Having a deposit is the first step, most lenders will require a minimum deposit at least 20% of the total home loan – so if you are borrowing $700,000 you’ll need a minimum deposit of $140,000. If you don’t have the 20% deposit there are some exceptions such as the Welcome Home Loan scheme for first home buyers, which brings the deposit down to 10%. On the other hand, if you are in a position to pay more than the 20% minimum you can pay less in interest over the long term.
Figuring out the math is the most important part of setting yourself up, and that’s why have financial in our name, we can offer professional advice on how to sort your deposit before you even talk to the banks.
If you are also part of the KiwiSaver scheme, this can also be utilised to help with your deposit, you can read more about that here.