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Your Journey to Home Ownership
Starts Here.

At Twine Financial Advisers, we specialize in simplifying the often overwhelming process of purchasing your first home. We create a First-Home Roadmap that leads you through the entire journey, from assessing your financial readiness and understanding your borrowing capacity to formulating a savings plan and securing a mortgage. We provide valuable insights into current market conditions and trends, empowering you to make informed choices. Don’t let the complexities of buying your first home hold you back—let’s embark on this journey together.

What’s included?

  • Clarifying your homeownership objectives.
  • Guiding you step-by-step through the home-buying journey.
  • Assessing your finances and determining your borrowing capacity.
  • Creating a tailored plant ot help you reach your savings goal.
  • Getting you the pre-approval from the bank.
  • Connecting you to other professional advisers, if required.

How much does it cost?

Our services are free given you also settle the loan with us.

The First Home Buyers’ Road Map


Getting your deposit together

When it comes to your deposit, having at least 10% is usually required. However, aiming for a 20% deposit is better as it helps you avoid additional costs like the Low Equity Margin (LEM) on top of your interest rate. Let’s explore different ways to help you build your deposit:

1. Your own savings / KiwiSaver withdrawal

Saving at least 5% of the deposit demonstrates to the banks your capacity to save responsibly and live within your means. This can include your personal savings as well as funds withdrawn from your KiwiSaver account.

2. Family help

Family contributions can significantly boost your deposit, getting you closer to the 20% mark. If you save 5% of the deposit yourself (including KiwiSaver), the banks won’t mind where the remaining 15% comes from, as long as it’s not another loan. Here are some options:

  • Gifting

Parents provide a cash contribution without expecting repayment. To satisfy the bank, you’ll need to provide a gifting certificate.

  • Deed of Debt

This involves a cash contribution with a caveat to repay upon the sale of the property. It is non-repayable and non-interest bearing. Seek legal advice before finalizing this agreement.

  • Guaranteeing

Parents use part of their available equity and their property as security for your deposit.

  • Renting from Parents

If the bank’s lending amount isn’t sufficient, you and your parents can collaborate. Your parents can purchase the property and rent it back to you. Once you’ve built up enough equity, you can buy the property from them at an agreed price.

3. Kainga Ora First Home Grant

Consider exploring the Kainga Ora First Home Grant, an initiative that provides financial support. The grant amount varies based on whether you’re purchasing an existing home or a newly built property. Apply in advance, as Housing New Zealand processes the grant and transfers it to your solicitor’s trust account on settlement day.

4. First home loan

With a First Home Loan, you only need a 5% deposit, making it an excellent option for first-time buyers. Keep in mind that this loan is available through select banks and underwritten by Kainga Ora.


How much can you borrow?

Two important factors come into play when it comes to borrowing for a home: how much the bank will lend on the property and how much you can afford to repay. Your Twine adviser will guide you through the process and ensure you make informed decisions that align with your financial goals.

1. How much will the bank lend on the property?

Lenders generally lend up to 80% of the property’s value, requiring a minimum 20% deposit. This is known as the Loan-to-Value (LVR) ratio.

For example:

If the purchase price of the house is $500,000, 20% deposit is $100,000.

Explore Low Deposit Options:

Low-deposit options can allow you to borrow up to 95% of the property’s value, so you’ll only need a 5% deposit. However, low-deposit loans come with additional costs, such as higher interest rates (Standard interest rate + Low Equity Margin) and the need for mortgage insurance. A registered valuation may also be required.

2. How much can you afford to repay?

Assessing Your Cash Surplus:

Lenders evaluate your ability to repay by assessing your Uncommitted Monthly Income (UMI) based on various factors:

  • Income sources (salary, rental income, investments, etc.)
  • Living expenses (insurance, rates, childcare, groceries, vehicle, etc.)
  • Other debts (credit card limits, car loans, personal loans, student loans)

Each lender has their own method of calculating your UMI and specific requirements. It’s important to have enough monthly cash surplus to ensure you can continue meeting loan repayments in case of future uncertainties, such as income reduction or increased interest rates.

Loan Repayment Calculator

3. How Twine financial advisers can help

We have partnered with all major banks and lenders in New Zealand, giving you access to a variety of options. Our experienced mortgage advisers can easily calculate and recommend a lender that suits your unique needs. By working with us, you’re not limited to just one lender—we provide personalized solutions based on your financial situation.


Getting a pre-approval

Once you’ve accumulated your deposit, and all your ducks are in a row, it’s time to secure a pre-approval with the bank. 

Your Twine adviser will prepare and submit your application to the lender. Since we understand your finances and your objectives, we’ll recommend a lender that suits your needs and offer banking products that help you save and pay down your mortgage faster.

Getting a pre-approval ensure precisely how much the bank will lend you before you start house hunting. This not only save time but it allows you to move quickly and make an offer on properties you want – giving you that competitive edge.

What’s included?

  • Review and collate all your necessary documents
  • Recommendations of suitable lender for you
  • Underwriting and submission your application to the lender
  • Negotiate with the lender the most favourable terms

Optimise your mortgage structure

Now that you’ve found the home that ticks most of your boxes, and your offer has been accepted, the final step is to optimise your mortgage structure.

By optimising your mortgage structure, it can help you save money on interest payments and pay off your loan faster. With various options available, determining the ideal combination of fixed and floating interest rates for your unique situation, and the duration of those rates, can be challenging.

But drest assured, our Twine advisers are experts in creating mortgage structures that align with your specific needs and goals. Whether you’re looking to pay off your mortgage rapidly, invest in additional properties, launch a new business venture, or start a family, our experts have got you covered.

So relax and leave it to the experts!

What’s included?

  • Advice and discussion with you to help you understand how to best structure your mortgage that suits your needs and goals.
  • Negotiate with the lender the most favorable interest rates and cash incentives for you

Take the next step toward owning your first home

Our specialist mortgage advisors are here to help you through every step of your home buying journey.