First Home Loan
Your first home buyers journey is made easy
Accord home loans will guide you at every step to make buying your first home easy. There are a series of steps for purchasing a first home and to finalise the home loan process. Our experienced team will make sure that the entire process runs smoothly, right from prerequisites like deposit planning to choosing the best-suited home loan plan for you.
It is important to be aware of some of the costs that go into buying a house. This includes deposits, mortgage payments, rates, building inspection reports, insurance, legal fees and other costs. The banks may require a registered property valuation. These all add up to your first home budget.
The first home loan process involves several steps -
- Saving a deposit
- Getting conditional approval
- Choosing the right property
- Getting the right home loan
- Moving into your new home
Saving a deposit
Generally, you need a 20% deposit to qualify for a home loan. You could If you are on KiwiSaver and have been contributing to the scheme for at least three years, you can use your KiwiSaver to purchase your first home. You may be also eligible for a First Home Grant of up to $10,000.
We could get you a home loan with a small deposit of 5% from First Home Lender subject to the eligibility criteria.
Getting conditional approval
Getting a conditional approval or pre-approval for the house can give you an idea of the maximum amount you can borrow and repayments you have to make every month.
Once the pre-approval is provided, the first home buyer should try to find the right property as early as possible, the validity of the pre-approval offer is usually 90 days. In case the first home buyer is not able to find a property within this time period, the offer could be extended if there is no material change in the financial position or regulatory changes
Choosing the right property
With pre-approval in place, you are ready to make an offer on a property that you like. Property hunting can be a daunting task as it involves meeting all the ticks you want in your dream home. Once you have found the property, you can contact us to confirm that the property meets the bank’s criteria and make an offer with conditions if required. The conditions to be put on Sale & Purchase Agreement could include finance, land information memorandum (LIM), builders report, valuations etc.
Under the guidance of your solicitor, you will go unconditional once all the conditions have been met.
Structuring your home loan
Once you go unconditional, we discuss the home loan structure which best suits your financial goals and objectives. The loan could be split into a combination of loans to save on interest costs and also pay off your debt faster. There are four types of homes loans – fixed, floating, offset, revolving or a mixture of home loan options to suit you.
Moving into your new home
Before you move into your new home, you can do a pre-settlement check of the property to ensure there are no surprises before moving in.
You can talk to your lawyer to fix any issue straight away before moving in.
At Accord home loans, we work with all the major banks and other lenders. We try to provide better deals for our clients with lower interest rates and a variety of offers to choose from. We can help you structure your home loan payment so you could save money, pay your debt faster, which suits your needs and your financial goals.