Tip 1: Pay lots, borrow little.

  • Deposits are worked out by calculating the % on a house's value.
  • You'll need to put down at least 5% deposit (so, if the house is worth $300,000, that's $15,000).
  • At that rate, you'll be paying higher than normal fees - until you can make a 20% deposit.
  • he more you can put down upfront, the less interest you'll pay.
  • Consider other ways to cough up the money, if you're finding it tricky. Maybe your family or friends could help?

Tip 2: Use a KiwiSaver.

  • KiwiSaver allows you to set aside money, for just this type of occasion.
  • You can contribute 3, 4, 6, 8 or 10%.
  • Consider contributing more, if you're eyeing up a house right now.
  • Take advantage of things like the First Home Grant or subsidies ($1,000 for every year you contribute to KiwiSaver).
  • Don't rely on subsidies though - a lot of schemes have caps on things like income, house prices and current debt.
  • Still, it's free money if you qualify! But find out if you're eligible first, before you add it into your final budget.

 

Tip 3: Make a budget.

  • Consider all your options - KiwiSaver, savings, weekly income, possible grants, subsidies, etc.
  • Shop around for homes and pay close attention to interest rates.
  • Use an online mortgage calculator if you're not sure what your deposit could get you.

Tip 4: Talk to banks.

  • It's free, so why not?
  • When you do, they'll want to know things like:
    • Proof of regular income (like payslips).
    • Any extra income you receive (like child support).
    • Your monthly expenses (like rent and groceries).
    • Any debts (like store cards, loans and credit cards).
    • Assets (like your car or novelty hat collection).

Tip 5: Don't stick to a lender because it's convenient.

  • Lenders are all different, and will advertise different rates.
  • These rates change after the first year - so be aware of tempting first offers!
  • Your bank has all your info, so it's easier for them to check up on you. Doesn't mean they have the best offer for rates though.
  • On the other hand, banks might just see you as a safe bet, if you've been with them a long time.

Tip 6: Get a credit score check.

  • Lenders will look at a thing called a ‘credit score’ to assess your risk.
  • The higher the credit score number, the better lenders rate you, for things like paying back bills on time and in full.
  • Get your personal credit score checked, before you begin applying for homes. If it's a low number, maybe think about raising it first, to get a better loan offer.
  • To raise your score you can:
    • Pay bills back on time.
    • Close open credit accounts.
    • Clear up bad debt.
    • Limit credit enquires.

Need help managing your money? Yonda's here for you.

Yonda’s all about making your dreams of homeownership come true. That's why we're building a sweet new app that will let you check out your credit score anytime, anywhere, making a better foundation for your financial future.


Sign up here to our early mailing access list, and be one of the first to know when our app goes live.

Stop! Disclaimer!

Info and tools on the Yonda website are to be used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.

Explore

Mortgage finance tips.

Car finance tips.

Credit score check.

Credit scoring tips.

KiwiSaver tips.

Personal finance tips.

Cyber Security tips.

Personal loan tips.

Sign up here to get early access.