First Home Buyer Guide: Step 1 - Are You Ready to Buy Your First Home?
For many Kiwis, owning a home is an important financial goal. It can offer security, stability, and the opportunity to create a place that feels your own. If you’re starting to browse through property listings or are thinking about attending open homes, now may be a good time to consider some of the factors that can help you feel more prepared for the home-buying journey.
Important: This guide provides general information only and does not constitute financial advice, lending advice, or a recommendation to purchase a property. Whether home ownership is right for you will depend on your individual circumstances. We encourage you to seek independent financial, legal, and tax advice where appropriate.
Am I ready to buy a home?
Buying your first home is a significant financial commitment. Taking time to consider your financial circumstances, personal goals and financial plans can help you better understand whether home ownership is the right next step for you.
Looking beyond the deposit
When people think about buying a home, the deposit is often the first thing that comes to mind. While saving a deposit is an important milestone, it's only one part of the picture.
Home ownership comes with ongoing costs and responsibilities that may differ to renting, for example mortgage repayments, insurance, rates maintenance and unexpected repairs.
You don’t need to have every detail worked out straight away, but considering these costs can help you understand the commitments that may come with owning a home.
Understanding Your Income
As part of a home loan application, lenders will generally assess a range of factors including income and expenses, to determine whether a borrower can meet loan repayments over time.
This doesn't necessarily mean staying in the same job for many years. Lenders may consider the nature, consistency and reliability of income when assessing an application.
Understanding Your Existing Debt
Many people have some form of debt, such as student loan, personal loan, buy-now-pay-later arrangement, car finance, or credit card balance.
These commitments are typically considered as part of a home loan assessment and may affect borrowing capacity.
Before applying for a home loan, you may find it useful to review:
- The debts you currently have.
- The regular repayments associated with those debts.
- How your existing debts and repayment commitments form part of your overall financial position
When You’re Ready, We’re Here to Help
If you’d like to learn more about First Credit Union’s home loan products, complete our Home Loan Enquiry Form and one of our friendly team members will be in touch to discuss the products and services First Credit Union may be able to offer.
*First Credit Union Incorporated is not a registered bank. Fixed and floating options are available. Rates are subject to change, for more information about our home loan rates, visit www.firstcu.co.nz. First Credit Union's normal lending criteria and T&Cs apply. Subject to responsible lending enquiries. Property is to be owner occupied.