playnext.fm

Beyond the Field

You Can Get A Home Loan With A 5% Deposit?! | S3 EP. 22

·21 min·2 clips
Financial advisors Nev and Lisa explain how first-home buyers can get a mortgage with just a 5% deposit in New Zealand.
The episode begins with host Kane introducing financial advisors Nev Jervis and Lisa Barton from Money Empire to discuss 5% home loan deposits. They clarify that a 5% deposit is primarily for first-home buyers who cannot meet the standard 20% threshold, using savings, KiwiSaver, or a First Home Grant. The loan is underwritten by Kāinga Ora and offered by specific lenders like Westpac and KiwiBank. Recent changes include increased price caps, with Auckland now at $875,000 for existing or new builds, and income caps adjusted for singles, couples, and those with dependents. The advisors explain lender criteria, noting that servicing ability is key, and short-term debt like Afterpay or car loans may require clearing, while student loans negatively impact borrowing power. They highlight that a 1% lender's mortgage insurance fee can be added to the loan, keeping repayments manageable. The conversation shifts to the emotional aspect, with Lisa sharing that more buyers are opting to purchase independently without parental help. They stress the value of pre-approvals to define budget limits and warn against unconditional offers without finance secured. Kane poses a scenario about falling house prices, prompting the advisors to advise ignoring media hype and focusing on long-term market cycles. They note that current market conditions allow more negotiation time for first-home buyers. The episode concludes with the advisors plugging their services, emphasizing expertise and relatable experience.

As heard by us

A clear, practical look at the 5% deposit option, its fee, lender access, and borrowing limits.

A 5% home loan deposit can make a first home feel within reach, and Beyond the Field keeps its focus on the practical details behind that promise.

Read the full review in PlayNext →

Why you'd press play

You want to know whether a 5% deposit can put a first-home buyer within reach of a home loan.

Read the full recommendation in PlayNext →
Listen to the show on
Apple PodcastsSpotify
Play clips from this episodeMore from Beyond the Field