A guide for first home buyers

Opening the door to your first home

Your first home is where you’ll create core memories to cherish forever. From saving to buying, the journey to home ownership can be challenging. It helps to have a plan.

Start early to get ahead

The sooner you start saving, the sooner you'll get to the amount you need for a deposit on your first home. A house deposit is the minimum dollar amount you must pay upfront to secure a house. Generally, you’ll be asked to pay somewhere between 10 to 20% of the sale price. For most people, a bank generally would provide the rest of the purchase price through a mortgage.

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Tip 1

Decide what you’re willing to pay for a house and therefore what you’re comfortable borrowing from a bank.

Tip 2

Consider using your KiwiSaver to contribute towards your deposit. If you’re within a couple of years of using the money, think about shifting towards a more conservative portfolio.

Tip 3

See if you're eligible for a First Home Loan where you only need a 5% deposit.

Channel your inner banker

Become familiar with what you need to qualify for a home loan, what
loans banks offer and at what interest rates. Chat with a mortgage broker or speak directly with a couple of banks.
Do your research and don’t settle until you find the right bank (and/or personal manager) that gets you and offers a good deal.

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Tip 1

Banks often will contribute some cash to help you out with legal fees and other expenses when you buy a house. See what bank offers the best cash back deals. Make sure you’re getting the best deal overall.

Tip 2

Check to see what criteria you need for loan pre-approval.

Tip 3

Choose the loan type and structure that best aligns with your income and lifestyle. A mortgage broker can help you with this.

Get the local goss

Moving into a new house means moving into a new community,
so get familiar with where you want to live. Yes, find out what the average house price is in the area. But, what does the neighbourhood offer in terms of quality of life?

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Tip 1

Drive or walk around the neighbourhood to discover its amenities.

Tip 2

Get a feel for the neighbourhood. Visit local community hubs like cafes, sports clubs, or even the corner dairy.

Tip 3

Ask your real estate agent for local knowledge.

Factor in extra costs

One of the things you’ll encounter as you go through the home-buying process are costs you may not have planned for. These can range from legal fees, paying for Land Information Memorandum (LIM) reports, building inspections, insurance, and moving costs.

Tip 1

Put aside a little extra at whatever frequency you save.

Tip 2

Read the fine print of any contract and don’t sign until you’re one hundred percent certain. Your lawyer should be able to provide advice on anything that’s unclear.

Tip 3

Be open to the possibility of other unplanned costs.

Trust your instincts

Buying your first home is as much an emotional purchase as a financial one. So, let your heart and your instincts lead the way a little. If something or someone doesn’t feel right, then trust that. But, make sure you’ve done all your research, got all the reports, and had all the important conversations.

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Tip 1

Does – or can you make – the house feel like a home?

Tip 2

Have you done everything you possibly can to secure your new home?

Tip 3

Can you really afford it? The deposit, and the ongoing mortgage payments.

If buying a first home is the goal for you, Tempo can help you get there by making your money work that little bit harder.

With the power of investing and a little planning, you'll be on your way to creating lasting memories.

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Things to consider when investing toward your home

Tempo’s financial advice is designed to provide you with an appropriate mix of investments to manage your risk, regardless of your goal’s duration. For shorter-term goals (or as your goal timeframe shortens), Tempo will recommend you invest mostly or entirely into lower-risk investments, regardless of your risk profile. This is because there is less time to ride out any market volatility.

If you're planning to purchase a house within the next 18 months, then a lower fee option for you may be to invest in lower-risk investments directly rather than through Tempo. However, investing through Tempo provides convenient, hassle-free access to an appropriate mix of investments, regardless of your goal duration.

External links on this page

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We have provided a number of links to relevant external websites which we believe to be reliable. However, the information on these external websites (including information provided through the use of online tools) is prepared, managed, and provided by other organisations and businesses, not by us. To the maximum extent permitted by law, we accept no responsibility for the accuracy or availability of the information on those external websites. We also receive no payment for including these links.

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