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Is Kiwibank Going To Be The First Homebuyer’s Saviour?

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Brian Dalley
Brian Dalley

Recent government discussions of potential tax changes have halted inquiries from investors who usually bought at the lower end of the price range so is this going to open the door to first home buyers.

Well, not if the so-called mainstream lenders have anything to do with it.

Sure, there is the odd one advertising they will consider applicants with less than 20% deposit but my checks on such promotions have lead me to believe it is little more than a branding exercise.

I said from day one that Kiwibank would be a force to be reckoned with and it looks like my premonition was on the mark. I now think that due to their success, you may see at least one Aussie bank leave our shores within the not too distant future. Watch this space…

The government and Kiwibank are working hand in hand to help Maori build on their land as the mainstream lenders didn’t want to have a bar if it.

Now we see Kiwibank and a few others, CBS Canterbury, Nelson Building Society, Southland Building Society, TSB Bank and Selected Credit Unions teaming up with Housing New Zealand to make it easier for homebuyers to purchase their first home through a programme called Welcome Home Loans.

The problem with getting a normal home loan is, for many people, finding the deposit.

Paying rent, supporting a family and trying to save a deposit can be beyond many and can be quite daunting when one is advised 20% is required.

Over the years, I have heard from many frustrated people asking, “Our mortgage payments would be less than what we are paying in rent so why won’t the banks give us a mortgage?”

The Welcome Home Loan removes that problem or goes a long way to relieving the pressure of having to front with a substantial deposit. 

Applicants will still have to meet the HNZ standard criteria and will need to meet the specific lending criteria of the participating lenders; however that is very different from having to pay rent and save for a 20% deposit.

It is pleasing to finally see a Government backed scheme for the property sector that may actually help those that it sets out to.

You can find more information on the package here: Welcome Home Loans or by getting in contact with me directly.

Brian Dalley is a leading Property Consultant | former NZMBA Mortgage Broker and Real Estate Agent.  You can read more of his views and opinions on his website 

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