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Breaking Barriers: Your Path to Homeownership with a 5% Deposit

Owning your first home is a monumental achievement, but the journey often involves overcoming the challenge of securing a substantial deposit. Traditionally, lenders demanded a minimum deposit of 20%, creating a significant obstacle for aspiring homeowners. The good news for first home buyers in New Zealand is the groundbreaking First Home Loan initiative.

In the realm of real estate, the golden key to homeownership has long been the elusive 20% deposit. For many, this has been a considerable hurdle, delaying the dream of having a place to call their own. Enter the First Home Loan, a game-changer for those looking to break free from the shackles of a steep deposit.

With the First Home Loan, the deposit requirement is slashed to just 5%, revolutionizing the accessibility of homeownership. This means that even if you haven’t been able to save a substantial amount, your dream of owning a home is still very much within reach.

How Does It Work?

First Home Loans are not your typical mortgage deals; they are issued by selected banks and lenders, underwritten by Kāinga Ora. This unique collaboration allows lenders to extend loans that might otherwise fall outside their standard lending criteria. In essence, it’s an innovative approach to make homeownership achievable for a broader spectrum of first-time buyers.

Navigating the First Home Loan Journey

If the prospect of a 5% deposit sounds like the solution you’ve been waiting for, the next step is to explore your options with a participating lender. Discussing your requirements and individual circumstances will help tailor the loan to fit your specific needs. It’s a personalized approach that recognizes the uniqueness of each aspiring homeowner’s journey.

Why Choose a First Home Loan?

Beyond the obvious advantage of a minimal 5% deposit, First Home Loans offer a pathway to homeownership that understands the challenges faced by first-time buyers. It’s not just a loan; it’s an opportunity to turn your dream into reality with greater ease and flexibility.

Eligibility Criteria

To be eligible, you will need to meet the following criteria: • Be a New Zealand citizen, permanent resident, or a resident visa holder who is “ordinarily resident in New Zealand.”

• Be a first home buyer, or a previous home owner in a similar financial position to a first home buyer.

• Have a before-tax income from the last 12 months of: • $95,000 or less for an individual buyer without dependants.

• $150,000 or less for an individual buyer with one or more dependants.

• $150,000 or less (combined) for two or more buyers, regardless of the number of dependants.

Other criteria include having a minimum deposit of at least 5% of the purchase price, purchasing a home for your primary residence, and not owning any other property or land (excluding ownership of Māori land).

If this sounds like you, seize the opportunity and get in touch today. Let’s start a conversation and pave the way for your homeownership dreams to become a reality!