Advice on Financing For First Home Buyers From Solution Street

Solution Street pride themselves on building some of the most accessible new homes in Auckland, and in this article they advise on the financing available for first home buyers. 

As a first home buyer, you’re likely new to the home buying process, and that means you’ll soon discover that there are a few more expenses than you were initially aware of. In addition to your deposit, you’ll need to save for your first mortgage payments, legal fees for the lawyer, building inspections, and new insurance premiums. 

Fortunately, you don’t have to rely solely on your savings to meet your deposit goal. As a first home buyer, you also have the following government programs to help you put down an ideal deposit on your dream home, starting with a First Home Grant. This is available to first home buyers who have been making regular contributions to their KiwiSaver for a minimum of three years. The government grant allows you to receive $1,000 toward your deposit for an existing home for every full year you’ve contributed to your KiwiSaver, up to a maximum of $5,000.  

However, you can receive more from the grant if you opt to buy a new build; the First Home Grant will pay $2,000 toward a new build deposit for every year of your KiwiSaver, up to a maximum of $10,000. What’s more, if you’re a couple, you can each apply for a First Home Grant, receiving a maximum of $20,000 to put toward your new build first home. 

Similarly, the  First Home Loan is available through select New Zealand banks. This is paid to applicants in the market for their first home who enough money for a 5% deposit on a house that costs less than the designated price cap for that region. You can qualify for the NZ First Home Loan if your annual income before tax is less than $85,000, or $130,000 for couples. The lending bank will also examine your credit history and other financial factors to determine your fitness for the loan. 

In addition to grants and loans, you can also supplement your deposit savings with your own KiwiSaver contributions. Like the First Home Grant, you will need to have been contributing to your KiwiSaver fund for a minimum of three years. Additionally, you must leave at least $1,000 in your KiwiSaver account. 

Solution Street help their clients take advantage of every government program available to them so that they can enjoy the best new home their money can buy, and for more information on Kiwibuild homes Auckland please go to https://www.solutionstreet.co.nz .