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Mortgages

Mortgages

Whether you are looking to buy your first home, second home, your forever home or an investment property, Total Wealth can help turn your dream into bricks and mortar.
We can help from start to finish, by answering these questions:

  • How do I save for a deposit?
  • How much do I need for a deposit?
  • Is there any additional help available?
  • How much can I borrow and how quickly can I repay? 
  • How much time and interest can I save if I increase my repayments?

At Total Wealth we can help you achieve your financial goals by answering all these questions and working with you and the lender to put the right structure in place.

How do I save for a deposit?

The first step in saving for a house deposit is to set a savings goal. This takes careful planning and a good budget and yes sometimes a little bit of sacrifice and pain to get into your own home.  But we can take you through the steps and help you get there faster.


How much do I need for a deposit?

Most lenders will require a minimum deposit for a home loan of at least 20% of the house price. So if buying a house worth $500,000 you’ll need to save a deposit of at least $100,000. There may be some exceptions, however, such as through the Welcome Home Loan Scheme for first home buyers, which would require a deposit of 10%.
Keep in mind that the bigger your deposit, the less you’ll pay in interest over the long term. Loans that are for more than 80% of a property’s value tend to have higher charges – as there is more risk for the lender. These charges can vary a lot. Some banks charge for lenders mortgage insurance while others increase the interest rate to cover the risk.


Is there any additional help available?

Yes there are a number of forms of additional Government help through the following:

  • With a 10% deposit, you may be able to borrow enough to buy a first home under the government’s Welcome Home Loan Scheme.
  • If you’re in KiwiSaver and have been contributing to a scheme for at least three years, you may be eligible for a KiwiSaver HomeStart grant. This means that the government could give you up to $5,000 towards an older, existing home, or up to $10,000 towards a newly built home or land to build a new home on. If borrowing with someone else, you can combine those first home buyer grants, which means up to $20,000 if both of you have been contributing to KiwiSaver for five years. There are other eligibility criteria to meet, as well as regional house price caps.


You may also be able to withdraw almost all of the money in your KiwiSaver account to help buy a first home. This is called a KiwiSaver savings withdrawal. 
Find out more about the KiwiSaver deposit subsidy and the KiwiSaver savings withdrawal on the Housing New Zealand website.

How much can I borrow and how quickly can I repay?

The amount you can borrow for a home depends on a couple of things: how much you can afford to repay on your current income, and how much a lender will lend on a property. Lenders want to be sure that you’ll be able to keep up with your repayments and still have enough money left over to live on. They don’t all use the same method to work this out, however.
Choosing the lowest-cost loan and repaying it quickly can save thousands of dollars.