How much you can borrow for your new home depends on a number of factors, including:
- the value of the home
- how much you’ve saved towards your deposit
- your income, and your ability to repay your home loan after you’ve paid your regular expenses
- the type of home (freestanding house, apartment, etc.).
To get an indication of how much you can borrow for a mortgage, and how much deposit you’ll need, you can use our home loan affordability calculator. You can also contact one of our Mobile Mortgage Managers or Home Loan specialists. They may also be able to conditionally pre-approve a mortgage for you on the spot.
Watch our Mobile Mortgage Managers discuss how to reduce your debt and save for the deposit on your first home.
The more deposit you have, the smaller the home loan you’ll need, the lower your repayments will be and the faster you’ll pay off your mortgage. However, if you don’t have a big deposit, don’t panic. Here are some tips to help.
Saving for your deposit
|Start a regular savings plan|
Set up an automatic payment into a savings account each payday. That way you don't see the money in your account so you won't miss it – and over time you’ll be surprised at how much you’ve saved.
|Do a budget|
It’s an essential part of good money management and it’s easier than you think – use our online budget planner. A budget shows you exactly where your money is going, where you could make savings, and how much you can put aside regularly towards your deposit.
|Make the most of extra money|
If you get a pay rise, bonus, or unexpected windfall, increase your automatic payment or make a lump sum deposit into your savings or investment account.
|Keep track of your finances|
Use your bank statements or Internet Banking transaction summaries to keep track of your spending against what you've budgeted for.
Don't make your budget too tight. If you do you will be less likely to stick to it and reach your deposit goal.
|Start saving now|
If you don’t have a savings plan in place, start today. The earlier you start saving the better. The money you save or invest will earn interest, and then you'll start earning interest on your interest!
Additional deposit options for first home buyers
Getting a mortgage deposit together can take time and dedication. Fortunately, first home buyers have some additional options that could help them get their first deposit faster. For more details contact ANZ on 0800 269 4663.
KiwiSaver has two features specifically designed to help first home buyers.
KiwiSaver First Home Withdrawal
If you’ve been a KiwiSaver member for at least three years you may be able to withdraw some or all of your contributions, your employer’s contributions and any investment returns to help you buy your first home. (However, you can’t withdraw the Government kick-start or annual Government contributions). It can take some time to withdraw your first home contributions so it pays to start this process as soon as you start looking for a property. There are conditions and eligibility criteria that apply – for more information, contact your KiwiSaver provider, visit KiwiSaver or read the Guide to buying your first home with KiwiSaver.
KiwiSaver First Home Subsidy
If you meet the criteria, you may be eligible for a subsidy of up to $5000 from Housing New Zealand to help you buy your first home.
Housing New Zealand administers the KiwiSaver First Home Subsidy Scheme. Conditions and eligibility criteria apply. For more information or an application form visit the Housing New Zealand website or call Housing New Zealand on 0508 932 266.
The withdrawal and subsidy may also be available to previous property owners who are in the same financial situation as a first home buyer, as determined by Housing New Zealand. The withdrawal and subsidy are paid directly to a member’s solicitor and used towards the first home purchase.
Your parents or other family member(s) can provide a guarantee to replace the deposit you’d normally need when applying for a mortgage. This allows them to use their assets to help you, without having to provide any money up front. Of course, you must still be able to meet the repayments on your home loan.
There are a number of conditions that both you and the family member(s) providing the guarantee will need to meet, and you’ll both need to get independent legal advice before taking up this option.
You can borrow money for your deposit (or the entire purchase price) jointly with your parents or other family members. This means your mortgage application can be assessed on a joint financial basis, rather than just yours. You and your family members must be able to meet the repayments on the mortgage. You should both get independent professional advice before taking up this option.
Your parents or other family members can gift you the amount you need for your deposit, so you can apply for a home loan. Your family members have no ongoing obligations to the Bank. You should both get independent professional advice before taking up this option.
For more information or to apply for an ANZ Home Loan:
Contact an ANZ Mobile Mortgage Manager
Call 0800 269 4663
Visit your nearest ANZ branch
Investments in the ANZ KiwiSaver Scheme are not deposits in ANZ Bank New Zealand Limited or Australia and New Zealand Banking Group Limited (together “ANZ Group”), nor are they liabilities of ANZ Group. ANZ Group does not stand behind or guarantee OnePath (NZ) Limited. Investments are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group will not be liable to you for the capital value or performance of your investment.
Further information and copies of the Investment Statement for the ANZ KiwiSaver Scheme are available on request, free of charge, from any branch of ANZ or by contacting ANZ Managed Funds on 0800 736 034.
For the ANZ First Home package, you need an ANZ everyday account with your salary, wages or business income direct credited and an ANZ Serious Saver account. ANZ lending criteria, terms and conditions and fees apply to all loans.
A copy of the Reserve Bank Disclosure Statement published by ANZ Bank New Zealand Limited may be obtained on request from any ANZ branch.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.
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