Dan Crawford
With a Loan Market adviser on your side, you can:
When you go directly to your bank, they can only offer their own specific loan products and are naturally bound by their own lending criteria. Your Loan Market adviser has access to a wide range of banks and lenders, giving you more choice and the power to negotiate a competitive deal for your home loan.
Your adviser does the legwork by researching the market for you, handles the paperwork, and manages the negotiations to find a solution tailored to your goals. Best of all, this service is generally free for you as your adviser is paid by the lender you choose.
Your borrowing power is an estimate of the total amount a lender is willing to lend you based on your income, regular expenses, and deposit. In the current market, this is often guided by Debt-to-Income (DTI) ratios, which typically cap debt at 6 times your annual gross income for existing homes.
Your Loan Market adviser will also look closely at your account conduct for the three months prior to your loan application to ensure you can comfortably manage repayments if interest rates change.
There is often more flexibility if you are building your first home, as new builds are frequently exempt from standard DTI limits.
Try our borrowing power calculator to find out how much you may be able to borrow for your first home.
While a 20% deposit is standard, there are several pathways to enter the market with much less. Most lenders prefer at least 10% of the property value, but government-supported schemes can lower your first-home deposit to as little as 5%.
By working with your Loan Market adviser, you can explore low-deposit lending options and products specifically designed for first-home buyers that you might not find on your own.
Try our savings interest calculator to calculate how much you can save over time toward your first-home deposit.
If you have been a member of KiwiSaver for at least three years, you may be eligible to withdraw your savings to fund your first-home deposit. This withdrawal can include your own contributions, employer contributions, and Government tax credits, though you must leave a minimum of $1,000 in your account.
Your Loan Market adviser will help coordinate the withdrawal with your solicitor to ensure the funds are ready for your initial deposit or final settlement.
If you haven’t quite reached your first-home deposit goal through savings alone, there are other common ways to secure your first home. A popular option is a Guarantor Loan, which allows a family member to use the equity in their own home as additional security to help you bridge the gap without them needing to hand over cash upfront. Alternatively, many first-home buyers use funds gifted by family members; a Loan Market adviser can advise you on how to document these correctly to satisfy bank requirements and potentially secure a competitive deal.
Try our budget planner calculator to identify where you could save more for your first-home deposit.
The First Home Loan scheme is a major advantage for first-home buyers who can service a mortgage but only have a 5% deposit. Eligibility is primarily based on your annual before-tax income, with caps generally set at $95,000 for a single buyer or $150,000 for a couple or a single buyer with dependents. Because there are no house price caps for this scheme, you have more flexibility in choosing a first home, provided you meet the internal affordability criteria of an approved lender.
Previous home ownership does not necessarily lock you out of first-home benefits. If your financial position is deemed similar to a first-home buyer by Kāinga Ora (often referred to as a “Second Chance” buyer) you may still be eligible to access your KiwiSaver and the 5% First Home Loan scheme.
Your Loan Market adviser can help navigate this application process to see if you qualify for a fresh start.
It’s important to have your ducks in a row by budgeting for first-home costs beyond the purchase price. You should plan for solicitor fees to handle the property transfer, as well as a building inspection to ensure your first home has no major defects. Depending on the property and your deposit size, the lender may also require a valuation report at your own cost.
Your Loan Market adviser will help you understand these first-home requirements early so there are no surprises on settlement day.
Getting a formal pre-approval is the best way to buy your first home with total confidence. It involves a lender assessing your finances to confirm they are satisfied you can manage the loan, which typically gives you a clear spend limit for three months. Having this “green light” allows you to bid at auctions or make offers quickly when you find your dream first home.
Your Loan Market adviser will handle the heavy lifting, ensuring your application is lender-ready before you start viewing properties.
Try our loan repayment calculator to understand the amount you will need to pay your lender before you apply for a first-home loan.
Let us know what your goals are and we will connect you with a Loan Market adviser directly.
Find out how much you may be able to borrow to purchase property.
Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.
Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can comfortably meet your repayments.
