Thursday, December 1 2022

With KiwiSaver, mortgage advice and government programs, there are ways to increase deposits for a property. Photo/Getty Images

Each week, the NZ Herald’s Cooking the Books podcast tackles a different money issue. Today, it’s the ultimate guide to what first-time home buyers need to know to improve their chances of getting on the homeownership ladder. Hosted by Frances Cook.

If you’re a first-time homebuyer, you need all the help you can get, and the good news is, you just have a little more access to it.

The government has announced it is making changes to the first home loan scheme which means many more people could be eligible to put down just 5% down on a house.

Considering that gathering a deposit is often the hardest part, this is a big deal.

They’re also changing how you qualify for First Home Grants, meaning more people could benefit from an increase in their deposit of up to $10,000.

This will be good news for many people. Of course, it has always been difficult to buy a house, but it is especially difficult now.

The latest figures from CoreLogic show that the share of homes purchased by first-time home buyers for the first three months of this year was 22.5%. This fell 26% in the second half of 2021.

House prices are starting to come down a bit, but it’s still very hard to make the numbers work.

Interest rates are rising, which means the amount you would pay each week on your mortgage becomes more expensive.

Banks are also working under new, stricter lending rules, making it harder to get approved, even if you can get the money together.

However, even if these new changes don’t help you and you still don’t qualify for a first home loan or first home grant, I don’t want you to give up.

There are still more tactics to try, including different ways to use your KiwiSaver and mortgage tips to try.

If you layer and use more than one at a time, you may be able to get it over the line.

For the latest podcast, I spoke to Rupert Gough, Managing Director of Mortgage Lab.

For the interview, listen to the podcast here.

• If you have a question about this podcast, or a question you would like answered in the next one, come and tell me. I’m on Facebook here, Instagram here, and Twitter here.

• Listen to the full interview on the Cooking the Books podcast. You can subscribe on iHeartRadio, Apple Podcasts or Spotify.


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