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How Can I Prepare for a Great Mortgage Rate as a First Home Buyer?

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Buying your first home is an exciting process! There are many things to think about when planning to buy your first home, one important one is - how can I get a great mortgage rate on my home? In preparation for going to the bank, here are eight things our friends at Greenlight Mortgages recommend you do to be in the best position for a great mortgage rate.

 

1. Your employment

Banks like a good solid work history so make sure you can provide at least three years of proof. Now won’t be the best time to change to a self-employed profession.

2. New debt

New short term debt like credit cards, overdrafts, loans or hire purchase may affect your application. If you are taking out new debt, it’s a good idea to talk to a mortgage broker who can provide advice around how to go about this.

3. Your spending

You want to show the bank that you can service the mortgage you haven’t got yet. The difference between the rent you pay and your potential mortgage repayments should have started going away into your savings account. This shows the bank proof you can survive on the remainder of your income.

4. KiwiSaver for your deposit

Think about increasing your KiwiSaver contributions if you plan to use KiwiSaver to help buy your first home. You may want to talk to a KiwiSaver adviser such as National Capital before doing this, so you know it's the right step for your personal circumstances.

5. Emergency fund

Can you get some extra savings, perhaps in a separate account for unexpected expenses such as medical bills or car repairs?

6. Fines

It should go without saying that these need to be PAID! Unpaid fines will affect your credit rating.

7. Goals

Talk to your significant other about your financial goals. Make sure you are both on the same page and agree on what your plans should be.

8. Talk to a mortgage broker

Seek advice from a mortgage broker such as Greenlight Mortgages. They are the experts at this and Vanessa at Greenlight Mortgages would love to be the first part of your home hunting support team!

 

Getting a great mortgage rate makes a big difference when it comes to buying your first home. Although there are so many things to think about, seeking advice from a professional financial adviser such as Greenlight Mortgages or National Capital can take away a lot of the stress. 

If you’re looking for advice on how to make the best use of your KiwiSaver account when it comes to buying your first home, start by submitting our KiwiSaver HealthCheck. We will then be able to tell exactly what KiwiSaver fund and strategy is best suited for your individual needs. 

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How can you make the best use of your KiwiSaver account? Let National Capital help.
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