Most lenders are now offering an easier way for first-time home buyers to get on the property ladder. You can leverage off your family members’ home equity to get to the required 20% deposit.
For some time now that banks have required a 20% deposits from first-time buyers, however the deposit doesn’t have to be completely savings based, which is usually a struggle for many young people with rising house prices.
Deposit funds can come from:
- Savings
- Gift
- KiwiSaver
- Equity from a family members' home.
When looking at loan applications banks will also consider the following:
- Loan Affordability
- Level of existing consumer debt
- Credit history
- Age of parents or family member
- Whether the property used is an owner-occupied property or rental
- Location of the property
The beauty of this initiative is that your family does not have to give 'cash' up front, they simply use the equity they have in their home to help you get a foot in the door. They are also not required to make a mortgage repayments, that's up to the First Home Buyer. To find out more about how this could help you secure your first home, call us today.
