First home buyer award: What a difference a decade makes

media release

What a difference a decade makes

CANSTAR announces first home buyer award.

• The average mortgage repayment on a median property in New Zealand has increased 97% over the past decade

• Inflation over the same period of time has been just 28.5%

Over the past ten years the average mortgage repayment in New Zealand has almost doubled, against a backdrop of inflation at just 28.50%. While this does not affect established property owners, first-home buyers are no doubt feeling the pressure, with the loan size on a median-priced property in Wellington rising to $316,000 and in Auckland $424,800.

Paying rent, saving for a deposit and trying to find an affordable property to buy can be both an exciting and stressful exercise and financial institutions that offer targeted first home buyer products, as well as a strong level of support, education and accessibility, can make the first home struggle a great deal easier for young New Zealanders. Recognising this need, CANSTAR set up its first home buyer award three years ago to encourage and reward those financial institutions which made a significant effort to cater for these customers.

“It’s heartening to see a number of institutions taking particular care to address the special needs of first home buyers,” says CANSTAR General Manager – New Zealand, Derek Bonnar. “For many young New Zealanders, trying to enter the property market is the first time that they have really had to sit down and negotiate with their financial institution. It can be a confusing and difficult time and banks which help to make that process easier should be applauded.”

Who offers excellent first home buyer service?

“Kiwibank has reinforced the outstanding value for money that it offers first home buyers, winning the CANSTAR First Home Buyer award for the third year in a row – a hat trick,” says Mr Bonnar. “They have a great combination of competitive products and a really extensive range of educational material including calculators, budgeting tools, checklists and case studies.”

Mr Bonnar cites Kiwibank’s variable mortgage interest rate, which was the cheapest across the financial institutions surveyed. “Kiwibank had an average variable rate of 5.5% over the six month period surveyed,” he says. “They also had the lowest two-year fixed rate, at an average of 5.25%.”

“In addition to price, Kiwibank offer some excellent educational material for prospective buyers. Their personal financial management service (Heaps!) is a fantastic resource that includes a comprehensive first home buyers’ guide. A better educated and informed buyer is likely to make a better purchase decision and to choose a financial product better suited to their needs. We congratulate Kiwibank on their win.”

Consumers can download the first home buyer award report on www.canstar.co.nz

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