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Ready to make that commitment of buying your very first home? It’s an exciting and overwhelming decision to make – especially for a first-home buyer. As you enter the property market for the first time, there’s a few things you should know before diving in head first.
With the help of Home Legal, here are 4 finance tips you should know as a first-home buyer.
Before you begin house hunting, it’s important to understand what your budget is. You don’t want to get ahead of yourself before knowing what kind of house can actually afford. While you may have money in the bank, many first-home buyers can also receive funds from KiwiSaver, HomeStart grants, and mortgage loans to help secure the purchase of a home.
Once you’ve set a realistic budget based on what money you have available, you can start hunting for the right home that suits both your budget and your needs.
Talk to your bank or independent mortgage broker to figure out how much you can actually borrow. You’ll need to hand over personal information that identifies your assets, liabilities, income, expenditure and any other related information. They will look over all of this material to figure out how much they can lend you, and ensure that you can meet any loan repayments.
If you’re a Kiwisaver member, you may have the opportunity to access your savings to help fund the deposit for your first home. If you’ve been a member for at least 3 years, talk to your KiwiSaver provider to see whether you’re eligible for the KiwiSaver first-home withdrawal.
Another option for KiwiSaver members is the HomeStart grant. If you’ve been making regular contributions over a 3 year period, you may be entitled for the grant.
There are two HomeStart grants: