40+ year olds save 5% to buy their first home
In my last newsletter I eluded to my 40-something-year-old clients who recently bought their first home with only a 5%, deposit. They came to see me more than 18 months ago and we worked out a plan to get them on the property ladder. Using their savings plan, they lived frugally for a period, and drew on their KiwiSaver to get to the rest of that 5%.
Buying a house still proved tricky, since there was a shortage of mortgage loans available in that space. They made offers on two properties only to find out that the banks had run out of funds at that point in time. It was disappointing, and they nearly gave up, but decided to give it one more shot. They put an offer on a third property, which was accepted, and the bank also agreed to give them funding for the property. Needless to say, they were delighted.
If you know of anyone in a similar situation (or who just needs help getting into a house), then please pass along my name. I am always more than happy to assist where I can.
Note: 95%, funding is very limited and you need to show a strong savings history. You also need a bit more than a 5%, deposit to pay the relevant bank fees.