October 2016's Property Gazette

Borrowing with a 5% Deposit

We’re excited to announce that our clients can now access 5% deposit mortgages for owner occupied builds! This means that if you have ever thought that building is for you, there is no better time than now. With the Reserve Bank requiring banks to approve lenders with 20% deposit or more, this has left many would be homeowners stuck renting or flatting. The shortage of available properties on the market has only continued to fuel rising house prices, with many first time buyers becoming discouraged at the huge competition when making an offer on a property. This has made building your own home more appealing.

New builds were not often seen as viable choices for many buyers, especially first home buyers. Many people were unable to pay both the rent where they were living and the repayments for the mortgage as the home was being built. However, if you are a first home buyer, you can utilise both your KiwiSaver and HomeStart Grant funds to make up your 5% deposit. This leaves you with the cash to pay your rent and mortgage costs until your new home is built.

Investors need not fret about obtaining the required 40% deposit needed to purchase a property, as we also have access to 20% deposit investment new builds too.

If you would like to discuss how the LVR changes affect you, or start applying for a new mortgage, contact one of our friendly Mortgage Brokers today. Remember, we work for you and our services are always free.

  • Scott and Jo demystified the whole process and helped us buy our first investment property.
    Neil and Brigitte Glasson - 17 January 2017
  • After calling another high profile mortgage company and getting no response, I found Advanced Mortgage Solutions via Google, from the first phone contact they were on the job and able to meet me on the same day and kept me informed through the process until settlement.
    Philip and Joanne Rushton - 21 January 2015 - 21 January 2015
  • A huge thanks to Scott for his knowledge, advice and professionalism through our entire first home buying experience.  
    Jamie Hetherington and Michelle Roundhill - 01 December 2016

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