Posted October 6th, 2024

For many home buyers in New Zealand, the journey to homeownership can seem like a daunting one. Especially if you only have a small deposit saved up.  With banks enforcing strict lending criteria, securing a home loan with a low deposit can feel nearly impossible.

However, there’s a game-changing solution that has now helped over 200 Kiwis into their own homes: YouOwn.

As the New Zealand housing market starts to experiences the beginning of a shift with falling interest rates and competitive house prices, now is the perfect time for home buyers to explore how YouOwn can make their dreams a reality.

 

Navigating the Challenges of Home Loans

Securing a home loan with a low deposit traditionally involves overcoming significant obstacles. Banks often have stringent lending criteria as they consider you to be a higher risk, making it challenging to qualify for a mortgage with a low deposit.  As a  home buyer, you might feel overwhelmed by the complexity of the process, from understanding what you can afford to navigating the paperwork and financial assessments.

 

The Solution: Shared Home Ownership with YouOwn

This is where YouOwn comes in. YouOwn offers an alternative approach to homeownership with its low deposit, co-ownership model that is more cost effective to a low equity loan from a bank if you don’t have 20% deposit. (check out our comparison here)

Though it’s relatively unheard of by many Kiwis, ‘shared ownership’ is not a new idea. These days there aren’t many financially flexible, low deposit options when it comes to buying a house, and this is where shared ownership comes along to change that!

 

1. Low Deposit Requirement: YouOwn’s shared ownership model allows you to buy a home with as little as 5% deposit. This means for example you would only need to have $35,000 saved up to purchase a $700,000 home instead of $140,000 and you can use your KiwiSaver and or savings to make up this deposit.  This makes homeownership more accessible, especially for home buyers who may not have been able to save a large deposit.
2. Shared Ownership Is Simple: You buy a portion of the property you can afford now, and we help with the rest. You’ll own a share of the home, and YouOwn will hold the remaining share. You pay a charge on our portion and after five years, you can buy our share when you are able to.  Check out more about co-ownership works with YouOwn here.
3. Save Money: The YouOwn co-ownership model is more cost effective than a low equity loan from a bank if you don’t have 20% deposit. By securing a lower interest rate and sharing the capital growth, you could save up to $42,000 over a period of 5 years. (check out the comparisons here)
4. Timing Is Everything: Why Now Is the Perfect Moment: Interest rates in New Zealand have been trending downward, which is a promising sign for home buyers looking to secure a mortgage. As rates decrease, borrowing becomes more affordable, making it an opportune moment to enter the property market. Additionally, house prices are relatively low right now, and there are plenty of great deals to be found. This combination of lower interest rates and competitive property prices creates a prime environment for home buyers.
5. How YouOwn Helps Demystify the Process:  For many  home buyers, the home purchasing process can be confusing and overwhelming. YouOwn works with a team that is dedicated to making this journey as smooth and understandable as possible. From providing clear information about the co-ownership model to offering support throughout the application process, they are there to guide you every step of the way.

 

In Conclusion

If you’re a home buyer in New Zealand, now is an excellent time to consider purchasing a home, thanks to falling interest rates and attractive house prices. With YouOwn’s low deposit co-ownership model, you can overcome the hurdles of traditional lending and start your journey to homeownership with ease. By partnering with YouOwn, you’ll gain access to a more flexible and supportive approach, making it easier to secure a home loan and achieve your dream of owning your own home.

Ready to take the next step? Contact YouOwn today to find out how they can help you become a home buyer and navigate the path to your new home.