Looking to Get Your First Home Loan?
Looking to get your first home loan and wondering how much you can borrow? Get in touch with us at Alternate, we make buying our first home as stress-free and easy to navigate as possible! With flexible loan options available, we can help you top up that deposit and get you on your way to owning your dream home in no time.
Loan for house deposits
Requesting a loan for house deposits is a common request from Kiwis, and this type of loan package is designed to assist you in meeting the bank’s lending criteria and requirements. With a little financial planning, we can top your funds up for your home deposit amount, with the additional 25% you need to qualify with the banks. Feel free to contact us via email, or give us a call for more detailed information about our deposit options and eligibility criteria.
Remember Your KiwiSaver Withdrawals
When applying for your first home loan, remember that you can withdraw from your KiwiSaver superannuation, and there might also be first home loan grants available. House deposit loans are an Alternate Finance specialty. If you’re just a little short from your savings, reach out and we’ll help find a solution for you.
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Get deposit loans for first home loans
We often help people with mortgage loans, but you can’t be seen as applying for multiple loans at the same time; otherwise, banks will get concerned with you over-leveraging and not grant you approval. Instead, many people who are looking for assistance with their first home loan deposit tap into their parents. Parents often apply for slightly larger loans on lower interest rates and have a personal agreement with you for the best way to pay it back, if at all. Having your parents finance the amount, rather than you, means you can also avoid you having to add it to the disclosure agreement you’ll have to submit. In a housing market where prices are rocketing, your parents might be the perfect answer by having them apply for one of our house deposit loans.
How much can I borrow NZ? The LTV ratio.
New Zealand banks want to protect themselves against the worst-case scenario when lending for a first home loan. They calculate that if the housing market dipped, the most they could lose, and they protect themselves with a buffer. That buffer is often 20% of the purchase price of a home, the deposit on your first home loan. Unfortunately, purchase prices are growing quickly, so getting a loan for house deposits could save you thousands in the long run, rather than waiting and saving.
Rates
Get a loan for house deposits from Alternate Finance with the freedom of loan repayments spread over 36 months, unless arranged otherwise. You’ll receive an email with an annual interest rate ranging between 9.95% & 26.98% p.a. for your short term loans.
For further details, including, how much can I borrow NZ-wide and our loan default interest rate guide, please view our rates and fees here.
Terms
If you want to finance a first home deposit from Alternate, it’s important that you understand our terms of trade in detail. We are responsible lenders and want you to know the conditions. When making an application for your house deposit loans, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavour to keep all information on the Alternate Finance website accurate and up to date, relating to your loan for business investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.
Security
Your details are data protected when applying for a house deposit loan, as we have end-to-end encryption on all of our webforms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.
Did You Know?
How to get ahead?
One way to get ahead with your first home loan is by getting a loan for house deposits with us at Alternate. Secondly, chat to your family to see if they can help. Thirdly, set up revolving credit, so you pay your loan off quicker. And finally, always, always use a mortgage broker.
Investigate revolving credit
In short, revolving credit can be when you have a credit card that you put all of your expenses on that isn't due for another 30 days (interest-free), and in the meantime, you've put all of your wages onto a variable home loan that allows you to draw fast cash when required. This will drop the interest you pay. You pay the credit card off just before it's due.
How does mortgage interest work?
A mortgage has two parts that you'll pay off - the principal, and the interest. Banks make their money from the compounding interest charges and you'd be horrified at the amount you'll pay over the life of your mortgage. You're best to pay as much onto your mortgage as possible to get the interest payments down, so more of your weekly mortgage payment gets allocated towards the principal. If you're disciplined with money, investigate something called revolving credit.
What If my parents say no?
Firstly, you need to ask yourself if you can really afford the property, including rates, insurance, mortgage payments and bills. If you're sure you can, then you can find anyone that's a close friend or relative that will be happy to take the loan out, and trust you to pay them back. It doesn't have to be your parents, but it's best if it is.
NZ borrowing limits?
If you're asking "How much can I borrow NZ-wide from banks?", the answer is usually 80% of the purchase price of the house. This means you'll need a 20% deposit in most cases or if you're a little short, you can apply for house deposit loans from Alternate Finance. For commercial buildings, you'll need to provide a 50% deposit.
Using a Mortgage Broker
You'll be surprised how much of a difference they can make to how much interest you pay in total and can talk you through the advantages of taking a loan for house deposits. Involve your family members in this discussion, too, for your first home loan.
First Home Buyers Grants
In New Zealand you may be eligible for first home buyers grants. You can also withdraw from your Kiwisaver for your first home loan deposit. You can investigate government help here https://www.govt.nz/browse/housing-and-property/
Can I get a Mortgage with 10%
In New Zealand, there's something called lenders mortgage insurance (LMI). It's an insurance premium you'll pay if you buy a house with les than 20% deposit. LMI is often referred to as LEP - Low equity premium. The downside of this is that you'll be paying interest on a higher loan amount. It's best to save the full deposit, or get our house deposit loans top-up service through Alternate, and pay down the loan as fast as possible, rather than over 30 years. How much can I borrow n NZ? This really depends on the lender but usually it's 80%
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Frequently Asked Questions
How much can I borrow to buy a house in NZ?
Usually, if you go to a bank, they’ll want a 20% deposit. If you have less than 20%, then you could apply for lenders mortgage insurance, which insures the lender against your risk. when looking for a house deposit loan, we’ll need to calculate the loan amount you’re able to borrow based on your personal circumstances, but it’s usually to top up your shortfall on the 20% deposit the bank requires.
What is a house deposit loan?
What are the potential drawbacks of financing a house deposit?
Contact our friendly team for more information on a loan for house deposits