1. What you can really afford.
· Use your head not your heart.
2. Get Mortgage Pre Approval
· Providing you meet the criteria, your bank should be able to give pre-approval for a set amount of mortgage funding. This is essential you know what your upper limit is when you go looking for a new home
3. Eligibility for Kiwisaver first Home Withdrawal
· Most buyers will need a deposit that is 20 per cent of the property’s value, but it does depend on your situation. It helps if you can access your KiwiSaver funds but you must have had an account for a minimum of three years.
4. Eligibility for a Housing New Zealand Home Start Grant.
· You could be eligible for a KiwiSaver HomeStart grant of up to $5000 to purchase an existing home, or up to $10,000 when building or purchasing a new home. If there are two of you and you are both eligible, your HomeStart grant could be as much as $20,000. This can be added to any savings in KiwiSaver, which may be able to be withdrawn to help fund a deposit.
5. Look beyond the Paint
· A Builders report, Land Information Memorandum (LIM) and a title check are essential investigations to protect your interests and making sure you are fully aware of what you are buying.
6. Additional costs
· Ensure you have budgeted for additional costs such as Lawyer’s fees, building report, LIM report and moving costs.
7. Ongoing costs
· Factor ongoing costs into your budget such as Insurance, rates and possible Body corporate fees if purchasing a unit title.
8. Negotiate your Mortgage rate
· Shop around for the best mortgage rates. There is no obligation to go with your regular bank.
9 Don’t let yourself be pressured
· Take your time. Your first home purchase needs careful consideration.
10. Seek Legal advice before signing a Contract
· Having your lawyer check any contract before you sign may cost but has the potential to save you time, money and heartache.