Buying A Home

For a variety of reasons, home ownership aspirations have traditionally been strong among New Zealanders. Whether the motivation is derived from the traditional affordability of residential property, the attraction of tax free capital gain or for less tangible reasons such as security and a sense of commitment to the community you reside in, as a nation we perceive home ownership as a goal worth striving for. Indeed for many people, their residence is often their major or sole asset of any note.

Like many things worth achieving, the purchase of a home requires careful thought and planning to ensure you make informed and sound decisions to ensure the process runs as smoothly as possible. Fortunately, there are competent and experienced professionals available to guide you through the process.

Things You Need To Know:

• There will be associated costs over and above your deposit, for bank fees, valuation fees, insurances and solicitor's costs.
• If you are borrowing over 80% of the purchase price, you may be required to provide evidence that a portion of the deposit is genuine savings and lenders insurance may be required.
• The lenders insurance company has its own requirements relating to locality, minimum property value and stability of employment.
• If the lender requires a valuation, it will lend against the lesser of purchase price or valuation excluding chattels.
• The lender will require you adequately insure the property against fire.
• A clear credit check is usually required.

Important Considerations

1. Your property requirements:
   • Type
   • Location
   • Layout
   • Price
2. Affordability
   • How much can you afford to pay
   • What incomes do you have to meet the cost
   • What level of income will the lender need
3. Choice of lender:
   • Bank
   • Insurance Company
   • Non bank lender
   • Building Society
   • Solicitor's Nominee Company
4. Loan type:
   • Fixed rate
   • Floating rate
   • Flexi loan
   • Table/ Reducing/ Interest only
   • A mixture of types
5. Repayment options:
   • Loan term
   • Repayment frequency

We strongly recommend you talk to us first. Not only will we accurately advise you of your maximum borrowing ability, what your incidental borrowing costs will be, recommend other professionals such as solicitors, real estate agents, valuers, insurance brokers and property check companies whose services you may need and we'll ensure we arrange the best finance deal available for you.

We'll help you through the entire process so if you have any questions, we're only a phone call away.