Shoot into home ownership faster with Launchpad
Feeling frustrated because you've got good income but not enough deposit for your first home? Launchpad helps buyers onto the property ladder with as little as 5% deposit.1
We've helped tons of Kiwi get into their first homes with our exclusive Launchpad loan, and we'd love to help you too.
Launchpad is tailored towards those of you who don’t quite fit in the banks’ box, and haven’t got access to the ‘bank of parents’ but are able to afford the mortgage.
- Buy with as little as 5% deposit
- Competitive interest rates
- Best of all, it’s a leg up onto the property ladder
Read on to find out if you're eligible.
Launchpad is made up of two loans, set up in a way that helps you pay them off faster
There's the base loan which is for 80% of the value of the house.
The second bit is what we lend you, to make up the rest of your house deposit. Think of it like the bank of mum and dad, but without the awkward conversation.
Joan Concepcion
New Zealand
We just heard their product launchpad and decided to give it a try. Our mortgage advisor Jessica Carr was so helpful and fast forward 3 months after our initial inquiry, we are now owning our house thanks to Jess and launchpad. 5 star for fast processing, friendly, professional, and reliable service from Jess. I highly recommend her and this company.
Who's eligible for Launchpad?
While we're able to be more flexible than the banks, sadly we can't lend to everyone. To apply, you'll need to be able to tick these boxes:
- First home buyer
- 5% genuine saved deposit (includes KiwiSaver)
- On PAYE or a fixed-term contract for at least a year2
- Intending to live in the property
- Buying in a metro location
As a rule of thumb, if you're buying within 10km of a Macca's and it's not a lifestyle block, the property is likely to be eligible location-wise.
Why can Squirrel offer Launchpad when others can't?
Every day we talk to frustrated first home buyers with excellent stable income but to get a deposit up to 20% in today’s housing market takes years. It’s a common story. You’re ready and can afford to take on a mortgage but the bank won’t let you. Kāinga Ora isn’t an option for higher earners due to income caps and house price caps. It just isn’t fair, right?
That’s where we saw a gap, so we're filling it. Squirrel is in a unique position that we are both a broker and a lender, enabling us to do what other brokers or lenders can’t. We engineered the Launchpad process to enable you, the buyer, to shoot into home ownership faster.
Your deposit amount will depend on the house price. Here's a guide:
| House price | Maximum LVR (Loan-to-value ratio) | Minimum deposit | Launchpad Loan |
|---|---|---|---|
| $1,100,000 | 91% | $100,000 | $1,000,000 |
| $1,000,000 | 92% | $80,000 | $920,000 |
| $900,000 | 93% | $60,000 | $840,000 |
| $800,000 | 95% | $40,000 | $760,000 |
| $700,000 | 95% | $35,000 | $665,000 |
For properties with a price above $800,000 you'll need more than 5% deposit because the maximum Equity Loan amount we are able to lend with Launchpad is $120,000.
How does it work? Well, we did some creative thinking for this one. The loan is in two parts which are set up in a way that helps you pay it off faster:
The Base Loan (80%)
This is the bulk of your loan, set up with a floating interest rate. Payments start off as interest-only so you can focus on paying off the smaller, more expensive Equity Loan first.
- Floating interest rate:3 8.50%p.a.
- Repayments: Interest-only (first 5 years)4
- Term: 30 years
The Equity Loan (up to 15%)
This part of your loan is peer-to-peer funded. It's a bit like getting help from your parents, but without any awkward conversations. You can make extra payments on this loan whenever you like at no extra cost, to get rid of it faster.
- Interest rate:3 9.95%p.a.
- Repayments: Principal and interest
- Term: 5 years
- Maximum amount: $120,000 (meaning if the house price is above $800,000 you'll need more than 5% deposit)
Let's take a look at a real life example
Brooke and Jamie find a house for $800,000. They have a combined income of $160,000 and have saved up a 5% deposit of $40,000. This is how their launchpad loan works:
| House value | $800,000 | ||
| Deposit | $40,000 | ||
| LVR | 95% | ||
| Equity Loan | $120,000 | 9.95%p.a. interest rate | $2,547 monthly repayment |
| Base Loan | $640,000 | 8.50%p.a. floating rate | $4,620 monthly repayment* |
| Total Loan | $760,000 | 8.73%p.a. interest rate | $7,167 monthly repayment* |
| Total interest over 30 years (for both loans) | $1,436,379 | ||
| Total cost (incl. principal repayment) | $2,196,379 |
*Repayments based on being interest-only on a 5 year term at the interest rate specified. This is a hypothetical example only. Interest rates are subject to change.
The process
In a nutshell, here's how the process of buying a house with Launchpad works:
In a nutshell, here's how the process of buying a house with Launchpad works:
2. A mortgage adviser will be in touch
We'll take a look at the details provided in your chat about whether Launchpad is right for you.
3. We'll run some calculations
Providing everything stacks up, we'll send you an indicative offer with details outlining next steps.
4. You'll start the house hunt
Once you've found a place you like, we'll get a formal approval for you to proceed. We'll then make sure the property is suitable and run a credit check.
5. Approval for funding
As long as everything is shipshape, we'll give you the green light and process the funding. The $950 establishment fee can be paid at this point or we can absorb it into the loan.
6. We'll sit down and decide your loan structure
We'll have a meeting with you to set up the mortgage structure in the best way possible to work with you and your lifestyle.
Keen to get the ball rolling?
To get started, simply fill in our online application and we'll be in touch with next steps.
FAQs
We've answered a few commonly asked questions below.
1 Loan approvals are subject to Squirrel's full lending criteria. T&Cs apply.
2 Individuals who are self-employed are not eligible.
3 Interest rates are subject to change.
4 The loan will convert to principal and interest after the initial five year period.
Don’t just take our word for it
Mark Karen
New Zealand
We've used Squirrel investment and mortgage services. On the investment front, we found it easy to use and the interest rates were excellent, selling our investments was easy when we needed to as well. Mortgage services were great too - Emma listened to what we needed, and our circumstances and got us a fantastic deal. The process was smooth from start to finish, with excellent communication and advice along the way.
Anonymous
New Zealand
Really happy Basil was amazing, very efficient, great communication and he worked with us to get a good result. Would recommend him to others
Anonymous
New Zealand
Once again dealing with Emma has been awesome, She just makes things happen and gets us a good deal that is why some of our Kids deal with her also
Abrar
New Zealand
It's been great having Emma Wallace on board with us. We greatly appreciate her wealth of knowledge, professionalism, guidance and prompt response.