It seems to be becoming increasingly more common to see articles and commentaries from a range of sources that suggest that homes are unaffordable. We are concerned that some readers / listeners might abandon their goal of home ownership without making sufficient enquiry as to whether it is unaffordable for them.
The simple reality is that there are many aspiring homeowners who can, with some good guidance, advice and support, achieve their goal of home ownership.
We have arranged finance for many people who believed that home ownership was not an option. Many simply don’t realise that they already have the household income required to meet the banks’ lending criteria. Some may need to adjust their lifestyle in order to own a home, but most seem willing to make sacrifices in order to be a homeowner.
They will, of course, also need a deposit.
KiwiSaver has made a real difference to first home buyers’ deposits, and HomeStart Grants (from the Government) are also available for purchases that meet the qualifying criteria. Banks are still lending to applicants with 10% deposits (albeit on less favourable terms and stricter criteria than to those with 20% deposits). Deposit support (from the likes of parents), if available, can also make a real difference to a prospective borrower.
Some are not in a position to borrow straight away, due to a range of potential factors, but with some guidance and effort can get themselves into a position to borrow a bit further down the track.
We have several useful articles on our website blog that we recommend all aspiring homeowners read. Planning for home ownership can make the journey quicker and easier, and taking advice at the early stages of the process can be beneficial.
If anybody you know has mentioned that they would like to buy a home this year, please refer them to our website or ask them to contact us.