Quick Mortgage Q&A - Deposits

In our video series Quick Mortgage Q&A's, we answer some of the most commonly asked questions that we get asked as mortgage brokers. Today we are discussing deposits - how much do you need and how can a mortgage advisor help you get a deposit together.

With all of these low rates around, what sort of deposit is ideal to get the best rates?

We'd have to take a look at your situation. There are some great specials advertised out there and people are finding the repayments would be less than their rents. However it's going to come down to what your deposit is. So for those getting the special rates, they would need a 20% deposit. After that it depends on where your deposit is sitting - 15%, 10% or 5%, it's all going to affect the rate that you pay. If you have a chat to us, we can explain these situations with you.

How can a mortgage advisor help with putting together a deposit?

Many people get their deposits from various different sources. KiwiSaver is obviously the biggest one. Many people have been contributing into their KiwiSaver which is a great starting point.  They also might have their own personal savings as well to add to that. Some people are really lucky and their parents might gift them some money towards their deposit, so that counts as well. Or they might have a personal loan on a really small interest rate from family members. So all of that can add up and be counted as your deposit. 

Will every bank offer me their best interest rate, and what factors might impact this?

Sometimes it depends on where all of your deposit is coming from. So some people are really lucky and get a lot of it gifted and they might not have so much saved themselves. So some banks want you to have at least 5% of that deposit you've saved yourself. So that could be from KiwiSaver or your own savings, but if it doesn't make up the 5%, some banks might not lend to you, but others will. So it's really important we get you in front of the right bank and that's where a mortgage advisor can help.

Get in touch if you would like to have a chat to us or have any further questions!