Introduction
Buying your first home is one of the biggest and most exciting milestones of your life. But with complex jargon, countless forms, and a fast-moving market, the process can feel overwhelming. At The Home Loan Hub, we believe it shouldn't be. This guide is designed to be your simple, step-by-step roadmap to buying your first home in New Zealand. We'll walk you through each stage, from getting your finances in order to finally getting the keys. Let's get started.
Before you start house hunting, you need to know exactly what you can afford. This phase is all about preparation.
Step 1: Check Your Credit Score
Your credit score tells lenders how reliable you are at managing debt. A good score will open up more lending options and better interest rates. You can get a free copy of your credit report from agencies like Equifax or Centrix.
Step 2: Calculate Your Deposit
Most lenders require a minimum deposit of 10-20% of the property's value. Your KiwiSaver can be a big help here. If you've been a member for at least three years, you may be able to withdraw most of your savings to put towards your deposit.
Step 3: Get Pre-Approval for a Home Loan
This is a crucial step. Pre-approval means a lender has agreed, in principle, to lend you a certain amount of money. It gives you a clear budget and shows sellers and real estate agents that you are a serious and prepared buyer.
Now for the fun part! With your pre-approval in hand, you can confidently begin your search.
Step 4: Define Your "Must-Haves"
Create a list of your non-negotiables. What location do you want to live in? How many bedrooms do you need? What about school zones, sun exposure, and parking? Be realistic but also know what you're looking for.
Step 5: Research the Market and Attend Open Homes
Use online real estate platforms and visit as many open homes as you can. Pay attention to sale prices in your target areas to get a feel for the market. This will help you make a smart offer when the time comes.
Step 6: Make an Offer
When you find "the one," it's time to make a conditional offer. A conditional offer includes conditions like getting a satisfactory building report or a final sign-off on your finance.
Once your offer is accepted, things move quickly. Here's what to expect.
Step 7: The Final Home Loan Application
Once your offer is accepted, your bank or a mortgage adviser will prepare your final home loan application. This is where all the documentation you've prepared comes into play.
Step 8: The Settlement Process
This is the final stage. On settlement day, your lawyer or conveyancer will transfer the purchase price to the seller's lawyer. Once the money is confirmed, the keys are yours! Congratulations, you're a homeowner!
Ready to find out what you qualify for?
The best way to navigate the market is with an expert by your side. Start your inquiry by telling us your goal (purchase, refinance, or other) below.