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Getting into your first home
Saving for your first home can be hard. But with a solid plan and determination, you can own your own home.
Here are some tips for making it easier:
- Have a plan
- Get into Kiwi Saver
- Talk to your bank about its low-income options
- Consider building
- Make sure you have a healthy credit rating
Put together a plan that allows you to budget, have a surplus (no matter how small) and pay your bills on time. Putting it all down on paper really helps.
Put together a household budget and stick to it. There are lots of online budget tools that will help. If you still can’t make ends meet, then contact a free budget advisory service to help.
You can use your contributions and your employer’s contributions towards your first home. It’s one of the best ways to get a house deposit together. You will be surprised how quickly it builds.
If you earn under a certain threshold then you might qualify for a lower deposit mortgage. Talk to your bank about the amount of deposit you might need.
Many banks require a smaller deposit for building, talk to yours.
Healthy credit rating
Make sure you have a healthy credit rating. You can do this by paying your credit card, hire purchase, power and phone accounts and personal loans on time. Even being a few days late can negatively affect your credit rating. A poor credit rating can be improved by paying accounts on time.