Do You Really Need a 20% Deposit?

Do you really need a 20% deposit to buy a house in New Zealand? Get in touch with the team to find out: https://www.advancedmortgagesolutions... Many first-home buyers assume they need to save a full 20% house deposit before they can apply for a mortgage. In episode 34 of Mortgage Matters, host Joel Sadler talks with mortgage adviser Scott Miller from Advanced Mortgage Solutions about why 20% is an important benchmark – but isn't necessarily the minimum deposit required to buy your first home. Scott explains how some first-home buyers may be able to purchase a home with a 10% deposit and, in some circumstances, as little as 5%, depending on their eligibility, financial position, the lender and current lending criteria. They discuss why having less than a 20% deposit can affect your home loan options, including low-equity costs, lender restrictions and differences between banks when assessing low-deposit home loans. Scott also explains why two first-home buyers with the same 10% deposit could receive very different answers from lenders, and why your income, existing debt, expenses, credit history, ability to service the mortgage and the property itself all form part of the lending decision. The conversation also covers 5% deposit options for eligible first-home buyers, Kāinga Ora First Home Loans, using KiwiSaver savings towards a first-home deposit, and why waiting until you reach 20% isn't necessarily the right strategy for everyone. Most importantly, having less than a 20% deposit doesn't automatically mean you can – or should – buy a home. Getting mortgage advice early can help you understand your actual borrowing position, the home loan options that may be available and what you may need to work on before you're ready to buy. If you're saving for your first home and aren't sure whether you have enough deposit, talk to Scott and the team at Advanced Mortgage Solutions. Chapters 00:00 Do You Need a 20% Deposit? 01:35 Why a 20% Deposit Matters 02:56 Low-Equity and LMI Costs Explained 03:36 How Your Deposit Can Limit Bank Choice 05:56 Why Different Banks Can Give Different Answers 08:22 Can You Buy With a 5% Deposit? 09:56 Using KiwiSaver Savings for Your First Home 11:02 The Risk of Waiting Until You Have 20% 12:52 Assessing Your Position and Next Steps