First home buyers

Mortgages for

FIRST HOME BUYERS

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We are the specialists in getting you a mortgage in the Auckland marketplace

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Why are we Auckland mortgage specialists?

As the Holden is to Henderson and the Porsche to Parnell, there is no separating the Go2Guys from Auckland. We know the property market here inside out. As mortgage brokers, we’ve helped hundreds of clients secure their first home. And we can help you too. FIND OUT MORE

It’s harder to get onto the real estate ladder in Auckland than anywhere else in the country, so there’s no one formula for home loans. Having a mortgage broker that knows the city and its property market quirks helps… big time. For example, finding a 20% deposit on an Auckland-priced house can be a stumbling block. But, there are ways around it. We can help you work out if a 10% deposit is possible in your situation. Or if you can actually scrape through with a measly 5%… If that doesn’t work there are other options we can work through too, including:

Find out more about the options available to you here. Want to know more? Give us a call or drop us a line.

Characteristics of the Auckland marketplace

If you’re hunting for your first home in Auckland, you’ll already know you’ve got to be savvy and quick-off-the-mark. A good understanding of the market will help you identify the right areas and properties to look at, but developing that knowledge takes time. Luckily for you, we’ve been in this game for a while and have a few tips to get you started. FIND OUT MORE

How to handle the Auckland property market:

  • It’s rising.

    Recognise that you’re buying into a rising market – great if you’ve got a property to sell, but challenging if you’re a first time buyer!

    Our Advice: Be realistic about what you can afford. Do your sums before you start your search and be flexible on what kind of property you buy.
  • It’s growing.

    As Auckland’s population grows, the city is spreading out – fast! There are new communities popping up all over the region, particularly in the north, south and north-west.

    Our Advice: Keep your eyes peeled and your mind open to areas you haven’t considered (or heard of!) before.
  • It’s changing.

    What was an undesirable suburb 10 years ago, may well be out of your price range today. Even ‘up and coming’ suburbs often have a price tag that is out of reach for first home buyers.

    Our Advice: Be flexible about the kind of house you buy – if you have to choose between a great location and the ‘perfect house’, location will make you more money in the long run.
  • It’s competitive.

    Found the right property? You’ll need your wits about you to make it yours.

    Our Advice: Make sure your home loan is pre-approved and have an efficient, thorough and reliable building inspector and lawyer on speed dial.
  • Properties are going, going, gone!

    Auction is the most popular way to sell in Auckland, but this can be challenging if you’re a first home buyer. You may have pre-approval, but it can come with many conditions if your deposit is on the low side.

    Our Advice: Actively seek out properties that are for sale by negotiation. That way you have time to work through your due diligence list without being trumped by a bigger bid.

Want to get prepared? Ask us about your mortgage options.

Where you do you want to live in Auckland?

Just what can your little nest egg secure? The dream may be Milford, the reality – Massey. Figuring out just what you can afford is our speciality. FIND OUT MORE

Flexibility is key.

Many first home buyers start out with specific suburbs in mind, but quickly realise that anything north of the Bombays and south of Warkworth would be good! Those parameters may be a little wide, but being flexible on location and property type is critical if you’re going to make it onto Auckland’s property ladder. Remember that you’re buying your first home not your last home, so your goal should be to buy something decent, grow your equity and then move on to better things in a few years’ time. Talking things through with a mortgage broker will give you a good understanding upfront of how much you can borrow, and more importantly, what you can afford to re-pay. Often this will shape your property search, so you’ll cut out a lot of wasted time if you do this first.

Why not get in touch now? Give us a call or drop us a line.

Let us answer some of your questions

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  • Give us a call us today if you have any other questions 0508 462 489

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How do we work with you?

When you’re weighing up one of the biggest decisions of your life, it’s nice to know someone’s got your back. We take the stress out of all the tricky bits – from figuring out how much you can afford to borrow, to finding the home loan with the best conditions (not to mention the best interest rate) for your situation. In reality, a good mortgage broker doesn’t just get you a great interest rate, they give you good advice to start you off on the right foot.

Get our advice for free.

Good advice usually has a pricetag, but our expertise is free to first home buyers because the bank pays us – yes, the bank pays! Banks pay us a commission when we secure new home loans for them. The reality is, if we can’t put together an appealing home loan for you, we don’t get paid. Which is a pretty good incentive to do the job well! We’re there to deliver a home loan that works effectively for you because, at the end of the day, we want to see you again next time you buy. How we work with you:

  • Meet you to learn all about where you’re at.
  • Understand the nature of your deposit and provide advice about meeting bank lending criteria.
  • Help you understand how much you can afford to borrow.
  • Give advice on buying strategy – location, method of sale, property issues to watch out for.
  • Get you the best overall loan deal – a top rate and good conditions.
  • Help you protect yourself for the future with sensible insurance.

Want to know more? Give us a call or drop us a line.

Lending Lowdown Mortgage Broker or DIY

How much can I borrow?

A vital question, and one that needs an answer before you even start thinking suburbs or house size. When it comes to home loans, your income plays the leading role. But there are some other important factors too:

  • What have you got as deposit?
  • What kind of property are you trying to buy?
  • How does your income look over the next few years?
  • What are your living expenses?

A rough guide to what you can borrow.

Take your income and multiply it by 4 or 5 times. If you’ve got existing debt or kids, stick with 4 times. If you’re kid-free, with no debt, you can probably stretch to 5 times. The resulting number is a ballpark figure of what you can borrow. BUT, calculations only go so far. A conversation can get you much further. So talk to us about your plans and we will quickly work out the ideal type of home loan and amount you can borrow… and realistically pay back.

Think big on deposit.

While a larger deposit means less interest over time, a big deposit isn’t always possible. Haven’t quite scraped that cash together? Take a look at some deposit options that could get you there. For the majority of home loans, banks only lend up to 80% of a property’s value. But, there are exceptions to this rule and we can help you become one of them. We can work with as little as 5% in some cases, although borrowing over 90% is a little tougher and more expensive.

Get pre-approved.

Mortgage pre-approval is essential in the Auckland market. In fact, things move that fast that there’s no point in lookingwithout it. So why not get the process started by calling us today?

Want us to call you back? Drop us a line now.

What is the best mortgage structure for me?

Mortgages come in many different forms and getting the structure right will save you thousands over the term of your loan. As decisions go, it’s a pretty big one – so ask our advice. Here’s what to consider when you’re structuring your mortgage:

Maximum Mortgage Term

Home loans usually have a maximum term of 30 years, but if you structure yours well there’s no reason to be tied to the bank for that long.

Payment Frequency

If you can, try to keep this in line with when you get paid – it makes things much easier. Most banks let you pay fortnightly or monthly.

Interest-only Mortgages

Interest-only is usually only available to mortgages under 80% of the property value or purchase price. Terms can be for 5 or 10 years depending on the bank.

Fixed Rate Mortgage

This means your interest rate stays the same for a fixed term that you specify – between 1 and 5 years. It gives you certainty that the same amount is going out every payment for that term. You may save if the interest rate goes up, or miss out on savings if it goes down. Watch out for early repaymentfees, which could sting if interest rates fall and you need to break out of your fixed term before it expires.

Floating Mortgage

As the name suggests, a floating interest rate mortgage gives you more freedom. Pay it off as fast as you like without any penalties, and you can even draw on funds if you’ve already paid back more than the minimum. As interest rates are always moving, you’ll be more exposed to hikes – but you’ll also benefit when they go down.

Capped Mortgage

Hard to find in New Zealand, a capped mortgage gives you a floating rate that is capped at a certain point if interest rates go up.

Revolving Credit

This works like a transaction account with a huge overdraft – only the overdraft is charged at mortgage rates. The idea is, you put all of your income and savings towards the mortgage so it’s knocking back the interest, then draw your living expenses out of the account as you need to. If you’re disciplined with your pennies, it’s a great option and can help you pay off your mortgage much faster.

Mixing It Up

It pays to bear in mind that you could structure your lending with more than one type of home loan, giving you both stability and flexibility. We can help you figure out what is the right mix for you.

Ask us which mortgage is right for you.

What are my deposit options?

Struggling to get your 20% deposit together? You’re not the only one! It’s a big ask in Auckland – but first home buyers are our specialty and we have a few options up our sleeves to get you through the door.

Low Deposit Loans

Banks are keen to assist here but not everyone cuts the mustard. A good–sized, reliable income is key, and you’ll need to make sure there aren’t any skeletons in your financial closet. Whether you could get a low deposit loan is something you need to talk to a mortgage broker about. The banks’ criteria are very stringent and a mortgage broker can set you up on paper as attractively as possible to secure the potential loan.

It is worth asking about – get in touch.

Hit The Folks Up – For A Gift

If you’ve got parents in a position to help, then cash that blessing in! The gift doesn’t have to be for the full 20%, it could simply cover the difference after any cash you bring to the table from KiwiSaver, your own savings, or whatever you can get for a kidney.

Hit The Folks Up – To Go Guarantor

This is where mum and dad let you use the equity in their home to make up the deposit for your house. For example, you might put in 5% cash plus a guarantee equal to 15% from ma and pa. Learn more about going guarantor and the possible risks. The beauty of having parental help to guarantor, gift or boost your deposit to 20% is that the LVR restrictions won’t apply to you, you won’t have to pay low equity fees, and you’ll be able to negotiate the best interest rates going.

Build New

New is always nice! Especially when you only need 10% deposit and a fixed-price building contract. Who’d have thought? First home in a new subdivision with a house and land package. Hell, why not! Give us a call and we’ll help work out whether this option could suit you.

Welcome Home Loans

Welcome Home Loans offer assistance if you are on a modest wage – in Auckland, that’s defined as $80,000 for a single person and $120,000 for a couple or group. There are restrictions on property value as well – in Auckland you can currently buy a property worth up to $485,000. All you need is 10% deposit to start. It almost doesn’t matter where your 10% comes from – as long as you haven’t borrowed it. It can be from your own savings, a gift or from KiwiSaver. As Welcome Home Loans are aimed at people on a modest wage there are house price caps, and these range depending on where you are in New Zealand. The highest cap is in Auckland – you can check out the limits at the Housing NZ website. There are some specific lending criteria to think about too:

  • Minimum debt levels.
  • Length of employment.
  • Your current assets.
  • The type of property you want to buy.

A few hurdles, but nothing we can’t help you leap, if you fit the criteria. So talk to us and see if it’ll work for you.

Buying With Friends

With the banks requiring 20% deposit for most home loans, pooling resources with friends or siblings is becoming more and more popular. It’s a way of getting into the market, well before you’d be able to do it on your own. When you’re buddying up, a bit more thought does need to go into it though… You will need to work through some basic questions like:

  • What happens if one of us wants to sell?
  • What happens if one of us can’t pay their share of the mortgage?

How many mates do you know who want to get into a place but don’t have enough deposit on their own? You’re probably flatting with them already…

Got questions? No worries, there aren’t many we haven’t heard before – get in touch and ask away.

Lending Lowdown Guarantors

How can I use KiwiSaver to get a house?

Most working Kiwis are part of the Government’s KiwiSaver scheme. If you’ve been a member for a while now, the task of saving your deposit (or at least a good chunk of it) could already be done! As you probably know, if you’ve been part of KiwiSaver for 3 years and put in the minimum over that period, you can take some money out of your savings and put it towards your first home deposit. You’ve got two options for how to use it – with the right approach you can take advantage of them both.

Lending Lowdown Using Kiwisaver for a deposit

To find out if you can get the subsidy, you need to apply via Housing NZ.

If you want some sound advice on which path to take, or a hand simply wading through the forms, give us a shout. We’ve done it all before. Buying with others? Great news You can combine your KiwiSaver drawings and potentially create one massive deposit.

What are the real costs of getting a mortgage?

It’s expensive business buying a house! Forget the sale price, you’ll need to keep your EFTPOS card handy as there are a few other costs to consider, though not all are essential – so don’t fret yet!

Legal fees – To complete the purchase you’ll need a solicitor. Your lender may provide a cash incentive to put towards legal fees, but it’s best to bank on spending about $1500. $500-$2000
Building inspections – You’ll want to make sure your potential home is ship-shape before you sign on the dotted line and that means getting an expert opinion. This can include a builder’s report, and possibly geotechnical and weather tightness reports too. $650
Insurance reports – You’ll need to insure the house when you take ownership of it, so, the insurer will ask you to nominate the ‘sum insured’. For that an insurance valuation is the way to go, which can often be included as part of your building inspection. Included in builder’s inspection
Low equity fees – If your deposit is under 20% you will get stung with low equity fees. Some banks charge a higher interest rate – anywhere from 0.25% to 2% – while others slap on a one off fee of up to 2% of your loan (it can normally be included in your total mortgage). It’ll hurt either way, so we’ll help you figure out the right way to go to minimise the pain. Dependent on your loan value.
LIM report – A Land Information Memorandum… sounds like gobbledygook, but a LIM is really important as it outlines any extra info held against the property which could be valuable before purchase. For example resource consents, special land features, any rates owing, and much more. $265, or $365 if urgent
Valuation – A registered valuation will give you a better picture of a home’s current ‘on the market’ value. It’s much more accurate and current than a CV (Capital Valuation) produced by the council. $400-$750
Accountant – If the property’s used as an investment, accountancy fees could come into the mix, and will crop up annually. $500-$1000 pa
Life insurance – Banks don’t require this but it’s a totally sensible, grown up thing to do. You’re about to take on a chunky liability so covering your backside makes sense. $250-$1000 pa
House insurance – Banks definitely require you to have the house insured so that if it burns to the ground, gets flooded or you accidentally drive the car through the garage wall, it can be repaired. $600-$900pa

That probably looks more scary than it actually is! Not everything is essential. But it is best to go in to house hunting mode with your eyes wide open to avoid any nasty surprises. If you’re worried about all those extras, we can help you work through them before you begin your property search.

Building my first home – is it true I only need a 10% deposit for new build finance?

Apart from the modern kitchen, brand new bathroom and deliciously fluffy carpet, there are some other perks to buying new… If you buy a newly built home in Auckland, you’ll only need a 10% deposit – not the usual 20%

It’s true! Banks only require a 10% home loan deposit on new build finance in Auckland, sometimes less. Why? It’s a government initiative to encourage new housing and reduce pressure on the market

Of course, you still need the income to back your mortgage… but turning your savings into a 10% deposit, rather than a 20% deposit will buy you a lot more house. For example, $80,000 as a 10% deposit will give you up to $800,000 to purchase with. Compare that to a 20% deposit and your $80k only lets you go to $400k – virtually nothing in Auckland! Yes it’s a bigger loan, but it may be the difference between doing nothing or doing something…

Keen to learn more about new build finance?

You’ll need to know how much you can borrow first – so talk to us.

When you’re ready to build, finding a reputable company to deal with is the next step.

We can help with that too. We regularly work alongside Rob East from Mike Greer Homes, and he can fill you in on all the options in your price range.

“Quite a number of our clients are first home buyers and they love the experience of building a brand new home with us – and the fact that it’s actually a possibility for them! We offer a range of turn key options, as well as house and land packages, so there’s a solution for each client’s unique needs,” says Rob.

Think new is right for you? Give us a call.

Weighing up one of the biggest decisions of your life? We’ve got your back. Read More

Circumstances changed? We’ll make it easy for you to take the next step. Read More

Want to know how much you can afford to borrow? We can help. Read More