Feature article
Getting your money together: how much do you need?
Did you know you can buy a house with less than a 20% deposit?
AI summary
You don't always need a 20% deposit to buy a home in New Zealand. While banks have Loan-to-Value Ratio (LVR) restrictions, several deposit options exist, each with different conditions.
- A 5% deposit is possible but has strict income caps and requires paying Lenders' Mortgage Insurance.
- A 10% deposit is common for new builds and may mean higher interest rates for existing properties.
- A 20% deposit unlocks better rates and potential cash back offers.
Remember to budget for extra costs.
1. A 5% deposit
2. A 10% deposit
3. A 30% deposit
Some complicated terms
Cash back
Loan-to-Value Ratios (LVRs)
Example 1: Buying a $675,000 house on your own
Example 2: Buying a $875,000 house with someone else
When do you need the deposit?
Buying a new build
Buying an existing home
Other things to consider when paying your deposit
Before going to auction, you should…
Make sure you leave a little money left over!
Financial Disclaimer
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