Buying your first home.

If you have a deposit that’s more than 5% of the home’s purchase price, you might be eligible for a First Home Loan backed by Kāinga Ora. Read our article about buying a first home with a 5% deposit. Another option is to see if you qualify for the First Home Grant, which could bump up your deposit. See our guide about first home loan grants. If neither of these options works for you, some lenders offer low deposit home loans.

Using the ‘bank of mum and dad’ has become a solid trend in recent years. There are several ways your family can help you out. They can offer money towards the home deposit; use their property as equity to support your loan; lend you money to buy your home; offset your loan with their bank accounts; or agree to be a parent guarantor. Read more about these options.

The answer to this question changes like the wind. If you want the best deal going, we recommend you work with a mortgage adviser who knows the current lending market inside out. Connect to an expert home loan adviser.

Getting an interest-only loan for your first home could be a challenge, but there are lenders out there who might consider it. The term for an interest-only loan is usually a year or two, but it can be up to five. At the end of the term you have to repay the entire original amount of the loan. In most cases this is achieved by switching to an ordinary principal-plus-interest loan. Read our article about interest-only loans.

Banks and finance companies are very careful about who they lend money to, because they definitely don’t want you to default on your mortgage payments – it’s not good for you and it’s not good for them. If your circumstances change and your income takes a big hit, your lender may be able to restructure your loan to make it more affordable. Don’t panic! Just talk to your lender or mortgage adviser.