In: Mortgage Tips

Is this the year that you’re going to become a homeowner? Homeownership is top of many people’s lists of New Year’s resolutions, but how do you turn it from a big dream into reality?

There are a few things you can do right now to start getting sorted.

Get advice

Before you do anything, it’s a great idea to get in touch with a Mortgage Link adviser to find out what your options are. You may be surprised to find out that homeownership is a lot closer than you expect.

We can talk to you about how much more you really need to save for a deposit, and what you might be able to afford to spend, so that you can start to get to know the types of houses you could look for.

Amp up your savings

Save as much as you can for your deposit because the more money you have, the more bargaining power you have with the lender.

If you have decided to use KiwiSaver as your first-home deposit, you may be able to withdraw all or part of your KiwiSaver savings and use it towards the purchase price of your home. Plus, you could qualify for extra assistance such as the First Home Grant, provided you meet income and house price caps.

But KiwiSaver, of course, isn’t the only way to boost your savings. We recommend talking to an investment adviser to find the right option for your circumstances.

Start visiting open homes

Even if it’s a little while until you’ll be in a position to buy, it can be very helpful to visit open homes to get a sense of what’s available. This means that if you spot a house that looks right for you in a few months’ time, you should know whether the price is reasonable. You should also be able to spot any bargains that might pop up.

Get your house in order

Banks like to see applications from borrowers with positive account conduct. If yours could do with a bit of improvement, now can be a great time to focus on that. We can talk to you about whether there’s anything in your statements that might put a lender off.

Boost your income

As well as a good deposit, it really helps if you have a good disposable income when you’re applying for a mortgage. If there’s any way you could improve yours, it might make sense to start thinking about that now. For example, you may consider picking up some extra work and create another stream of money.

Think about alternatives

If you’re finding it tough to build enough of a deposit to go it alone, you may be able to use other methods to get in the door. We can talk to you about the options, such as having your parents go guarantor or using a gift or loan of money from a family member. Options, of course, are unique to each individual situation. There are often out-of-the-box ways to get a mortgage over the line if you know where to look.

Build a network

As well as mortgage advisers, it’s important to enlist the help of a good lawyer and possibly some trustworthy real estate agents to turn to when you’re looking for a house. A network of experts can help you to identify the right property for you and how you can get in the door with the least hassle possible.

We can help

If you are itching to set out on the path towards homeownership, give us a call today. Our Mortgage Link advisers would love to help you on your way.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.