Buying your first home? Here's where to start.
Buying your first home is one of life's biggest milestones. It's exciting, daunting, and full of decisions you've never had to make before.
Here at Willis Legal, we've helped hundreds of people through this exact process: Hawke's Bay locals, as well as people around Aotearoa and beyond. Our free First Home Buyers' Guide covers everything you wish you knew before you started. Here's a taste of what's inside.
1. Make a plan
Before you do anything else, talk to a mortgage broker and/or your bank. Even if you're not quite ready to buy, they'll give you the tools to get there. If you are ready, they'll help you get a finance pre-approval in place so you can move quickly when the right property comes along.
2. Get the right support around you
You don't have to navigate this alone. Alongside your mortgage broker or bank, a good real estate agent, building inspector, and property lawyer or legal executive should all be part of your team early on, not just at the finish line. A great place to start is to ask for referrals from people you trust who have done it before. If you’re looking for recommendations, we can suggest a few we’ve tried and tested over the years.
3. Understand your deposit and KiwiSaver
In New Zealand, you'll generally need a 20% deposit. However, there are options if you have less than that, so don’t count yourself out. Your deposit is usually made up of savings and KiwiSaver, so it's worth checking your eligibility to use it. There are other options too, including gifts or loans from family, or co-buying with friends. It’s worth a conversation with your legal advisor before you commit to anything, just to play it safe and in case you need anything documented.
4. Budget for the extras
Beyond the purchase price, factor in insurance, rates, body corporate fees (for unit titles), and maintenance. Then there are the one-off costs: legal fees, valuations, a builder's report, and a LIM report. None of these should be a surprise on settlement day.
5. Start the search with a wish list
Start going to open homes to figure out what's realistic within your budget. Put together a list of non-negotiables - it will help you move faster and with confidence, once the right property turns up.
6. Get Legal Advice before you make an offer
This is the step people most often leave too late. See your legal advisorbefore you submit an offer, not after. We'll make sure your offer includes the right conditions (finance, solicitor’s approval, building inspection, and a LIM or council file review are the most common) and talk you through what the sale and purchase agreement actually means for you.
7. Found your dream house? Get under contract
Once your offer's been accepted, we'll work through satisfying all the conditions with you and your team, step by step. This could include obtaining a builder’s report, a LIM report, meeting financial criteria, making a withdrawal from KiwiSaver, and more.
8. Going unconditional
Once all the conditions are met, your offer goes ‘unconditional’. This means it's time to finalise your loan structure with your broker or bank, and sign your transfer and loan documents.
9. Settlement day
This is it, the day you become a homeowner. We'll complete the settlement on your behalf and the property title transfer into your name. And we'll still be here to help afterwards, whether it's updating your loan structure down the track or helping with financing for renovations.
Get the Full Guide
This article is just a snapshot to get you started. Our full First Home Buyers' Guide walks you through every stage in more detail, with the practical, plain-English advice Hawke's Bay first home buyers need.
Ready to get started on buying a house?
Download the free First Home Buyers' Guide today.
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