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Buying a home - why am I a "first home buyer"


This is an interesting question for many young people. For many the answer will lay in their KiwiSaver accounts and the other benefits that go with the refund of KiwiSaver funds to purchase their first home.

But what are the other things that we need to consider?

Well, almost as popular as buyers using KiwiSaver, are real estate firms using auctions to achieve the best sale price (as they are required to do) for their vendor clients. The auction process requires that a successful bidder has "unconditional finance" approved by a lender.

So, that auction pack that the real estate agent gives us and is tempting to just put aside, has some critical information around the type of property that we're going to ask our bank or other lender to accept as security.

The auction pack will also include the rules of the auction. One of these rules is a requirement to pay 10% of the purchase price as a deposit at the time we are successful with our bid. But if that 10% deposit includes our KiwiSaver refund that probably won't be available for 3 or 4 weeks, how do we get on?

Another thing that has assumed some importance recently has been the "credit score" that banks consider when looking at our application. Some people particularly those who are new to our country, think that to get a credit score we need to enter into a hire purchase contract. But is that so? And what happens if we need to go to more than one lender?

The above questions are just a few of the many that first home buyers ask, and taking the time to discuss them with a Mortgage Adviser in the comfort of your home at a time that suits, is paramount to Thompson McNeill.

Call us on (03) 281 8605 or email jerome@thompsonmcneill.co.nz


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