Can a 5% deposit get me on the property ladder?

Many Kiwis out there think the dream of owning their own home is dead. However, many banks are accepting First Home Loan deposits as low as 5% on new builds* (title is issued and home has been built within 6 months of completion)

To be eligible you must be a New Zealand Citizen, permanent resident or a resident visa holder, be a first home buyer and you intend to live in the house you buy. There are also income caps in order.

The income caps are

·         $95,000 before tax (if you’re the sole borrower without dependants),

·         $150,000 before tax (if you’re the sole borrower with dependants),

·         a combined $150,000 before tax (if you’re buying a house with other people)

The First Home Loan is designed to help kiwis get on the property ladder. This could be a great option if you can afford mortgage repayments but don’t have enough money for the standard 20% deposit. Keep in mind some or all of your deposit can be gifted by a family member.