first house aucklandBack in December 2013 the RBNZ made a common sense concession which allowed over 80% mortgages if that was going to be for the construction of a house. It’s taken several weeks for the banks to formulate lending policy around that decision but it’s finally here.

This is a genuine option for those who earn too much to fit the Welcome Home Loan income limits or who don’t have a guarantor willing to stump up the equivalent of 20% equity or even for those wanting to build a place and then rent it out. You’ll still need to put up a 10% deposit whether in cash (again this could come from a combination of your savings, Kiwisaver, a gift etc).

You more or less need to be looking at a house and land package via a reputable firm who provide a fixed price contract. The fixed price contract is important because it means no surprises for all concerned and sets out the building process and progress payments to the builder. A guarantee from the Master Builders or Certified Builders must be included in the contract and fortunately most house and land package deals have this as a standard term.

Aucklanders, you’ll be helping to solve the city’s housing crisis while you’re at it too. You good citizen you!

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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