First home buyers look to think outside the box on deposits

Saving for a deposit can often seem like an insurmountable hurdle when you’re looking to buy your first home.

Loan-to-value ratios (LVRs) requiring first home buyers to save at least 20 percent of the value of the house they wish to buy have made climbing onto the property ladder even more difficult. Even in a climate of low interest rates, KiwiSaver help, and a relatively flat housing market, the size of a deposit is still an obstacle for many first home buyers.

That means first home buyers are looking to get creative to achieve their goal.

Canstar General Manager Jose George says: “First home buyers may need to reshape their expectations and think outside the box when looking to save for a deposit. We’re seeing some buying cheaper properties outside the main centres, renting them out and using the capital gains to put down for their own home.

“Some first home buyers are also looking at buying a smaller first home and living on a tight budget to achieve the savings they need for a deposit,” says Jose George.

This year, Canstar is delighted to announce that ASB has won its Bank of the Year - First Home Buyer Award Winner.

“With first home buyers making up about a third of the mortgage market, this is an area of intense competition for banks. With its strong pricing options and its guidance through the house buying process, ASB stands out in its support for first home buyers,” says Jose George.

ASB retail product general manager Glen Martin says the award is recognition of the work ASB has
done in the first home buyer market in particular.

“Buying a first home is an incredibly exciting time but it can also be quite stressful. We’ve spent a lot
of time making sure we’re providing the best products and tools for first home buyers, combined
with a team of people who are passionate about giving quality guidance and advice. We want to
make this process easy and enjoyable, so it’s exciting to have our work recognised by Canstar,” says Glen
Martin.

For further information and for a full copy of the First Home Buyer Award 2019, please click here

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