Low Deposit Lending
It is not always easy saving the deposit together and lenders recognize that first home buyers need help to achieve home ownership. Most of the main banks are currently offering 10% deposit finance to first home buyers in the market. There are terms and conditions that apply to these loans as they are a higher risk to the lender, however they are a viable source of funding to get first home buyers into the market with a lower deposit.
Kainga Ora also offer a channel for low deposit lending for first home buyers with the minimum deposit required being 5%. There are certain criteria required to meet to achieve this type of finance, however our skilled advisory team are here to talk through all your options.
Springboard & Guarantor Loans
Home ownership has become increasingly harder over the years as property prices have grown. Often the younger generation are paying rent at the equivalent of a mortgage repayment and finding it hard to save for a deposit. This is sometimes where family can help.
Often parents or family are in a position where they own their home and have a large portion of equity in their property. Through the banks we can look to slice off some of that home equity and use this to provide comfort to the banks to lend to clients with a lower deposit. This sharing of equity is referred to as ‘springboard lending’ or ‘guarantor lending’. This is where the family use their stronger financial position to assist in bridging the equity required for the younger generation to purchase. This may suit families better as it means gifting is not required, rather a sharing of equity.