First Home Loans

Buying your first home can be tricky. We will help guide you through the entire process so you can fulfil your dream of owning a house

Did you know that you can use the money in your KiwiSaver to fund your first home?

With New Zealand’s property market continuing to reach new highs, many young Kiwis might worry about being priced out of buying a home of their own.

But there are far more options available out there to turn your dream of homeownership into a reality.
Here at Legendary Mortgages & Insurances, our highly experienced financial advisers are here to help guide you through the possibilities for funding a home of your own.

These include withdrawals from your KiwiSaver, First Home Grants and loans with lower deposit requirements.

Finish off this part with every situation id unique talk to us and find out what your deposit options are that will get you onto the property ladder.

Where Can I Get A Deposit From?

There are numerous options available for funding your deposit. These can include any of the following:

  • Gifts from a friend or family member
  • Any money you’ve already paid towards the property
  • Your savings
  • Your First Home Grant pre-approval
  • Withdrawals from your KiwiSaver fund

Are you interested in taking out a First Home Loan, or do you want to know more about funding the purchase of your first home?

The mortgage brokers here at Legendary Mortgages & Insurances are here to help you. We’ll work closely with you to understand your unique financial situation, needs and aspirations to turn your dream of homeownership into reality.

To learn more or schedule a meeting with us, please contact our team at [email protected].

KiwiSaver First Home Grants

Have you been struggling to put together the funds you need to meet your deposit? It might be worth looking into Kāinga Ora’s First Home Grant scheme. You could be eligible for up to $10,000 to put towards the purchase of your first home.

Like the other schemes we have mentioned, there are qualifying criteria that you will need to meet. These include the following:

  • You’ve paid into KiwiSaver for at least 3 years
  • You are over the age of 18
  • Your income does not surpass the income caps
  • You do not currently own any property (not including Māori land)
  • Agreeing to live in your new home for at least 6 months

How much could you get? It depends on the property you plan to purchase.

If you are buying an existing home, you can get up to $1,000 for each year you’ve paid into KiwiSaver, up to a maximum of $5,000. If you buy a new home or land to build on, however, you can get $2,000 for every year you’ve paid into the scheme, up to a maximum of $10,000.

Please be aware that your income in the 12 months before applying for the First Home Grant must not exceed Kāinga Ora’s income caps.

This means that you will need to have earned less than $95,000 before tax if applying as a single buyer or $150,000 or less before tax if you’re applying as two or more buyers (for instance, with a partner).

Sounds complicated? It doesn’t have to be. A qualified financial adviser, such as the team here at Legendary Mortgages & Insurances, can provide you with the guidance you need to get the keys to your first home.

Loans for First Home Buyers

Most mortgages in New Zealand require the buyer to put forward a deposit of at least 20% of the home’s purchase price – a requirement that can seem like an overwhelming challenge for many new buyers. Therefore the team at Legendary Mortgages & Insurances offer the option of a 10% deposit – to lend a hand to first home buyers.

Additionally, there are alternatives available. For instance, there are options for mortgages that require only a 5% deposit- and one of these is Kāinga Ora’s First Home Loan scheme.

These are home loans offered through various banks and financial institutions and underwritten by Kāinga Ora. You will need to meet eligibility criteria to qualify, including income that does not exceed given income caps, residency requirements and an acceptable credit score.

The amount you can borrow depends on two factors: Whether your new home is an existing property or a new one, and where it is located in New Zealand.

For example, buyers looking to purchase an older property in NZ can borrow up to $625,000, while those in Dunedin City can only take out a loan of $425,000.

KiwiSaver Withdrawals

One of the many financial mechanisms the New Zealand government has put in place to help get Kiwis onto the property ladder is withdrawals from your KiwiSaver.

If you’re eligible, you can withdraw nearly all of the savings in your scheme to fund a first home. You must, however, leave $1,000 in your account. It’s also important to be aware that any money you withdraw from your KiwiSaver is money taken away from your retirement – so we strongly recommend talking to a financial adviser to assess the best options for your financial situation.

You will need to meet the following criteria to use your KiwiSaver to fund the purchase of your first home:

  • You have been in a KiwiSaver or eligible superannuation fund for at least three years
  • You have not made a KiwiSaver First Home withdrawal before
  • The property or land you are buying is in New Zealand
  • You will live in the home or land you intend to buy