The banks are starting to fall over themselves trying to entice potential KiwiBuild customers. One of our major partners are announcing they would consider a 5% deposit on a KiwiBuild. Interestingly this is nothing new in terms of lending criteria as strong borrowers have in the past been able to get 95% loans on a ‘Turn Key’ house and land package.
But the devil is in the detail and just because you have say $25k deposit, doesn’t automatically mean a loan of $475k on a $500k house! Your income will restrict what you can borrow. So roughly assuming you have no debts or dependents, you will need around $120k pa taxable income for a $475k loan. Plus you will need to meet other strict criteria such as clean credit history, excellent account conduct and job history.
Each bank will differ on what they lend and their criteria so it pays to get expert help from a mortgage broker like us!