Welcome Home Loans are low deposit home loans designed to help people get into that first home and on the property ladder. To achieve this, Housing New Zealand underwrites loans that fit standard credit worthiness and serviceability criteria, but have a lower level of deposit than we would otherwise require.
If you are not eligible for finance under a bank’s credit policy, you may qualify for a Welcome Home Loan.Top of Form.\
It is for people who can service their home loan, but may have insufficient deposit to meet the Bank’s standard lending requirements. If you ;
- are a first home buyer or “second chance” home buyer **
- are buying the home to live in
- have a household income of less than $ 80,000 for a single borrower, or $120,000 for two or more borrowers
and have a minimum of 10% deposit, you may qualify.
The borrowers must either be a NZ citizen or hold a NZ Permanent Residence Visa. Borrowing must be in individual or joint names. Family trusts and business entities are excluded. *Second Chance Home Buyers – Housing NZ considers second chance buyers to be any one who is in the same or similar asset position as a first time buyer. They may have sold a home and have less than 20% deposit. Property Price Caps
- $485,000 Auckland
- $350,000 Hamilton City, Thames Coromandel District, Tauranga City, Western Bay of Plenty District,
- $300,000 all other regions.
Nuts & Bolts
- Interest rates: A Welcome Home Loan can be on a fixed, floating or capped interest rate.
- Lenders Mortgage Insurance Top of Form (LMI). Because Welcome Home Loans are insured, LEM does not apply. The premium charged for LMI is 1% of the total borrowing required to purchase the property. This can be capitalised to the loan.
- Application fee A $400 application fee will apply.
- Supporting documentation All information including the authorisation form is required when application is made. The exception being the Sale and Purchase Agreement and Registered Valuation which can be conditioned for.
Feel free to talk to me your Tauranga Mortgage Broker if you have any questions.
