You generally require a minimum saved deposit of 5% of the purchase price to buy a house, as banks are limited to a maximum loan amount of 95% of the purchase price (subject to Reserve Bank LVR restrictions). Most Banks at the moment require a minimum
10% deposit.

KiwiSaver Withdrawal

If you are a first-home buyer, and have been contributing to your KiwiSaver consistently for 3 years you are able to withdraw some of your KiwiSaver savings to put towards purchasing your first-home.

It is only your contributions, your employer’s contributions and any member taxcredits that can be withdrawn, not the government $1000 kick-start.
For a pre-approval you will need a letter from your KiwiSaver provider confirming you are eligible to withdraw funds and how much you can withdraw.

Shared ownership

There are options available around Kainga Ora having a share of ownership in the property providing you with a bigger deposit. Contact us for more details.

If you’ve owned a home before

If you’ve owned a home before, in some circumstances you may still be eligible to withdraw your savings to purchase your home. Ka-inga Ora – Homes and Communities will need to determine that you are in the same financial position
as a first-home buyer. Contact them on 0508 935 266. KiwiSaver and First Home grant criteria can change at anytime, so please refer to the Ka-inga Ora website for updates.

95% Home Loans & First Home Loans

The First Home Loan is offered by lenders, supported by Ka-inga Ora, and designed make regular repayments on a home loan, but have trouble saving for a large deposit.

With a First Home Loan you only need a 5% deposit, not a 20% deposit as required by most lenders. Ka-inga Ora does not issue the loan. This is done through normal lenders such as selected banks, building societies and credit unions. Ka-inga Ora underwrites the loan for the lender.

You will need to meet the lender’s specific lending criteria.

Maximum income

To be eligible for a First Home Loan your household income for the last 12 months must have been $95,000 or less (before tax) if you are the sole borrower, $150,000 as a sole borrower with one or more dependents. If you are partnering with one or more borrowers to buy a house, then you can have a combined household income up to $150,000 (before tax).

Talk to your Craig Pope financial adviser today to see if you qualify or if there have been any changes to the above criteria.

Please contact us or click here to see how much you can borrow.