plan that you can afford. Your bank may provide you with a pre-approval letter to confirm the amount you can borrow before you buy.
#3: KiwiSaver
You may be able to withdraw all or part of your Kiwisaver savings to go towards your deposit for buying your first house if you have been a member for at least 3 years. Members who are eligible to withdraw their KiwiSaver funds can do so.
There are a few requirements that need to be followed, however:
- At least $1000 must remain in your KiwiSaver account after the withdrawal.
- You can’t use the funds on an investment property.
- Have not owned any land or houses before
- Have not made a first home withdrawal before.
Hayman Lawyers specialist property lawyers can assist you if you’re looking to buy your first home. We have a team of property lawyers who specialise in giving legal advice and assisting with buying your first property.
Call us today for advice on buying your first home!
