Financing tips for first-home buyers

The idea of buying our first home can often get us caught up in a whirlwind of excitement. And yes, we’re free to envision our new home and dream about building a new life for our families; but obtaining a house isn’t as easy or simple as it may seem.

If you’re a first-home buyer, there are a number of things you should consider and be wary of, especially when putting your deposit together. Here at HomeLegal we’ve helped out plenty of first-home buyers with information that will prove useful to them along the way. Check out our list of expert financing tips for first-home buyers below!

1. Know exactly what money you have available to you

Before you start looking for a home, set a realistic budget by calculating the available funds you have. Funds can come from KiwiSaver, HomeStart grants, your own cash, gifting, and mortgage loans. Estimating a budget helps narrow down your search so you can look for the right property suited to your budget and needs.

2. Know how much you can borrow

Engage a mortgage broker to figure out how much you can borrow. To do this, your lender will ask you to fill out a comprehensive sheet that lists your assets, liabilities, income, expenditure, monthly budget, and other related information to ensure you can meet the loan repayments.

3. Read our free e-book on buying a house

Our e-book, ‘Moving Home – A practical guide for buying and selling your home’, is a useful resource created by HomeLegal for those interested in buying or selling their homes. It includes step-by-step explanations, countdown lists, and checklists to take you through the basics of the residential conveyancing process.

Download our free guide here!

4. Talk to your Kiwisaver provider before you start house hunting

Once you’ve been a Kiwisaver member for at least three years, you can talk to your scheme provider about using your savings to help buy your first home. Ask them about whether or not you’re eligible for the KiwiSaver first-home withdrawal, and request information on the necessary supporting documents – including the KiwiSaver eligibility letter.

5. Discover if you are eligible for a HomeStart grant

You can also be eligible for the HomeStart grant after three years of regular contribution to your KiwiSaver. Learn more about how the HomeStart grant works and the HomeStart grant eligibility requirements.

6. Talk to us before you make an offer

The most important step to buying your first home is to get expert legal advice as soon as possible. Our team of residential conveyancing lawyers have the knowledge, experience, and expertise to help structure your affairs. We’re trained and qualified to sort out all the details regarding the transaction while to get you ready to buy your first home!

HomeLegal lawyers are available to meet in our offices at Wellington, Lower Hutt, or Upper Hutt – contact us today at 0508 HOMELEGAL!