Are You Know What are the deposit requirements for a mortgage?
Gather up your acorns
Basically, banks won't lend the full amount for a house - you need to be able to put down a deposit, and the more the better. You may be familiar with 20% as the magic number, but the reality is if you're in a strong financial position we can work with as little as 5% deposit. Most people will need around 10% deposit, and if you can fork out a whopping 20%, you'll access the banks' most competitive rates and avoid low equity fees.
If you've got high income but low deposit, you could be eligible for Launchpad, Squirrel's own home loan product for first home buyers that allows buyers to get into home ownership with as little as 5% deposit. Find out if you're eligible here.
If you're a first home buyer you can withdraw KiwiSaver contributions made by you and your employer to use as a deposit towards your new home if you meet these conditions:
- have been a KiwiSaver scheme member for at least three years;
- be planning to live in the house for at least six months, and
- be buying your first home.
First Home Grant
In addition to KiwiSaver, if your household income is less than $150,000 and you are buying for less than $625,000 (or building new for less than $700,000) in Auckland, you may be eligible for a First Home Grant of up to $5,000 per borrower.
Kainga Ora First Home price caps in Wellington are $650,000 and $550,000, and in Christchurch they are $550,000 and $500,000.
You can find out more about these options in our --> (aka your new bible). But what if you earn above the price caps? Glad you asked.
With Launchpad, a home loan product created by Squirrel, if you've got high income you could buy your first home with as little as 5% deposit and shoot into home ownership faster. We’ve tailored this towards those of you who don’t quite fit in the banks’ box or the Kainga Ora scheme, haven’t got access to the ‘bank of parents’ but are able to afford the mortgage .
Buy with as little as 5% deposit *