Getting into your first home
is easier than you think.
First Home Buyer
Buying your first home can be extremely satisfying but also a stressful time. As well as the excitement of getting into your own home there are a number of things that can cause a lot of stress. After all, for most people this will be the largest purchase that they have made.
Planning and financial advice from a good mortgage broker can make the process a lot easier.
Unlike a typical mortgage lender or Bank, we’ll work with you to put a personalised plan in place to help you get out of debt sooner.
Home loan calculator
Use this calculator as a guide to find out what your home loan repayments could be.
What you need to know.
How much do I need?
Deposit requirements vary between lenders and are based on criteria that can change over time. While most lenders say the ideal deposit is 20% of the purchase price there are lenders that lend with deposits as low as 10% and even sometimes lower.
Lenders will often require that at least 5% of the deposit is genuine savings and can be demonstrated with a minimum of 3-months savings history in either a bank account or investment including your KiwiSaver.
What are the repayments?
It is important to know what your repayments will be so you can ensure that you will not be putting yourself under too much financial pressure when you buy your first home.
Don’t forget the other expenses associated with owing your own home, such as council rates, house insurance, life/mortgage repayment insurances, repairs and maintenance and body corporate fees.
Who is the best lender?
Everyone wants to know which is the best bank or lender and which one offers the lowest interest rates. The answer will vary for each individual situation and we can advise you once we have a clear picture of your financial situation and requirements.
When comparing lenders you need to consider a lot of things including which lenders consistently have competitive interest rates, lower account fees and offer you the most suited loan structure.
Are there extra costs?
For first home buyers with a low deposit you will need to consider what additional costs the lender charges. These are referred to as Low Equity Fees or Low Equity Margins and these vary considerably between lenders.
It’s also important that you plan for times when interest rates may increase, or if your income decreases e.g. you start a family and go down to one income for a while.
Should I use a mortgage broker?
To ensure that you are provided the best advice for your personal situation, you should use a mortgage broker. Ideally one that has access to a large panel of lenders and the experience and knowledge to help you get the best deal.
We are licensed with a panel of 24 lenders, of which some are only available through licensed mortgage brokers. This means Rethink has a solution for nearly all financial circumstances.
Getting started is easier than you think.
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Our online mortgage calculator is a convenient way to help you budget and assess your options.
Getting started with your first home loan
If you’re wondering what you can afford, the kind of deposit needed, whether you can get help from family, whether you get a loan even if you have bad credit, or what the difference is between fixed and floating rates – we have all the answers and are here to help.
We offer special products to help you achieve your dream of owning a home. We help you understand the changes in loan-to-value restrictions and what this may mean for you and your first home mortgage (and how we get better rates from the Bank).