[lattner]

Hi all,

As per the article from the below link,

http://www.nzherald.co.nz/section/8/story.cfm?c_id=8&objectid=10395999

....Under this scheme, low-income, first-time home buyers have been able to borrow up to $150,000 without a deposit, with the Government acting as guarantor.....The Government has agreed to increase the limit for lending with no deposit to $200,000.

Just wondering what you guys think of the government HLS?

[katandbob]

theres a government site called www.welcomehomeloan.co.nz and they have an online page to see if you are eligible, we were on our wages - I am guessing most Kiwis will! but because we have some savings for a deposit we cant claim it - you have to have no money for a deposit for houses under $200,00 or 15% of the deposit in savings to be able to apply for houses 200 to 280,000 - but may still apply for the loan - I think there are rules about not selling it for so many years etc but Kiwi bank are one of the banks that are offering this.

It may be useful for those who don't have a lot of cash left over after the move over....OR to OUR CHILDREN - who will not be as fortunate to have the £££ brought over from the UK

Kat

[Moorf]

Is this loan is available for those with PR? I couldn't see anything to clarify on the site... assumed New Zealanders only.

[jess]

Looks like PR will do...Who qualifies?
If you're borrowing either on your own or with one other person, your household income can be up to $85,000. Or if you're borrowing with two or more people, your household income can be up to $120,000.

You'll need to be a New Zealand Resident or Citizen and not already own a home. You'll also need to have an acceptable credit history, and you'll be required to live in the house you buy for the life of the loan.

http://www.tsb.co.nz/lending/welcome_home_loan.php

[Moorf]

Thanks Jess! That makes life a lot easier for a few folk who aren't coming over with wads....

[KD17]

You'll need to be a New Zealand Resident or Citizen and not already own a home

Would this mean own a home in NZ, or own a home anywhere in the world?

details, details... ;)


K&D

[lattner]

Hi jess, do you mean to apply for this scheme, a person has to have an annual income of $85,000 or is it below?

[StevieD]

And live in the house for the life of the loan!!!

[zardell]

And live in the house for the life of the loan!!!


Yes, I read that too, but thinking about it, I'm presuming that the 'life of the loan' will mean the period of time it takes to repay the loan, so that would therefor include the selling of the property and repaying any outstanding monies still owed on the property.

In other words, you can't use the scheme in a proposed 'buy to let' situation.

But, I'll stand corrected...........

Julie

xx

[jess]

Hi Lattner - As I read TSB's info, you can have no more than $85,000/yr in total income. If you are borrowing with one other person, you can have income of no more than $85K/yr. total when you add both your salaries together. They want to use the program for one or two borrowers who make $85K or less. If you have more money than that, they figure you don't need the loan help as much.

Julie - I bet you're right. I hadn't thought of that. I pictured someone having to live in the same house for 15+ years. :confused: But I'm sure you must be right. That's just a clause to keep people from moving out and renting the place while still paying on the loan.

[Singel]

House prices soaring :no
http://www.nzherald.co.nz/section/story.cfm?c_id=1&ObjectID=10397124

Not sure whether this new scheme will help or make thing worse :confused:

[lattner]

Thanks for the infor jess.

Hi Singel, regarding the soaring house prices, I have read in a book that the house prices in Auckland are overvalued and the prices does not reflect the real worth of the property and is predicted that the property market will go bust. However his prediction is well over 2 years late and the housing market in Auckland is leveling. But as he says it goes in a constant cycle from boom to bust.

[katandbob]

Yes, I read that too, but thinking about it, I'm presuming that the 'life of the loan' will mean the period of time it takes to repay the loan, so that would therefor include the selling of the property and repaying any outstanding monies still owed on the property.

In other words, you can't use the scheme in a proposed 'buy to let' situation.

But, I'll stand corrected...........

Julie

xx

No your correct, you can only use this to buy a house to live in yourself and also you can not have any savings....and also the banks may charge a small set up fee...as usual!

kat