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  • How much deposit do I need?
  • Getting your deposit together
  • Home loan repayment calculator
  • Budgeting for home ownership
  • The real cost of a home
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01 HOW MUCH DEPOSIT DO I NEED2
How much deposit do I need?

Group 2
Getting your deposit together

01 HOME LOAN CALCULATOR
Home loan repayment calculator

01 BUDGETING FOR HOME OWNERSHIP 2
Budgeting for home ownership

01 THE REAL COST OF A HOME 2
The real cost of a home

How much deposit do I need?

Owner Occupier

Having a deposit of 20% or more is preferred for buying a home.  You can still apply for a loan when you have a deposit of less than 20%, however only 10% of home loan lending provided by all banks are permitted to have a deposit of less than 20%, plus you will be charged a low equity premium.  Once you’ve got 20% equity in your property, the low equity premium is cancelled. Requirements may differ for those planning on building a new home from plans.

If you’re planning on buying an apartment, the deposit requirements may vary, speak to one of our banking advisors in store or contact us to find out more. 

Investor

Having a deposit of 40% or more is required for buying an investment property. Read more about Property Investment.

Owner Occupier

Having a deposit of 20% or more is preferred for buying a home.  You can still apply for a loan when you have a deposit of less than 20%, however only 10% of home loan lending provided by all banks are permitted to have a deposit of less than 20%, plus you will be charged a low equity premium.  Once you’ve got 20% equity in your property, the low equity premium is cancelled. Requirements may differ for those planning on building a new home from plans.

If you’re planning on buying an apartment, the deposit requirements may vary, speak to one of our banking advisors in store or contact us to find out more. 

Investor

Having a deposit of 40% or more is required for buying an investment property. Read more about Property Investment.

Getting your deposit together

Here are some of the ways you can get a deposit together for your first home.

 

Saving

Regular saving builds up a good track record and shows us you have the commitment that’s needed to pay off a home loan. It also provides instant equity in your new home. 

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Term Deposits

Decide how long you want to put your savings away, lock in one of our rates, then sit back and watch your savings grow.

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Rapid Save

Earn bonus interest when you increase your savings balance each month and make no more than one withdrawal.

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Save with KiwiSaver

Joining the BNZ KiwiSaver Scheme to start building your retirement nest egg or saving for your first home.

Saving

Regular saving builds up a good track record and shows us you have the commitment that’s needed to pay off a home loan. It also provides instant equity in your new home. 

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KiwiSaver Saving Withdrawal

You may be able to withdraw some of your KiwiSaver savings to put towards purchasing your first home.

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Apply for a KiwiSaver withdrawal

If you have a BNZ KiwiSaver scheme, you'll need to apply if you want to make a first home withdrawal.

Kiwisaver Savings Withdrawal

If you’ve had a minimum of three years in a KiwiSaver scheme, you may be eligible to withdraw your own and your employer contribution savings. You can’t withdraw any government contributions, such as the $1,000 kickstart. If you earn less than $120,000, and you’re buying a home for less than $550,000, you may be eligible for a HomeStart grant of up to $5,000.

Kiwisaver Savings Withdrawal

If you’ve had a minimum of three years in a KiwiSaver scheme, you may be eligible to withdraw your own and your employer contribution savings. You can’t withdraw any government contributions, such as the $1,000 kickstart. If you earn less than $120,000, and you’re buying a home for less than $550,000, you may be eligible for a HomeStart grant of up to $5,000.

Kiwisaver HomeStart grant

If you have a 10% deposit, you may be able to borrow enough to buy your first home under the government’s Welcome Home Loan Scheme. The scheme is $1,000 for each year you’ve been in KiwiSaver, up to a maximum of five years. If you’re a couple buying a house together and you both qualify for a grant, you could receive a combined grant of up to $10,000. If you’re buying off-plan, or building new, you could double your HomeStart Grant up to $20,000. Income thresholds apply. You can find more information about eligibility and grant amounts by clicking here

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KiwiSaver Homestart grant

Find out if you are eligible for a KiwiSaver HomeStart grant

Kiwisaver HomeStart grant

If you have a 10% deposit, you may be able to borrow enough to buy your first home under the government’s Welcome Home Loan Scheme. The scheme is $1,000 for each year you’ve been in KiwiSaver, up to a maximum of five years. If you’re a couple buying a house together and you both qualify for a grant, you could receive a combined grant of up to $10,000. If you’re buying off-plan, or building new, you could double your HomeStart Grant up to $20,000. Income thresholds apply. You can find more information about eligibility and grant amounts by clicking here

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Helping out the next generation

Sandy Richardson explains the options for helping others into property investment

Help from family

BNZ is happy to accept gifts for your deposit, such as from a parent or family member, and for some people this can be a great way to get together a deposit. 

Help from family

BNZ is happy to accept gifts for your deposit, such as from a parent or family member, and for some people this can be a great way to get together a deposit. 

Home loan repayment calculator

Use this calculator to work out the monthly repayments on your likely home loan amount. There are two things to think about here: home loan rates change – the rate you’re paying could go up, or down. If rates were to increase, would you still be able to afford your repayments? Secondly it’s the difference between what you’re paying now and what you’d pay if you owned a home that’s important, and helps you understand what you can afford.

Budgeting for home ownership

03 Budgeting for home ownership2

To work out how much a house is going to cost every month, put together a budget that includes these main outgoings: your projected monthly home loan payment, home and contents insurance, your rates and body corporate fees (if applicable). Sorted.org.nz has an excellent budget worksheet to help out.

Once you have this monthly amount, compare it to your current living costs like rent. It’s the difference between the total cost of home ownership, and your rent, that’s most important. This could also influence how much you decide to pay for a home in the first place. Even better, practise living for three to six months on the monthly budget of being a home owner to experience it firsthand.

Now would also be a good time to go back through your banking to learn more about how and where you spend money. Your account statement is a great way to find out what’s essential, and what isn’t. Anything not essential is money you could be saving towards your first home.

03 Budgeting for home ownership2

To work out how much a house is going to cost every month, put together a budget that includes these main outgoings: your projected monthly home loan payment, home and contents insurance, your rates and body corporate fees (if applicable). Sorted.org.nz has an excellent budget worksheet to help out.

Once you have this monthly amount, compare it to your current living costs like rent. It’s the difference between the total cost of home ownership, and your rent, that’s most important. This could also influence how much you decide to pay for a home in the first place. Even better, practise living for three to six months on the monthly budget of being a home owner to experience it firsthand.

Now would also be a good time to go back through your banking to learn more about how and where you spend money. Your account statement is a great way to find out what’s essential, and what isn’t. Anything not essential is money you could be saving towards your first home.

The real cost of a home

Your home loan is just one of the costs that comes with owning a home. Here are some of the others you need to know about before buying a home.

Rates

When you buy your first home, you become a ratepayer. Your rates go towards public infrastructure like roads, water, and parks. They’re calculated on your property’s valuation, and can add thousands of dollars a year to your home ownership costs. You can find out what the rates are on any property you’re considering by asking your real estate agent, or you can search your local council website. 

04 RATES2
Rates

When you buy your first home, you become a ratepayer. Your rates go towards public infrastructure like roads, water, and parks. They’re calculated on your property’s valuation, and can add thousands of dollars a year to your home ownership costs. You can find out what the rates are on any property you’re considering by asking your real estate agent, or you can search your local council website. 

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PremierCare Home Insurance

You're covered for alternative accommodation if you lose your home and there are package discounts available to reduce your premiums.

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PremierCare Contents Insurance

Contents insurance is designed to help compensate you financially if things you own are lost, stolen or damaged.

Insurance

Like most banks, at BNZ, having home insurance is a condition of getting a home loan. It protects your home and the things you own from disasters like fire, flood, and storms. You can find out more about BNZ Home & Contents insurance here. You might also consider BNZ LifeCare insurance to help pay off your loan if anything unexpected happens.

Insurance

Like most banks, at BNZ, having home insurance is a condition of getting a home loan. It protects your home and the things you own from disasters like fire, flood, and storms. You can find out more about BNZ Home & Contents insurance here. You might also consider BNZ LifeCare insurance to help pay off your loan if anything unexpected happens.

Body Corporate Fees

Body corporate fees are charged in apartment or townhouse complexes, and are to cover any facilities that are shared, such as swimming pools, alarm systems, cleaning and gardening services. Body corporate fees can be complicated, so it may help to get a lawyer to review them with you. You’ll want to know in advance about any upcoming maintenance works, as these will affect what you pay for your home. 

05 BODY CORPORATE FEES2
Body Corporate Fees

Body corporate fees are charged in apartment or townhouse complexes, and are to cover any facilities that are shared, such as swimming pools, alarm systems, cleaning and gardening services. Body corporate fees can be complicated, so it may help to get a lawyer to review them with you. You’ll want to know in advance about any upcoming maintenance works, as these will affect what you pay for your home. 

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Find a lawyer

Find an accredited Property Lawyer from the New Zealand Law Society.

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Property Law and You

Find out more about Property Law and how Property Law Section lawyer can help you.

Lawyers' Fees

Lawyers handle conveyancing, which is how the property is put into your name. It’s a good idea to shop around as lawyers’ fees can vary greatly, but they are usually around $1,000 - $2,000. A good place to start is on the Property Law website, which you can find here

Lawyers' Fees

Lawyers handle conveyancing, which is how the property is put into your name. It’s a good idea to shop around as lawyers’ fees can vary greatly, but they are usually around $1,000 - $2,000. A good place to start is on the Property Law website, which you can find here

LIM Reports

Land Information Memorandums (LIM) are prepared by local council to give a summary of the information the council holds on the property. Their costs vary, but they are usually around $250. All sorts of useful information can be recorded on a LIM: rates owing, the status of resource or building consents, drainage and underground services, proposed zoning, methamphetamine contamination, and Historic Places Trust listings are just a few examples of the information recorded. 

06 LIM REPORTS 2
LIM Reports

Land Information Memorandums (LIM) are prepared by local council to give a summary of the information the council holds on the property. Their costs vary, but they are usually around $250. All sorts of useful information can be recorded on a LIM: rates owing, the status of resource or building consents, drainage and underground services, proposed zoning, methamphetamine contamination, and Historic Places Trust listings are just a few examples of the information recorded. 

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MyValocity

Property Valuation Made Simple. Looking for an accurate valuation of your property? Talk to us today.

Valocity

For around $50, you can get an iVal for most properties from myvalocity.co.nz. An iVal is an automated valuation based on recent, comparable sales. These reports are essential when preparing for negotiations, attending an auction, or looking to get a ballpark view of what a property is worth before buying, without paying the cost of a full valuation. 

Valocity

For around $50, you can get an iVal for most properties from myvalocity.co.nz. An iVal is an automated valuation based on recent, comparable sales. These reports are essential when preparing for negotiations, attending an auction, or looking to get a ballpark view of what a property is worth before buying, without paying the cost of a full valuation. 

Building Inspection

A pre-purchase house inspection using a qualified building inspector, is an essential part of most buyer’s due diligence investigations. The inspection report will point out if anything is defective and needs immediate work, and if anything is going to need work over the longer term.

08 BUILDING INSPECTION2
Building Inspection

A pre-purchase house inspection using a qualified building inspector, is an essential part of most buyer’s due diligence investigations. The inspection report will point out if anything is defective and needs immediate work, and if anything is going to need work over the longer term.

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Keep track of your deposit

Check off everything you’ve taken in to make sure you’re on track for success.

Your deposit

Home loan application

Finding a home

Buying a home

Settling

Get home loan free faster

Where to next?