First Home Loan Solutions for First Home Buyers | 5% Deposit
How Shared Ownership Can Help First Home Buyers Buy Their First Home
For many first 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 first 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 experience the beginning of a shift with falling interest rates and competitive house prices, now is the perfect time for first home buyers to explore how YouOwn can make their dreams a reality.
Navigating the Challenges of First Home Loans
Securing your first 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 first 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.
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!
- 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 first home buyers who may not have been able to save a large deposit.
- 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.
- 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 our comparison here)
- Timing Is Everything: Why Now Is the Perfect Moment: Interest rates in New Zealand have been trending downward, which is a promising sign for first 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 first home buyers.
- How YouOwn Helps Demystify the Process: For many first home buyers, the home purchasing process can be confusing and overwhelming. YouOwn 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, we are there to guide you every step of the way.
In Conclusion
If you’re a first home buyer in New Zealand, now is an excellent time to consider purchasing your first home, thanks to falling interest rates and lower house prices.
With YouOwn’s low deposit co-ownership model, you can overcome the hurdles of traditional lending and purchase your home sooner. By partnering with YouOwn, you’ll gain access to a more flexible and supportive approach – we are here to help you buy your home.