We have been working hard to get first home buyers more choice and better lending options, and can now report that SBS Bank offers first home buyers a range of ways to finance the purchase of your first home.
Kiwi First Home Buyers was developed by Stuart Wills who is one of New Zealand’s top mortgage advisers and the owner of Mortgage Managers.
With the focus on helping first home buyers, the team at Mortgage Managers probably have more exposure to them than any single bank or advisory too with over 200,000 members actively seeking advice. This means that we are often provided with options that are not made available to other mortgage advisers.
We have been working with SBS Bank and now can share some current and some new options.
SBS Bank Offers Kainga Ora First Home Loan
This is the standard low deposit home loan for eligible first home buyers, and you need just 5% deposit.
These home loans have been popular, but there have also been a lot of Kiwis that miss out because they do not meet the criteria. Often this is because they earn too much or have recently changed jobs. Sometimes it is because the house needs more than $10,000 spent on maintanance.
SBS Bank offer a good package for first home buyers, but it’s important to remember that Kainga Ora do charge a Lenders Mortgage Insurance (LMI) of 1.20% which is added to the loan.
SBS Bank “Limited Release” First Home Loan
As the name applies, this is a limited release where SBS Bank can offer a home loan to people that might not be eligible for the Kainga Ora First Home Loan.
The good news with this option is the following:
- You need just 10% deposit
- Okay if you earn too much or have recently changed jobs
- No added fees – no Lenders Mortgage Insurance (LMI) or Low Equity Margins (LEM) that would normally be charged
- Plus you get a 1% Cash-Contribution
SBS Bank Funds Shared Home Ownership
Many first home buyers are not aware that SBS Bank support the shared home ownership with YouOwn.
In New Zealand we have had shared home ownership with Kainga Ora in the past. This was known as First Home Partner and due to the model used they ran out of funds; hence this was closed. We have been actively trying to get the Government to review how this operated so they can re-open the scheme, but at this stage it remains closed.
Shared home ownership is a popular option for first home buyers overseas in places like the United Kingdom where they have had a shared home ownership scheme for many years, and closer to home in Australia where they have a Help to Buy scheme too.
We have also had a commercial non-Government option which has been working well, and with the support of YouOwn who help provide the equity required. This has two funding options – a non-bank option with Basecorp Finance and a
This is only available through a select number of mortgage advisers including us.
This is another option that we have, and it has become very popular especially for first home buyers when affordability means you cannot afford the home that would suit you and your family. These types of options mean you can often buy now rather than wait, and you can spend more to get what you really want.
The benefits are:
- From 5% deposit and 80% from SBS Bank
- No added fees – no Lenders Mortgage Insurance (LMI) or Low Equity Margins (LEM) that would normally be charged
- Easier Assessment (standard assessment criteria)
Banks Will Not Always Approve Your Home Loan
Sometimes a bank is not going to be able to help.
As well as the SBS Bank offers, and other bank options we still have our non-bank options for first home buyers too. This may help if you have credit issue or account conduct that means the bank will not approve the lending, or possibly it’s too hard to prove your income.
The key thing is to speak to a mortgage adviser at Mortgage Managers who has the full range of options for you.
Mortgage Managers has options that banks cannot offer, and most mortgage advisers do not have access to the range of options either – and especially all these options that SBS Bank offer.
