Trying to save up for your first home? We can help
If you've been dreaming of buying a house for the first time, you're absolutely not alone. All over New Zealand, there are thousands of families with that same ambition. There's just one problem - houses can be exorbitantly pricey, even if you have a long-term mortgage and a small down payment. Just beginning the process of buying a house is a daunting prospect financially.
Needless to say, you'll have to start saving early and often if you want to own a beautiful home. This means putting away a good deal of cash to cover that first down payment and then, as time goes on, ensuring you have steady access to the money you need for mortgage payments.
Saving ahead for the big deposit
If you're a first home buyer looking to pull off a big purchase, the main thing you have to know is how to put down that initial deposit toward paying for a house. The best way to approach this daunting challenge is to set a savings goal for yourself. For example, if you're looking for a $600,000 home, you'll often need to put down 20 per cent in advance, which means saving up $120,000 at the start.
This might sound scary, but keep in mind: The more you deposit early, the less you pay in interest later. Saving effectively early in the process will help you save in the long run.
Planning well for the long haul
Perhaps the most valuable piece of mortgage advice you can get is this: You should always be thinking about the long term. A lot of people in New Zealand think about the short term first, meaning they care about this week's paycheck or this month's rent. But if you care about your big-picture goals in addition to your immediate ones, it's easier to plan.
For example, if you're willing to stash money away in savings for a down payment and instead of dipping into it, let it keep accumulating interest over time, you're going to be much better positioned to make a bigger payment, and earlier. The more you plan ahead, the better off you are.
We can answer all your mortgage questions
It's often a stressful process when you set out to buy a home for the first time. That's the bad news. The good is that if you work with Squirrel Mortgages, the stress goes away.
You might have lots of questions, but we have a team of experts who are more than happy to provide answers. Talk to a mortgage broker in our office today and find out how we can help you overcome challenges in the housing process.