Purchasing property is always an exciting milestone, but the process can be overwhelming, especially for young New Zealanders purchasing their first home. However, armed with the right knowledge and an understanding of what to expect, you can navigate the process with confidence. Here we discuss the benefits of these three keys steps to streamlining the buying process:
1. Engage the services of a mortgage broker
When embarking on your home-buying journey, it can be hugely beneficial to engage the services of a mortgage broker. A mortgage broker acts as an intermediary between you and various lenders, helping you find the most suitable mortgage options based on your financial situation and requirements. They can provide valuable advice, negotiate terms, and simplify the application process.
Additionally, a mortgage broker can help you navigate current interest rates and the associated vetting of these. Often referred to as a ‘stress test,’ lenders will assess whether or not a borrower will still be able to meet their mortgage repayments and all other financial obligations if interest rates were to increase to a certain threshold. This in turn impacts how much you will be able to borrow.
Mortgage brokers can assist you in taking advantage of any market movement to get better deals with lenders. Get in touch with a Vega Mortgage Adviser to get started!
2. Connect with an EVES Salesperson
Engaging the help of an EVES salesperson can be highly beneficial for first home buyers. Your salesperson can guide you through the entire buying process, offering insights into the local market, showing you through properties and navigating a Sale and Purchase Agreement. They also have inside knowledge of new listings coming to the market and can identify properties that match your requirements and budget, making the search process more efficient.
3. Decide on Your Requirements:
Before you start house hunting, decide on your non-negotiable requirements, and ascertain whether your expectations and budget align with the current market. Consider the following factors:
1) Budget: With the help of your mortgage broker, get pre-approved for a home loan, so that you know how much you are able to spend and can act quickly when you find the right property.
2) Location: Decide on the areas that align with your lifestyle and commute. Consider proximity to amenities such as schools, shops, and parks. With the assistance of a salesperson, learn about the local property market to understand price trends and affordability in the area.
3) Property Type: Consider the type of property that suits your needs, whether it's an apartment, a standalone house, or even a section to build on. Each has its own pros and cons, so choose based on your preferences, budget and future plans.
4) Size and Features: Define the size of the property and features you require in your first home. How many bedrooms and bathrooms do you need? List the essentials and prioritise them accordingly.
Buying your first home is a fantastic achievement. By utilizing the services of a mortgage broker, understanding the impacts of interest rates when servicing a mortgage, engaging the help of an EVES salesperson and defining your requirements, you can navigate the journey with confidence. Remember, patience is key, and finding the perfect home takes time. With careful planning and research, you'll be well on your way to achieving your homeownership dreams! Check out the links below for helpful resources at each step of the buying journey:
Useful resources:
https://www.settled.govt.nz/buying-a-home/thinking-of-buying/understanding-the-home-buying-journey/
https://www.trademe.co.nz/c/property/article/buying-property-in-new-zealand-a-step-by-step-guide
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