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Buying your first Home? Things you need to know

Getting a deposit

This is the first step towards achieving your dream of owning your own home. There are a number of ways you can put together the deposit required to buying a house.

OWN SAVINGS

Saving your way into a deposit is the traditional way, and it shows! The lender can clearly see the regularity of your savings and it reflects on your financial discipline. The more you save, the better it is for you when it comes to borrowing for your home. No pain, No gain; is an old saying that holds particularly true.

GIFTING

It is quite common for a parent or family member to gift the amount required for a deposit. Demonstrable ability to save may be required.

FIRST HOME BUYER SUPPORT

There are three main schemes that are available if you’re a first home buyer:

Welcome Home Loan handy if you don’t have the 20% deposit.

KiwiSaver withdrawal for first home you may be able to put some of your KiwiSaver savings towards your first home if you have been a Kiwisaver member for three years or more.

KiwiSaver HomeStart grant-you may be able to get a grant towards your first home.

Talk to your adviser for more details


COST OF OWNING A HOME

Apart from the initial startup costs there are some regular costs to home ownership.

Rates : Are paid to council for services they provide.

Insurance : You need to insure your home from the day you become the owner

Body corporate levy : If you buy an apartment or a unit you may need to pay a Body Corporate Levy.

Repairs and maintenance : Make sure you keep money aside for repairs and maintenance. Regular maintenance keeps costs down and improves the value of your home.

COSTS OF BUYING A HOME

Apart from the deposit there are other costs that home buyer has to bear.

Valuation : A valuation by a registered valuer is usually a condition for high LVR lending.

Builders report : You may want to get the house checked by a professional building inspector before you proceed with the purchase.

Solicitor’s Fees : The solicitor advises you while buying property. They do all the legal paperwork involved.

Lenders Fees : Most lenders have a loan application fee or a set up fee.

Land Information Memorandum (LIM) : A LIM report is an important document as it will tell you what the council knows about the property.

Lenders Mortgage Insurance : (LMI) also known as LEP(Low Equity Premium) : When you borrow more than 80% of the property value , you may need to pay a one time Lender’s Mortgage Insurance. You can pay this as a lump sum or you may be able to add this to your loan.

Insurance : You need to insure your home from the day you become the owner. You may also get Mortgage Insurance to protect against the unexpected.

Moving Costs : These are costs associated with moving into your new home.

For personalised professional advise on Home Loans, Insurance and KiwiSaver call us today for a FREE no obligation consultation on 022 09 MKART (65278).

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