With New Zealand's general election on 7 November 2026, you might be wondering whether to buy your first home now or wait to see what happens.

Election policies could affect your homebuying options, but proposed changes aren’t guaranteed to happen. It’s worth understanding what’s on the table to understand your options now.

Here's what to consider before deciding whether to move ahead with your first-home plans.

## Could the NZ election change your first-home buying options?
One proposal worth watching is [National's plan to expand the First Home Loan scheme.](https://www.national.org.nz/news/260906-backs-first-home-buyers)

If re-elected, National has proposed raising the scheme's income cap to $300,000. This could allow more eligible buyers to apply for a home loan with a deposit as low as 5%.

Under the currently published criteria, the income cap is $95,000 for a single buyer without dependants and $150,000 for a single buyer with dependants or multiple buyers combined.

Under the [current First Home Loan eligibility criteria](https://www.kaingaora.govt.nz/en_NZ/home-ownership/first-home-loan/), the income cap is $95,000 for a single buyer without dependants and $150,000 for a single buyer with dependants or multiple buyers combined.

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      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left; font-weight: bold;">Current income caps criteria</th>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left; font-weight: bold;">National's Proposal</th>
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        $95,000 or less for a single buyer without dependants
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        $300,000 to all applicants
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      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">
        $150,000 or less for a single buyer with dependants or multiple buyers combined
      </td>
    </tr>
  </tbody>
</table>

## Should you buy your first home before or after the election?
Rather than focusing solely on the election, look at your financial situation and the options currently available to you.

The right timing depends on your budget, your readiness to buy and whether upcoming policy changes could affect your eligibility.  

**Buying now may make sense if:**
- You've saved enough for your deposit and explored your borrowing options.
- You've found a home you can comfortably afford which fits your needs and budget.

**Waiting may make sense if:**
- You need more time to build your deposit or get your finances in order.
- A proposed policy change could affect your eligibility for a home loan.


## What can you do now while waiting for the NZ election?
You can prepare for your first home without committing to a purchase straight away.

**•	Check your deposit options.** A 20% deposit isn't the only possible route into homeownership. Eligible buyers may be able to apply for a First Home Loan with a 5% deposit, subject to the scheme's criteria and lender approval.

**•	Review your KiwiSaver.** If you've been a KiwiSaver member for [at least three years](https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/getting-my-kiwisaver-funds-early/getting-my-kiwisaver-for-my-first-home), you may be eligible to withdraw savings for your first home. Check the requirements with your provider.


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We can help you understand your current position and work out what you need to get into your first home.  
  </p>

  
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**•	Work out what you can afford.** Factor in mortgage repayments, rates, insurance, maintenance and other regular expenses.

**•	Understand your borrowing options.** A mortgage adviser can help you explore suitable home loan options and understand what you may be able to borrow.

**•	Keep your options open.** Understand what you can do under the current rules while keeping an eye on possible changes.

You don't need to predict the election outcome to prepare for your first home. 

Just remember, waiting doesn't guarantee lower house prices, cheaper mortgage rates or better lending options.

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<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

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Should You Wait Until After the NZ Election to Buy Your First Home?

Earlier this week, we looked at [how New Zealand’s housing affordability has improved.](https://tella.co.nz/blog/is-nz-housing-affordability-back-to-normal) That’s great news for your deposit goals. 

But finding a house that fits your price range is only half the battle.

Before a bank approves your pre-approval, they pull your credit report. If your file has hidden liabilities, your borrowing power can stall out, no matter how healthy your deposit looks.

Taking the time to spring clean your credit score now protects your options before open homes get packed. 

Here’s how to do it.

## 1. Pull all free NZ credit reports
NZ has three major credit bureaus: **Centrix, Equifax, and Experian (formerly illion).** Lenders don't all look at the same one, meaning a default or an error sitting on a Centrix file might be entirely absent on Equifax.

Under the Privacy Act, you have a legal right to request your full credit report from each agency for free. 

Skip the paid ‘instant score’ upsells, [order the free reports](https://tella.co.nz/home-loans-mortgages/first-home-buyer/home-loan-mortgage-credit-score), and check for outdated defaults or incorrect account histories.


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    We can walk through your credit history with you and help you spot anything that might trip up a lender.
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## 2. Slash your credit card limits
Banks don't just care about what you owe on a credit card; they care about the maximum limit available to you. If you have an unused $10,000 credit limit sitting in your wallet, lenders view it as potential debt.

Trimming your limits or wiping out Buy Now, Pay Later (BNPL) accounts frees up immediate borrowing capacity on paper.

## 3. Automate your bills and your payday
Your payment history shapes your credit score. Your cash flow shapes your deposit speed. Automating both removes the admin errors, and the temptation to spend.

- **Set it and forget it.** Set up direct debits for everything, so your file shows an unbroken track record.

- **Pay yourself first.** Set an automatic transfer to move your deposit savings into a separate account the moment your salary lands—before you can spend it.
 
## 4. Hit pause on new credit applications
Every time you apply for a personal loan, a car finance deal, or a [new credit card](https://tella.co.nz/home-loans-mortgages/first-home-buyer/credit-card-management-home-loan), it logs a ‘hard inquiry’ on your credit report.

Piling up multiple inquiries in the months leading up to a house purchase sends a jittery signal to lenders. 

Keep your financial footprint completely steady until your home loan is signed, sealed, and delivered.

### The Takeaway
Banks look at every detail before approving a loan. 

Getting your credit file spotless before you start house-hunting prepares you to bid with absolute confidence.

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<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

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How to Clean Up Your Credit Score NZ.png

4 Ways to Spring Clean Your Credit Score Before House-Hunting

[If you read our piece](https://tella.co.nz/blog/kiwis-are-raiding-their-kiwi-saver-just-to-get-by) on why more Kiwis are turning to KiwiSaver hardship withdrawals right now, you'll know it's not an easy option to qualify for, and it comes at a real cost to your retirement down the line. 

Every dollar you take out is a dollar (plus years of compounding) gone from your retirement. 

That doesn't mean you shouldn't use it if you genuinely need to. It means it's worth checking what else is available first.

So before you get to that point, here are 4 things worth checking first.

## 1. Talk to Your Lender About a Mortgage Repayment Holiday
If your mortgage is the biggest pressure point, most banks offer repayment holidays or restructuring options. That means pausing or reducing payments for a set period while you get back on your feet.

It won't fix everything, but it can buy genuine breathing room without touching your KiwiSaver at all.


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  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Not sure where to start? 
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    Our financial adviser can talk to your lender directly, walk you through a repayment restructure, and lay out exactly what it means for your loan. 
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    Book a no-pressure chat with our financial adviser
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## 2. Get Free Budgeting Advice Before You Apply
Financial mentors, through services like [MoneyTalks](https://fincap.org.nz/moneytalks), can often find money in your budget you didn't know was there, negotiate directly with creditors on your behalf, and point you toward hardship grants you might not know exist.

It's free, confidential, and often faster than people expect.

## 3. Check What Government Support You Might Be Missing
Work and Income offers special needs grants, benefit advances, and other forms of assistance that don't touch your retirement savings at all.

A lot of people don't check this step simply because they don't know it's there.
 
## 4. Consider a KiwiSaver Contributions Holiday, Not a Full Withdrawal
If ongoing contributions are what's squeezing your weekly budget, you can apply to reduce or pause them temporarily, rather than withdrawing a lump sum you can't put back.

It's a smaller, more reversible step and it keeps your existing balance untouched and still compounding.

## The bottom line
A [KiwiSaver](https://tella.co.nz/blog/how-the-kiwi-saver-gender-gap-is-slowing-down-first-home-buyers) hardship withdrawal should be your last option, not your first. 

If you've got a bit of time before you need the money, these alternatives are worth ten minutes of checking first.

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<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

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4 Alternatives Worth Trying Before Withdrawing Your KiwiSaver for Hardship

_(Source : NZ Adviser)_

If you've ever thought about topping up your deposit with a bit of help from [mum and dad](https://tella.co.nz/home-loans-mortgages/helping-the-kids-buy-a-home) for your next home, a rental, or that investment property you've been eyeing, a recent Court of Appeal decision just made it a lot more important to get that conversation in writing.

## The case

On 29 July 2026, NZ Adviser reported on a [Court of Appeal decision that put this exact question to the test.](https://www.mpamag.com/nz/specialty/residential/court-of-appeal-parental-help-defaults-to-gift-not-loan/584108)

The dispute centred on an Auckland investment property. Back in 2012, a woman in her early 30s bought the property with help from her parents, who contributed around 10% of the purchase price. She funded the rest herself through savings and a bank loan.

Years later, her parents asked her to transfer the property to them, arguing it had always been meant to be theirs. The woman refused and the parents took it to court, claiming she was holding the property on trust for them.

Both the High Court and the Court of Appeal ruled the money was a gift. The parents lost the case and were ordered to pay their daughter's costs.

## Is a gifted deposit legally a gift or a loan in NZ?

Under New Zealand law, there's a long-standing rule called the presumption of advancement. It means:

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    <li style="margin-bottom: 12px;">Money given by a parent to their child is assumed to be a gift, not a loan.</li>
    <li style="margin-bottom: 12px;">This applies even if the child is a financially independent adult.</li>
    <li style="margin-bottom: 0;">The parent must prove otherwise if they later want the money back.</li>
  </ul>
</div>

This isn't a new law, but a recent Court of Appeal case just confirmed it still applies today, and it applies to [investment properties](https://tella.co.nz/home-loans-mortgages/property-investment) too, not just first homes.
 
## Why this matters if you're buying your next home or an investment property

If family money goes into your next purchase and nothing is written down, the default legal position is simple: it's yours, no strings attached, even if that's not what everyone quietly assumed at the time.

That might sound fine if you're the one receiving the money. But it gets messy fast if:

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    <li style="margin-bottom: 14px;">Your parents actually expect to be repaid.</li>
    <li style="margin-bottom: 14px;">Your parents want an ongoing stake or interest in the property.</li>
    <li style="margin-bottom: 14px;">You're buying with a partner, and the money's source could matter later (e.g. separation).</li>
    <li style="margin-bottom: 0;">You're building an investment portfolio and want clean, defensible records for the bank, your accountant, or future refinancing.</li>
  </ul>
</div>

Good intentions don't hold up in court. Documentation does.

## What to do next

If you're planning your next move (whether that's upgrading, downsizing later on, or building an investment portfolio) and family money is part of the picture, this is the moment to have the conversation properly rather than assume everyone's on the same page.

We'll cover exactly [5 steps you should not skip when using family money for your next home or investment property](https://tella.co.nz/blog/using-family-money-for-your-next-home-or-investment-property-don-t-skip-these-5-steps), without turning a generous gesture into a family dispute.


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<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
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Is a Gifted Deposit a Loan in NZ? Court Confirms No

[Westpac has raised its fixed home loan rates for 1-to-3-year terms](https://www.interest.co.nz/personal-finance/139554/first-crack-dam-appears-red-bank-raising-home-loan-and-some-term-deposit)—the first fixed-rate move since the Reserve Bank hiked the OCR back on 8 July. 

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  <h3 style="
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      Through June
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      <p style="font-size: 15px; line-height: 1.6; color: #444; margin: 0;">
        Most banks were cutting fixed rates, competing on cheaper funding costs.
        (see our <a href="https://tella.co.nz/blog/rolling-off-a-fixed-term-major-banks-are-slashing-rates" style="color: #10059f; text-decoration: underline;">earlier piece on the June rate cuts</a>)
      </p>
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    <div style="width: 110px; flex-shrink: 0; font-weight: bold; font-size: 15px; color: #10059f; padding-top: 2px;">
      8 July
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    <div style="width: 20px; flex-shrink: 0; display: flex; flex-direction: column; align-items: center;">
      <div style="width: 12px; height: 12px; border-radius: 50%; background: #10059f; flex-shrink: 0;"></div>
      <div style="width: 2px; flex-grow: 1; background: #10059f; margin-top: 2px;"></div>
    </div>
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      <p style="font-size: 15px; line-height: 1.6; color: #444; margin: 0;">
        The Reserve Bank hiked the OCR. Floating rates jumped straight away — fixed rates didn't move.
        (see our <a href="https://tella.co.nz/blog/rbnz-ocr-hike-3-smart-steps-to-structure-your-mortgage-refix-now" style="color: #10059f; text-decoration: underline;">OCR hike refix guide</a>)
      </p>
    </div>
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      27 July
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    <div style="width: 20px; flex-shrink: 0; display: flex; flex-direction: column; align-items: center;">
      <div style="width: 12px; height: 12px; border-radius: 50%; background: #10059f; flex-shrink: 0;"></div>
    </div>
    <div style="padding-left: 16px;">
      <p style="font-size: 15px; line-height: 1.6; color: #444; margin: 0;">
        Westpac reversed course and raised its 1-to-3-year fixed rates, undoing those June cuts.
      </p>
    </div>
  </div>
</div>
Other banks haven't followed yet, but they're expected to.

Here's what that means if you're pre-approved and still buying.

## What Actually Changes If You're Pre-Approved

Here's the thing most people don't realise pre-approval locks in how much you can borrow—not your rate. 

Your actual rate only gets set when you fix the loan, which usually happens around settlement, not when you were first approved.

So, if you got pre-approved before this week, and Westpac's rate rise applies to your bank or loan term, the number you budgeted with might not be the number you actually get. 

That's not a reason to panic. It's a reason to check.

## What to Do If You're Pre-Approved for a Home Loan Right Now

Whichever bank you're with, here's where to start:

### 1. Check Your Exact New Rate If You're with Westpac

Don't assume the headline applies evenly across every term. Ask our mortgage adviser for the specific number on your loan term, then re-run your repayment numbers against it—not the figure you first budgeted with.

### 2. Don't Assume You're in the Clear If You're with Another Bank
 
Once one major bank moves, others typically follow within weeks. Treat this as your heads-up to check in now, rather than waiting until it's officially your bank's news too.


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Not sure if this affects you yet?</h3>
  
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    We'll check your bank, term, and timeline against what's actually changed, no obligation.
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### 3. Re-Check Your Approved Borrowing Amount, Not Just Your Repayments

A higher rate can affect what you're approved for under serviceability tests. Worth confirming this hasn't shifted too, whichever bank ends up applying to you.

**Use our [repayment calculator](https://tella.co.nz/home-loans-mortgages/calculators) to see what last week's rate change means for you.**

### 4. Ask About Rate-Lock Options

Some lenders let you lock in a rate ahead of settlement for a small fee. Worth asking now if you're close to an offer, regardless of whether your bank has moved yet.

### 5. Get Our Mortgage Adviser Looped in on Timing
Whether you're reacting to a change that's already happened or getting ahead of one that hasn't, the earlier the conversation, the more options you have.
 
## Bottom line

If you're pre-approved and still buying, a rate rise headline is worth a five-minute check-in, not a five-day panic. 

The fastest way to know exactly where you stand is to confirm your actual rate and re-run your numbers, rather than working off what you first budgeted with.

<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

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Westpac Just Raised Fixed Rates. What It Means If You're Pre-Approved

The buzz around new builds is hard to miss right now.

According to the latest Stats NZ data up to May 2026, [annual building consents shot up 19%,](https://www.stats.govt.nz/news/annual-number-of-home-consents-up-19-percent/) led by a 22% jump in townhouses, flats, and units. And for good reasons!

Buying a new build means skipping the high-stress weekend auction scene entirely for a move-in-ready and energy-efficient home, with zero hidden maintenance surprises down the road.

Yet, there is one question we constantly hear from homebuyers:
_“How do I know my deposit are actually safe while the home is being built?”_

It is a completely fair question. But here is the good news: 

NZ banks don't just hand over cash blindly. Instead, the whole lending process is built around strict milestones designed to keep your money perfectly secure from the first shovel in the ground to the day you get your keys. 

Here is a breakdown of how this step-by-step system works behind the scenes to look after your wallet and give you total peace of mind:

## 1. Pre-Approval: Your Financial Baseline

Before you visit show homes or sign paperwork, the bank reviews your income and deposit to figure out your maximum borrowing limit.

**Why it protects you:** It stops you from falling in love with a property you can’t afford. It also gives us as your mortgage adviser a baseline to safely adjust your files if bank rules or [interest rates](https://tella.co.nz/home-loans-mortgages/rates) shift while you shop.

## 2. Stamped Plans: Your Built-In Due Diligence

When you buy off-plan, you sign a contract based on blueprints. 

However, Kiwi banks will not issue a final, unconditional loan approval until the local council formally stamps and issues the Building Consent.

**Why it protects you:** The bank acts as your personal guard. They ensure you aren't financially locked into a project that can't actually be built. If the developer runs into initial planning issues, your money stays safe.


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
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    We focus on keeping your borrowing power secure and ensuring your bank approvals stay safely active until moving day, so you can sit back and watch your new home take shape.
  </p>
  
  
  <a href="https://calendly.com/tella-adviser" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert today
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</div>

## 3. 'As-If-Complete' Valuation: Your Equity Shield

Once council stamps the plans, a registered valuer looks at the blueprints and finishes to calculate exactly what the home will be worth once it's built.

**Why it protects you:** It proves you aren't paying more than the home is actually worth, giving you total confidence that your equity is protected before construction even begins.

## 4. Progressive Drawdowns: Controlling the Cash Flow

If you opt for a bespoke build contract rather than a turnkey package, the bank releases your loan in stages instead of one lump sum.

**Why it protects you:** You only pay for work that is physically finished. [With NZ build costs rising](https://www.mpamag.com/nz/news/general/construction-costs-climb-as-consents-rise-housing-stabilises/562044), this keeps the builder strictly accountable. If a builder fails a council site inspection, the bank freezes the cash.

## 5. Code Compliance (CCC): The Ultimate Finish Line

Even when the scaffolding comes down and the house looks ready, you cannot legally collect the keys until the council issues the formal Code Compliance Certificate (CCC).

**Why it protects you:** The developer doesn't get their final payout until the council confirms the home is 100% legal, safe, and compliant. If there are last-minute defects, the bank keeps your money safe until they are fixed.

## Let's Build Your Financing Strategy

Stepping into a brand-new home remains one of the smartest property moves you can make in the current market. But navigating the timeframes doesn't have to be stressful.

The whole system is set up with built-in safety nets from your bank and the local council that keep your risk incredibly low. 

Once you see how these steps work together to look after your wallet, you can watch your new home take shape with total confidence and zero guesswork.


<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_12. How Bank Rules Protect New Buildso Win Market.png

thumbnail_12. How Bank Rules Protect New Buildso Win Market.png

New Builds NZ.png

Buying a New Build? How Bank Rules Actually Protects Kiwi Homebuyers

While many remain sidelined by uncertainty, first-home buyers have become the most active group in the New Zealand property market. 

According to the June 2026 Housing Chart Pack from property data firm Cotality, first-home buyers accounted for [27.7% of all purchases in the first five months of 2026.](https://www.cotality.com/nz/insights/articles/monthly-housing-chart-pack---june-2026)

If you’re looking to get the keys this year, here are five practical ways you can follow their lead.

## 1. Utilising KiwiSaver savings

Successful buyers have stopped treating [KiwiSaver](https://tella.co.nz/home-loans-mortgages/first-home-buyer/kiwisaver-first-home-grant) as a ‘set-and-forget’ retirement fund. They treat it as a deposit tool.

**The Strategy:** Grab an eligibility estimate from KiwiSaver provider months before even start looking. Having that hard number in hand means knowing exactly what you can afford before walking into an open home, helping you move faster than the competition.

## 2. Leveraging the Quiet Market for Negotiation

With overall market sales volumes down, the frantic 15-minute bidding wars of the past have largely disappeared.

**The Strategy:** Because these buyers come to the table with pre-approved finance, they can submit 'clean' offers. Sellers love this certainty, often giving first home buyers the edge to negotiate for extras like building reports or professional cleaning.


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Ready to see what’s possible for your budget?</h3>
  
  <p style="color: #ffffff; margin-top: 0; margin-bottom: 15px; line-height: 1.5;">
    See how you can navigate the market with a strategy that works for you.
  </p>
  
  
  <a href="https://calendly.com/tella-adviser" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert today
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</div>


## 3. Prioritising ‘Turnkey’ Value

First home winners are choosing certainty over the ‘fixer-upper’ fantasy.

**The Strategy:** Buyers are hunting for modern and energy-efficient townhouses or well-built units that don’t need renovations. This way, there’s no risk of budget blowouts, allowing them to settle in with total peace of mind.

## 4. Running the ‘Rent vs. Mortgage’ Math

Instead of worrying about interest rates, they think about the long term: they’d rather use their money to build their own wealth than keep paying off someone else’s.

**The Strategy:** Unlike rent, which goes up every year, a mortgage payment stays stable. By buying, they escape the cycle of rent hikes and turn their monthly payments into an investment in their own future.

## 5. Using Data Tools to Move Fast

Successful buyers don't work off gut feeling; they know their numbers inside out to stay agile.

**The Strategy:** Use online calculators to stress-test their own budgets against fluctuating rates. Get an instant estimate using our [First Home Deposit Calculator](https://tella.co.nz/home-loans-mortgages/calculators/first-home-deposit), or compare current rates across the market via our [interest rate comparison table](https://tella.co.nz/home-loans-mortgages/rates) to ensure you aren't leaving money on the table.

Stop waiting for the ‘perfect’ time to buy. 

The most successful buyers are the ones who show up with a plan and start building their own equity. 

If you’re ready to stop watching from the sidelines, let’s run the numbers and see how we can get you into your first home.

<iframe width="560" height="315" src="https://www.youtube.com/embed/04WriNTe2To?si=5PAIS46wdqzoOf09" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>


<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_7. Kiwisaver'26 - June 30.png

thumbnail_7. Kiwisaver'26 - June 30.png

First Home Buyer Winning in 2026.png

5 Practical Ways First-Home Buyers Are Winning in 2026

Right now, [60% of Kiwi women](https://www.stuff.co.nz/money/360987631/almost-all-newly-eligible-kiwisaver-members-are-set-miss-government-contribution) are on track to leave free government cash on the table this year. It’s easy to assume people just forgot to check their accounts, but the reality runs much deeper.

This isn't just a case of women not understanding the system; it’s a structural gap that directly impacts their ability to buy a house. 

Because KiwiSaver forms the bedrock of most deposits, this missing cash puts women at a massive disadvantage, forcing them to borrow more, pay higher interest, and work twice as hard just to get a foot in the door.
 
## The Numbers Behind the Gap

Recent data from the [Retirement Commission (Te Ara Ahunga Ora)](https://retirement.govt.nz/policy-and-research/kiwisaver) highlights a stark reality in New Zealand's wealth accumulation. 

Across the board, the data from 2025 shows a massive gap right from the start. On average, a Kiwi man has $47,452 tucked away in his KiwiSaver, compared to just $38,212 for a woman. That’s a flat 24% deficit across all age groups combined.

During the prime years when young Kiwis are trying to pull together a first home deposit, the gender disparity trails them across every age bracket:

<table style="width: 100%; border-collapse: separate; border-spacing: 8px; font-family: sans-serif; background-color: #fdf2f5; color: #000033;">
  <thead>
    <tr>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">Demographic / Age Bracket</th>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">Female Average</th>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">Male Average</th>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">The Disparity Gap</th>
    </tr>
  </thead>
  <tbody>
    
    <tr>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-weight: bold;">Ages 18–25</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">$10,035</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">$12,116</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-style: italic;">Women have 17% less</td>
    </tr>
    
    <tr>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px; font-weight: bold;">Ages 26–30</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">$20,014</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">$23,891</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px; font-style: italic;">Women have 16% less</td>
    </tr>
    
    <tr>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-weight: bold;">Ages 31–35</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">$24,279</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">$29,991</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-style: italic;">Women have 19% less</td>
    </tr>
    
    <tr>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px; font-weight: bold;">Ages 36–40</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">$30,328</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">$38,430</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px; font-style: italic;">Women have 21% less</td>
    </tr>
  </tbody>
</table>


While a difference of a few thousand dollars might look like a minor setback on paper, it has immediate, real-world consequences for anyone trying to break into the property market today.

## Why Does This Disparity Exist?
 
The data shows that women actually contribute to their funds at similar percentage rates to men. 

The deficit isn't a lack of saving discipline; it's a reflection of structural income milestones:

**1.	The Compound Effect:** The savings gap begins opening as early as age 19 and rapidly accelerates during prime career years.

**2.	Workforce Breaks:** Time taken out of the workforce for parental leave or shifting to part-time/casual hours pauses employer contributions.

**3.	The Confidence Gap:** Statistical trends show women are often placed in more conservative funds by default, missing out on higher-growth market returns.

## The Real Cost on Your Mortgage

Because the vast majority of[ first home](https://tella.co.nz/first-home) buyers rely heavily on their KiwiSaver to form the core of their deposit, a lower balance directly impacts your buying power in three major ways:

**•	⏳ Delayed Home Ownership:** Missing out on thousands in compounding returns means taking months—or even years—longer to save a competitive 10% or 20% [first home deposit](https://tella.co.nz/home-loans-mortgages/calculators/first-home-deposit).

**•	💸 The Cost of Dead Rent:** Every extra month spent playing catch-up is another month paying a landlord's mortgage instead of building your own equity.

**•	📉 Reduced Borrowing Power:** A smaller deposit means borrowing more from the bank, forcing you to pay significantly more interest over the lifetime of your home loan.


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Unsure how to fix your settings or optimise your fund?</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
    Choosing the right fund type can dramatically alter how fast your deposit grows.
     If you want to make sure your settings actually align with your first home timeline, book a quick chat with our financial adviser team to get a personalized strategy sorted.
  </p>
  
  
  <a href="https://calendly.com/jose-tella/chat-with-a-homeloan-kiwisaver-expert" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a fee-free chat with our financial expert today
  </a>
</div>

## Protect Your Buying Power Before June 30

With the June 30th KiwiSaver deadline fast approaching, taking manual control of your fund is one of the easiest ways to close this gap.

For every $1 you manually contribute, the government adds 25c straight to your balance (up to $260.72). That is an instant, **guaranteed 25% return on your money** that goes straight toward your future front door.

**🔍 Did you know millions of free KiwiSaver cash are still unclaimed?**
Check out our recent deep dive [here](https://tella.co.nz/blog/why-millions-in-free-kiwi-saver-cash-is-going-unclaimed-this-month) (along with step-by-step breakdown on how to claim your share).

<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_8. Kiwisaver'26 - Gender Gap.png

thumbnail_8. Kiwisaver'26 - Gender Gap.png

8. Kiwisaver'26 - Gender Gap.png

How the KiwiSaver Gender Gap is Slowing Down First Home Buyers

The KiwiSaver government contribution deadline rolls around on June 30 every single year, but right now, the numbers coming out of the major providers are looking pretty alarming.

According to [fresh data](https://www.stuff.co.nz/money/360987631/almost-all-newly-eligible-kiwisaver-members-are-set-miss-government-contribution), roughly half of all eligible Kiwis are on track to completely miss out on their free Government top-up this month.

Look, there’s no denying that household budgets are incredibly tight right now. Every dollar matters. But leaving this specific money on the table is an incredibly expensive mistake. 

Let’s look at what's actually driving this trend, why it’s still worth your time, and how a quick five-minute check can score you some easy cash.

<div style="border: 2px solid black; padding: 25px; margin-bottom: 40px; width: fit-content; font-family: Arial, sans-serif;">
  <h2 style="margin-top: 0; font-size: 24px;">Data Snapshot: KiwiSaver Since 2024</h2>
  
  <p style="margin-bottom: 20px; line-height: 1.5;">
    New data from Westpac drops a massive reality check on our current savings habits. The percentage of eligible Kiwis tracking short of the full Government top-up is climbing fast:
  </p>

  <ul style="margin: 0; padding-left: 20px; line-height: 2;">
    <li><strong>2024:</strong> 48% missed it</li>
    <li><strong>2025:</strong> 49% missed it</li>
    <li><strong>2026 (Right Now):</strong> 53% are on track to miss it</li>
  </ul>
</div>


## Why Are Kiwis Missing Out on the KiwiSaver Government Contribution?

If you feel like you're struggling to keep up with your contributions lately, you are definitely not alone. Over half of the country is in the exact same boat with just weeks left to go. 

Industry experts point to a few big reasons for this shift:

**•	The "Is it worth it?" factor:** Ever since the top government match dropped to [$260.72 last year](https://www.interest.co.nz/personal-finance/133400/kiwisaver-employer-and-employee-default-contributions-rise-4-3-while), a lot of self-employed and casual savers have just tuned out. Because the free cash injection feels smaller, people are choosing to spend or save their money elsewhere.

**•	The new $180k income cap:** This is the very [first year where if you earn over $180,000 in taxable income](https://www.booster.co.nz/blog/kiwisaver/budget-kiwisaver-changes-what-do-they-mean-for-me), you are completely locked out of the subsidy, instantly changes who is putting money in.

**•	The groups falling behind**: The data points to part-time workers, people taking career breaks, and 16 or 17-year-olds who are new to KiwiSaver. These are the main groups driving the trend and falling short of the full match.


## Calculating Your KiwiSaver Government Contribution Match

Missing this top-up isn't just about losing a quick cash injection today; it actively drags down the compounding growth of your future first-home deposit or retirement nest egg. 

Across the country, banking data shows that the total pool of unclaimed matching funds easily reaches into the hundreds of millions of dollars every single cycle.

The rule is incredibly simple: according to official [Inland Revenue KiwiSaver guidelines](https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/growing-my-kiwisaver-account/getting-the-kiwisaver-government-contribution), the Government matches 25 cents for every single dollar you personally put in, up to a specific limit.

<table style="width: 100%; border-collapse: separate; border-spacing: 8px; font-family: sans-serif; background-color: #fdf2f5; color: #000033;">
  <thead>
    <tr>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">KiwiSaver Metric</th>
      <th style="background-color: #000099; color: #ffffff; padding: 15px; border-radius: 4px; text-align: left;">The Target Figures</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-weight: bold;">Maximum free cash from the Government</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">$260.72</td>
    </tr>
    <tr>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px; font-weight: bold;">What you need to put in yourself</td>
      <td style="background-color: #ffffff; padding: 20px; border: 1px solid #ddd; border-radius: 4px;">$1,042.86 (roughly $20 a week)</td>
    </tr>
    <tr>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px; font-weight: bold;">The instant return on investment</td>
      <td style="background-color: #eee6f3; padding: 20px; border-radius: 4px;">A guaranteed 25% ROI</td>
    </tr>
  </tbody>
</table>


_<u>**A quick heads-up on what counts:**</u>
Only your personal salary deductions or voluntary lump-sum bank transfers count toward that $1,042.86 goal. Employer matching contributions do not count toward your personal total._

If you are grinding to save a **first-home deposit**, walking away from a risk-free 25% return is a massive missed opportunity. 

If you're on **minimum wage and working full-time**, your automatic payroll deductions probably have you covered. 

But if you’re **self-employed, work part-time, or recently took a savings suspension**, you need to look at your numbers manually.


## Action Plan: How To Check KiwiSaver Balance and Maximise Before June 30

If you want to make sure your money isn't part of the millions left unclaimed, here is exactly how to execute a voluntary KiwiSaver top up this week.

### 1.	Check your total personal contributions
Takes about 2 minutes. Pop open your online banking app, look at your KiwiSaver account, and see if they have a _"Government Contribution Tracker"._ If they don't, just log into your myIR account on the Inland Revenue website to see your total personal contributions from July 1 last year up until today.

### 2.	Calculate your KiwiSaver shortfall
Take your total personal contribution and subtract it from $1,042.86. Whatever is left over is the exact lump sum you need to deposit to unlock the full $260.72. Even if you can't pay the whole difference, any small amount you transfer still gets that 25% match.

### 3.	Make a voluntary KiwiSaver top up
Make a manual internet banking transfer straight to your KiwiSaver provider. Do not wait until June 30. The money actually has to clear and be fully processed by your provider by the deadline. Try to get this done 3 to 5 business days early just to be safe from bank processing delays.


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Need a hand getting your KiwiSaver sorted?</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
    Don't risk missing out on your free government top-up due to end-of-month bank processing delays. 
    Let our qualified advisers do a quick check of your contributions to maximize your matching funds before June 24th.
  </p>
  
  
  <a href="https://calendly.com/jose-tella/chat-with-a-homeloan-kiwisaver-expert" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our financial expert today
  </a>
</div>

## The Bottom Line
Living costs are high, and the financial pressure is real. 

But a guaranteed 25% boost to your long-term wealth is quite literally the easiest financial win you will get all year. 

Take five minutes this week to log in, audit your account, and make sure you claim every dollar you're owed.


<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

KiwiSaver Contribution June 30

small_KiwiSaver Contribution June 30

thumbnail_KiwiSaver Contribution June 30

Why Millions in Free KiwiSaver Cash is Going Unclaimed This Month

For a long time, trying to buy a home in New Zealand felt like a race against the clock. Property buyers faced intense pressure, facing packed open homes and competitive bidding wars just to secure a foot on the ladder.

Today, the market has finally given buyers some much-needed breathing room.

According to the latest data from the [Cotality NZ Home Value Index](https://www.cotality.com/nz/insights/articles/housing-values-tread-water-as-buyer-caution-dominates) and [May 2026  Housing Chart Pack](https://www.cotality.com/nz/insights/articles/monthly-housing-chart-pack-may-2026), the market has undergone a massive power shift. We have firmly entered a 'wait-and-see' phase—and for the first time in years, buyers are calling the shots.

Here is why this winter might be your best chance to make your move.

<div style="border: 2px solid black; padding: 20px; margin-bottom: 40px; width: fit-content;">
  <h2 style="margin-top: 0; font-size: 1.5em;">In a Nutshell: 4 Things to Know Right Now</h2>
  <p>Before diving into the strategy, here is the rapid-fire breakdown of the latest Cotality data:</p>
  <ul style="margin: 0; padding-left: 20px;">
    <li><strong>Values Are Moving Sideways:</strong> The national median house price is sitting flat at $808,187—which is exactly 17% below the market peak of early 2022.</li>
    <li><strong>The Big Regional Split:</strong> Auckland (-0.2%) and Wellington (-0.3%) values dipped again in May due to high listing numbers. Meanwhile, Christchurch (+0.4%) and Dunedin (+0.2%) continue to edge upward.</li>
    <li><strong>Sales Activity Has Slowed:</strong> National sales volumes dropped -9.0% year-on-year in April, meaning properties are taking longer to sell and buyers are taking their time.</li>
    <li><strong>Borrowers Are Playing It Safe:</strong> Over 50% of new mortgage lending is being locked into fixed terms longer than 12 months as Kiwis prioritize repayment certainty over interest rate gambles.</li>
  </ul>
</div>

## Lower Valuations: The Ultimate Green Light for Stable Earners

Because prices have leveled out, and in many areas, dropped comfortably below their 2022 peaks, the buy-in price for premium real estate is lower than it has been in years.

If you are in a secure career, earning a comfortable salary, and have your household expenses under control, this is a prime window.

Instead of trying to time the absolute bottom of the market, secure earners are realizing that current valuations give them the leverage to buy better properties for less money, without the stress of a ticking clock.

## What the Data Means for Your Situation

The flat national median of $808,187 and the current influx of properties aren't just empty statistics. They create very specific, practical opportunities depending on your buying goals.

### 1.	First-Home Buyers
With [first-home buyers](https://tella.co.nz/home-loans-mortgages/first-home-buyer) currently making up a massive 28.2% of all property transactions (and over 30% in Auckland), you are officially the engine of the market.

The data shows large-scale investors are stepping back due to high test rates, leaving a clear runway for everyday buyers.

**Your Strategy:** Because houses are sitting on the market longer (sales volumes are down 9.0%), skip the panic. Take your time to run building reports, compare townhouses, and add standard finance clauses to protect yourself.

### 2.	Next-Home Movers
Current data shows that overall market values have dipped 17% below their 2022 peak, which has caused many current homeowners to freeze out of fear of losing equity.

However, if you are trading up to a larger property, flatter valuations actually work heavily in your favor.

**Your strategy :** Do the upgrade math. If the market drops 5%, a $1.2M home drops by $60,000, while your $800k home only drops by $40,000. By moving now, the net gap to buy your larger home just shrunk by $20,000, making this the cheapest time to upgrade.



<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Buy-and-sell math gets confusing fast.</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
   The team at Tella can calculate your exact upgrade gap and map out your bridging finance options so you can shop with confidence.
  </p>
  
  
  <a href="https://calendly.com/tella-adviser" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert
  </a>
</div>

### 3.	Property Investors
With national values moving sideways and regional supply hitting record highs in Auckland and Wellington, capital-gains has slowed down.

For investors with secure income, flat valuations mean an opportunity to focus purely on buying quality assets at a relative discount.

**Your strategy:** Focus entirely on cash-flow fundamentals. Use the lack of competition on the ground to negotiate hard on price, target low-maintenance specs, and lock in stable, long-term rental yields before the cycle turns.

### 4.	Second-Chance Buyers
A flat market is the perfect environment for previous homeowners who are trying to start fresh after a life change.
Many assume that because they have owned a home before, their KiwiSaver is permanently locked away until retirement.

**Your strategy:** Apply to Kāinga Ora for an official determination letter to qualify for a [Second Chance KiwiSaver Withdrawal](https://www.generatewealth.co.nz/frequently-asked-questions/what-is-a-second-chance-withdrawal/). If they confirm your financial position matches a first-home buyer, you can unlock your funds. Slower market conditions give you the perfect timeline to get this approved and make a conditional offer without any rush.

### 5.	Co-Purchasers/Bank of Mum and Dad
Over 50% of borrowers are locking in longer fixed terms for certainty while the market sits flat. Borrowers are playing it safe due to strict bank test rates.

**Your strategy:** Pool resources with family or friends to bypass tight bank criteria, Because the market is flat, prices aren't running away from you, giving you the exact time needed to pool your KiwiSaver balances or organize a [guarantor](https://tella.co.nz/home-loans-mortgages/first-home-buyer/family-friends-home-loan-mortgage) structure without any pressure.

## Making the Market Work for You with Tella

Buying in a flat market gives you time and leverage, but unlocking the best finance structure requires a plan.
You don't have to figure out the logistics on your own. 

We'll help you map out the ideal strategy and handle all the paperwork behind the scenes. Whenever you're ready to look at your options, let’s jump on a quick call to get sorted before you hit the weekend open homes.
 

<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_6. Flat Housing Market May 2026.png

thumbnail_6. Flat Housing Market May 2026.png

NZ Housing Trend Flat Market May 2026.png

Why Flat Housing Values Make the Smartest Time to Buy a Home 

Walk into a property auction room anywhere in New Zealand right now, and you’ll notice a pretty clear trend.

As May 2026 brings cooler winter weather, it’s also cooling down the chaotic, emotional bidding wars of the past. But just because fewer properties are selling right when the hammer falls doesn't mean the market is frozen...

Instead, we're seeing two very different things happening at the same time.

If you're a First Home Buyer (FHB), today's market is actually handing you a major strategic advantage, if you know how to play it:

- **You're Spoilt for Choice:** There are plenty of houses on the market right now, which means you have the upper hand when it comes to negotiating.

- **Prices are Flat:** The latest data from the [OneRoof-Valocity House Value Index](https://www.oneroof.co.nz/news/which-suburbs-are-winning-in-2026-and-which-ones-are-flatlining-49231) shows that house values across most regions have leveled out. The frantic rush to buy before prices jump next week is officially gone.

- **A Sharp Vendor-Buyer Divide:** Sellers are still hoping for high prices, but buyers are being incredibly cautious. Because of this gap, auction clearance rates are bouncing around.

Recent figures show that the number of properties selling under the hammer dipped to [31% in mid-May](https://www.interest.co.nz/property/138550/number-properties-selling-under-hammer-dropped-below-third-latest-residential) before crawling back up slightly to [37% by the end of the month](https://www.interest.co.nz/property/138650/auction-results-bouncing-around-37-properties-offered-sold-under-hammer-latest).

To a casual observer, seeing nearly 70% of houses get 'passed in' (meaning they didn't sell at the auction) looks like a slow, cold market. But if you look a little closer, that passed-in pile is an absolute goldmine for first-home buyers who choose _not_ to bid.

Here is what auction rooms look like across the country right now, and why the smartest move you can make is to sit tight and play the post-auction game.

## The NZ Property Auction Activity Snapshot
If you look at the weekly numbers on the [Interest.co.nz Residential Auction Results](https://www.interest.co.nz/property/residential-auction-results) hub, you can see exactly where the hidden opportunities are. Keep an eye on that 'Passed-In' column—that is where the real action happens for bargain hunters:


<div style="overflow-x: auto; margin-bottom: 40px;">
  <table style="width: 100%; border-collapse: separate; border-spacing: 4px; font-family: sans-serif; font-size: 0.9em; color: black;">
    <thead>
      <tr style="text-align: left;">
        <th style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Region</th>
        <th style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Sold Under the Hammer</th>
        <th style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Passed-In (The Post-Auction Pipeline)</th>
        <th style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">What's Actually Happening</th>
      </tr>
    </thead>
    <tbody>
      
      <tr>
        <td style="border: 1px solid #ccc; padding: 15px; font-weight: bold; vertical-align: top;">National Average</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">34% – 37%</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">63% – 66%</td>
        <td style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Things are steady for winter. The real buying and selling starts the second the auction ends.</td>
      </tr>
      
      <tr>
        <td style="border: 1px solid #ccc; padding: 15px; font-weight: bold; vertical-align: top;">Auckland Region</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">31% – 35%</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">65% – 69%</td>
        <td style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Tons of listings give buyers total control. Buyers are refusing to stretch for high asking prices.</td>
      </tr>
      
      <tr>
        <td style="border: 1px solid #ccc; padding: 15px; font-weight: bold; vertical-align: top;">Canterbury / Christchurch</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">48% – 56%</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">44% – 52%</td>
        <td style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Remains a regional standout. There's still plenty of competition here, so more homes sell live.</td>
      </tr>
      
      <tr>
        <td style="border: 1px solid #ccc; padding: 15px; font-weight: bold; vertical-align: top;">Waikato & Bay of Plenty</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">28% – 33%</td>
        <td style="border: 1px solid #ccc; padding: 15px; text-align: center; font-weight: bold; vertical-align: middle;">67% – 72%</td>
        <td style="border: 1px solid #ccc; padding: 15px; vertical-align: top;">Quiet winter rooms. Buyers here are almost entirely waiting to make conditional offers after the event.</td>
      </tr>
    </tbody>
  </table>
</div>


## Why Live Auctions are Stacking the Deck Against First-Home Buyers
It's not that first-home buyers don't want to buy; it's that the rules of a live auction make it incredibly risky and expensive for them.

To bid at an auction, the banks require you to be "unconditional." That means if your hand is up when the hammer falls, you have legally bought the house right then and there, no backing out. 

Getting ready for that requires a mountain of expensive paperwork upfront:

- **The Expensive Homework:** Getting a lawyer to review the paperwork, ordering a building report, and getting the bank’s final tick of approval for that specific house can easily cost $1,500 to $3,000 per property.

- **Low Odds of Success:** Recent tracking reports from Interest.co.nz show that less than half of the homes selling at auction are going for more than their Rating Valuation (RV).

- **The Lost Money Risk:** First-home buyers simply don't have the spare cash to keep spending thousands of dollars on building reports for houses they might lose on the day.

Because of this, a massive crowd of serious, cash-approved buyers are forced to stand outside the room with their hands in their pockets. 

**They are waiting for the auction to fail so the rules change in their favor.**

<div style="border: 2px solid black; padding: 20px; margin-bottom: 40px; width: fit-content;">
  <span style="font-size: 0.9em; display: block;">
    This is exactly why having a dedicated Home Loan Adviser by your side before you hit the open home circuit is a total game-changer. 
    <br><br>
    Working with a team like <a href="https://tella.co.nz/about-us" target="_blank" style="color: blue; text-decoration: underline;">Tella</a> gives you complete peace of mind, saving you both time and money by mapping out your finance strategy and handling the entire bank paperwork trail for you early on. 
    <br><br>
    Best of all, because advisers are paid by the lenders, letting the experts handle the heavy lifting comes at absolutely no cost to you.
  </span>
</div>


## Timing Your Move in the Post-Auction Game
The second a property fails to sell and gets ‘passed in’, the strict auction rules vanish. 

The house becomes a normal listing, which means the seller can suddenly accept conditional offers, which can give you time to sort your finance, check your KiwiSaver, or get a building report <u>**after**</u> they accept your price.

If you’ve been keeping an eye on local sales using portals like OneRoof and TradeMe Property, this is where you can use two massive advantages:

### 1. Real-Time Price Discovery
Auctions offer absolute transparency. 

If you sit in the room and watch the active cash bidding on a home stall out at $890,000, you have just received the most accurate piece of market data possible. You know exactly what the cash-ready market believes that house is worth today.

When the auction concludes, you can immediately approach the listing agent with a massive negotiating advantage: 

_"I see the cash buyers stopped at $890k. I am prepared to offer the vendor $905k, but I need ten working days to formalise my KiwiSaver withdrawal and finance."_

### 2. Skipping the Multi-Offer Blindness
When a house is listed as ‘Price by Negotiation’ or a ‘Tender’, you usually end up in a stressful, blind multi-offer race where you have to guess what other people are offering, often overpaying out of pure fear. 

By waiting for an auction to pass in, you clear the room of cash buyers and get to step up knowing exactly where the market stands.

## What This Means for Buyers and Sellers
If you're selling a home right now, the current data sends a very clear message: you have to be realistic about your price.

Market updates from both OneRoof and [Trade Me Property](https://www.trademe.co.nz/c/property/news/property-pulse-report) point out that with high living costs and plenty of properties to choose from, today's buyers are moving with extreme caution. They are flatly refusing to overpay, meaning sellers with unrealistic price expectations are completely stuck as buyers hold all the leverage.

### The Takeaway:
An auction that passes in is no longer a failure; it is a highly effective tool that establishes the market floor.

It clears out the cash-ready buyers, shows you exactly where the market sits, and starts the real negotiation clock for the smart first-home buyers waiting strategically on the sidelines.   


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Get in touch with us to get your money sorted.</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
    At Tella, we help everyday Kiwis navigate the changing world of property finance and mortgage strategies. Whether you're looking at an easy turn-key package on  <a href="https://www.newhomes.co.nz/home-loans" target="_blank" style="color: red; text-decoration: underline;">New Homes,</a> or need to figure out how to structure a winning post-auction offer.
  </p>
  
  
  <a href="https://calendly.com/tella-adviser" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert
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<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_5. Auction Trends 2026.png

thumbnail_5. Auction Trends 2026.png

NZ Auction Trends 2026.png

NZ Auction Trends 2026: Should FHBs Actually Avoid Bidding?

![NZ First Home Buyers Common Mistakes.jpeg](https://mydash.blob.core.windows.net/strapi-uploads/assets/01_5_FHB_Common_Mistakes_frame_0_02_1f_fdf2264eef.jpeg)


Buying your first home in Aotearoa is a massive milestone, but the path to settlement is often littered with hurdles you won’t find on a real estate flyer. Between fluctuating interest rates and tighter lending criteria, it’s easy to make a wrong turn that slashes your borrowing power before you’ve even reached the first open home.

Here are five common traps we see NZ first home buyers making daily, and how you can avoid that “Sugar, I wish I knew that!” moment.

## **1. The 'Emergency' Credit Card That Kills Your Borrowing Power**

Many Kiwis keep a credit card or a dormant Afterpay/Laybuy account "just in case." While it feels like a safety net, lenders see it as a liability waiting to happen.

- **The Reality:** Even if your balance is $0, banks perform a mortgage stress test at rates around 6.85% to 7.5% (influenced by the Reserve Bank's [current OCR](https://www.rbnz.govt.nz/news-and-events/news/2026/04/ocr-on-hold-at-2-25)). They assume you might max out those limits tomorrow.
- **The Damage:** A $5,000 credit card limit you never use can still chop $25,000+ off your borrowing power.
- **The Fix:** If you don't need it, bin it. Close unused accounts at least three months before you apply to ensure your NZ credit report is clean and your budget is maximized.

## **2. Falling for the 'Buyer Enquiry Over' (BEO) Price Trap**

We’ve all seen it: a beautiful bungalow listed as "BEO $699k." It looks like a bargain, but don't get your hopes up too soon.

- **The Reality:** BEO is a marketing hook designed to trigger a multi-offer race. In competitive markets, homes frequently sell for 10–15% above that BEO figure.
- **The Cost:** You could spend $1,000 on a building report, only to find the seller won't look at offers under $780k. That’s a grand down the drain on a house that was never in your budget.
- **The Fix:** Don’t trust the sticker price. Check [REINZ](https://www.reinz.co.nz/) data or recent 'Sold' prices in the area to get a realistic steer on what you'll actually need to pay.

## **3. Visiting Open Homes Without a Mortgage Pre-Approval**

Heading to open homes without a pre-approval is like going to the supermarket without your wallet. You’re just browsing, and you're bound to be disappointed.

- **The Reality:** In 2026, unconditional or cash-ready buyers are king. Sellers often take a slightly lower price from a pre-approved buyer over a higher conditional offer just to get the deal done.
- **The Risk:** You might find "the one", only to lose it to someone who was ready to sign then and there.
- **The Fix:** Get your mortgage pre-approval locked in first. It turns you from a tourist into a serious buyer with the power to negotiate.

## **4. Underestimating the KiwiSaver Withdrawal Timeframe**

Assuming your KiwiSaver funds will magically appear the second you go unconditional is a recipe for a major headache.

- **The Reality:** It typically takes 10–15 working days for providers like Fisher Funds or [Westpac](https://www.westpac.co.nz/) to process a first-home withdrawal.
- **The Danger:** If you have a 10-day settlement and your funds aren't ready, you risk defaulting on the contract and facing heavy daily penalty interest.
- **The Fix:** Don't wait! Start your [KiwiSaver first-home withdrawal](https://tella.co.nz/home-loans-mortgages/first-home-buyer/kiwisaver-first-home-grant) paperwork the moment you go under contract.

## **5. Getting Stung by Extra Low-Deposit Costs**

Whether you use a government-backed scheme or a standard bank loan, having less than 20% equity comes with a price tag.

- **The Reality:** If you go through [Kāinga Ora First Home Loan](https://kaingaora.govt.nz/), you'll likely pay a one-off LMI (Low Equity Insurance) premium, often 0.5% of the loan, which is usually added to your mortgage. If you go through a standard bank with a low deposit, they apply a LEM (Low Equity Margin), an extra interest charge, often 0.25% to 0.75%, that stays until you hit that 20% equity mark.
- **The Math:** On a $700k mortgage, a 0.75% LEM adds about $5,250 a year in extra interest. Even a one-off LMI premium can add thousands to your total loan balance from day one.
- **The Fix:** Factor this extra cost into your weekly budget now. If you aren't sure where your deposit currently stands—including your KiwiSaver and savings—check out our [First Home Deposit Calculator](https://tella.co.nz/home-loans-mortgages/calculators/first-home-deposit) to see how close you are to that 20% milestone.

## **Your First Home is Within Reach**

Don't let these technicalities stand between you and homeownership. If you want to skip the stress and get into your own place sooner, get in touch with the team at Tella.

We know the NZ property market inside out, and we’re here to help you navigate the journey from 'just looking' to 'just moved in.'


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Ready to see where you stand?</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
  Curious to see if you’ve got enough to reach your goal? Maximize your borrowing power and get you on the property ladder!
  </p>
  
  
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     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert
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<p style="font-style: italic; font-size: 0.85em; color: #555;">
  This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

large_01 - 5 FHB Common Mistakes_frame_0_02_1f.jpeg

medium_01 - 5 FHB Common Mistakes_frame_0_02_1f.jpeg

small_01 - 5 FHB Common Mistakes_frame_0_02_1f.jpeg

thumbnail_01 - 5 FHB Common Mistakes_frame_0_02_1f.jpeg

NZ First Home Buyers Common Mistakes.jpeg

large_NZ First Home Buyers Common Mistakes.jpeg

medium_NZ First Home Buyers Common Mistakes.jpeg

small_NZ First Home Buyers Common Mistakes.jpeg

thumbnail_NZ First Home Buyers Common Mistakes.jpeg

5 Hidden Mistakes Tripping Up Kiwi First-Home Buyers in 2026

## Market Snapshot: The Q1 Numbers 
<div style="border: 2px solid black; padding: 20px; margin-bottom: 40px; width: fit-content;">
  <ul style="margin: 0; padding-left: 20px;">
    <li><strong>$720,000 Median Price:</strong> That’s the median price FHBs are paying. It’s a slight tick up, but still below the 2022 peaks.</li>
    <li><strong>77% Standalone Homes:</strong> Most FHBs are successfully avoiding tiny apartments and securing backyards.</li>
    <li><strong>50%+ Low-Deposit Loans:</strong> Over half of all buyers are getting keys with less than a 20% deposit.</li>
    <li><strong>$820 Monthly Savings:</strong> Average repayments (outside Auckland) have dropped significantly since 2024.</li>
    <li><strong>35 Years Old:</strong> The average FHB age has dropped from 35, as younger Kiwis find their way back to the market.</li>
    <li><strong>37% Wellington Share:</strong> The capital is currently the busiest hub for first-time buyers in the country.</li>
  </ul>
</div>


<p>While headlines often focus on the tough road ahead, the ground reality for New Zealand’s first home buyers (FHBs) tells a different story.</p>

According to the recently released [Cotality-Westpac Q1 2026 First Home Buyer Report](https://www.linkedin.com/posts/westpac-new-zealand-limited_cotality-westpac-first-home-buyer-report-activity-7458272727464865792-yUP4/), this demographic is currently the most resilient and active force in the real estate market. 

## 1.	FHBs Leading the Charge
The data shows that first home buyers accounted for **27.5% of all residential property sales** across New Zealand this past quarter. 

This level of dominance suggests that despite broader economic headwinds, those looking to enter the market are finding pathways that didn't exist during the price peaks of previous years. 

## 2.	The Return of the Standalone Home
A few years ago, the common narrative was that first home buyers were being priced into high-density apartments. 

However, current property data insights confirm that **77% of FHBs in Q1 2026 purchased standalone houses.**

The lack of intense competition from multi-property investors has allowed first-timers to secure forever homes with backyards rather than just 'stepping stone' units. 

## 3.	The Mortgage Repayment Shift
Affordability is improving. 

The report indicates that outside of the Auckland region, the average monthly mortgage repayment has dropped by approximately **$820 lower compared to in 2024.**

This shift is attributed to a stabilization in median prices, currently around $720,000 for FHBs, combined with more competitive bank margins. 

## **4.	Demolishing the 20% Deposit Myth**
Many prospective buyers stall their search because they believe a 20% deposit is a mandatory gatekeeper. 

Recent figures refutes this: over half of all successful FHB loans in the last quarter were processed with an LVR (Loan-to-Value Ratio) of over 80%. **The average LVR is now hovering at 81%,** proving that low-deposit lending is a standard path for many Kiwis. 

## Navigating the Remainder of 2026
With Westpac economists forecasting potential shifts in the Official Cash Rate (OCR) toward the end of the year, the current buying window is characterized by high stock levels and motivated sellers. 

#### •	Focus on Loan Structure
In a fluctuating rate environment, split-fixing your mortgage across different terms is more important than chasing a single low rate. 

#### •	Leverage Market Choice
With more standalone houses on the market, don't be afraid to negotiate on properties that have been listed for more than 4 weeks. 

#### •	Check Your Borrowing Power
Don't guess your numbers. Use our [useful calculators](https://tella.co.nz/home-loans-mortgages/calculators) to see how your deposit level affects your weekly repayments. 


<div style="border: 1px solid #ddd; padding: 30px; background-color: #10059f; font-family: Arial, sans-serif; margin-bottom: 40px; color: #ffffff; border-radius: 8px;">
  <h3 style="margin-top: 0; color: #ffffff; font-size: 22px;">Don't let the market noise dictate your future.</h3>
  
  <p style="color: #ffffff; margin-bottom: 25px; line-height: 1.5;">
   Get a clear picture of your options today.
  </p>
  
  
  <a href="https://calendly.com/tella-adviser" 
     style="background-color: #ffffff; color: #10059f; padding: 14px 28px; border-radius: 50px; font-weight: bold; text-decoration: none; display: inline-block; font-size: 16px;">
    Book a free chat with our mortgage expert
  </a>
</div>

#### New to the first-home buying journey?
Explore our [step-by-step guides](https://tella.co.nz/first-home) to help clear the confusion and find your path forward in the right direction.

<hr style="border: none; border-top: 2px solid black; height: 1px; width: 100%; display: block !important; visibility: visible !important; margin-top: 40px;">

<p style="font-style: italic; font-size: 0.85em; color: #555;">
 This article is for informational purposes only and does not constitute financial or professional advice. It does not consider your personal financial situation or objectives. Please consult with Tella mortgage and financial experts before making any decisions regarding your mortgage or debt strategy.
</p>

small_2. Cotality-Westpac Report Q1 2026.png

thumbnail_2. Cotality-Westpac Report Q1 2026.png

2. Cotality-Westpac Report Q1 2026.png

Key Insights from the Cotality-Westpac Q1 2026 Report

### Lower Interest Rates

Interest rates are finally heading in the right direction after a period of steady increases. This is largely due to the Reserve Bank’s efforts to manage inflation and global economic factors influencing interest rates.

### Easier to Qualify for a Home Loan

The government has made it easier to qualify for a home loan by relaxing the Credit Contracts and Consumer Finance Act (CCCFA) regulations. This means lenders can take a more holistic view of your financial situation, increasing your chances of approval.

### What this means for you

- Lower Monthly Repayments: Enjoy more financial freedom with reduced mortgage payments.
- Increased Borrowing Power: Qualify for a larger loan to purchase your dream home or invest in your property.
- Potential to Refinance: If you have an existing mortgage, explore refinancing options to take advantage of lower interest rates.
- Faster Approval Process: Streamlined processes can lead to quicker loan approvals, saving you time and hassle.

### Understanding the Bigger Picture

To give you a better understanding of how interest rates work, it's helpful to know that banks fund their loans through a mix of deposits, equity, and wholesale debt. 

The cost of wholesale debt, measured by interest swap rates, has fallen significantly in recent months (see 1 year swap rate graph below). This is the primary driver of the decline in home loan rates.

![Screenshot 2024-08-13 115747.png](https://mydash.blob.core.windows.net/strapi-uploads/assets/Screenshot_2024_08_13_115747_4d67a7ed54.png)

### Next Steps

Ready to take advantage of these positive market conditions? Book a [free, no obligations, chat](https://calendly.com/tella-advisors/chat-with-a-mortgage-expert-15min) with one of our home loan specialists today to explore your options.  

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Lower Interest Rates & Easier Approvals: Tella's here to help.

Are you keeping an eye on those 'special' interest rates your bank offers? Or if you’re a first-home buyer, are the rates you see online reflective of what you'll actually get? Let's dive into the world of bank interest rates, negotiation, and finding the best deal for your home loan.

Just like petrol stations adjust prices daily based on costs and exchange rates, banks also tweak interest rates regularly. While they might not update their website daily, you can often negotiate for better rates behind the scenes, especially during significant shifts like an OCR update.

But how do you know you're getting the best deal? It's not like you haggle over interest rates every day, right? This is where having an adviser comes in handy. They're plugged into the latest rate offerings, receiving weekly updates from banks, and can help you navigate through all the rates and offers.

Does a small rate difference matter? Absolutely! Let's crunch some numbers. Take a $500,000 home loan over 30 years. A 0.20% difference can save you $15 per week, adding up to $780 a year. Over the entire loan term, that's a whopping $23,400 in savings. And if you really want to get ahead and channel those savings back into your loan, you could shave off up to 18 months from your loan term, saving around $36,000.

Now, for first-time home buyers, understanding the intricacies of interest rates can be daunting. Factors like deposit size and the chosen bank can significantly impact the rates you're offered. Banks often apply Low Equity Margins or premiums for deposits less than 20%, which can catch you off guard if you're not prepared.

To understand more about bank fees and interest, visit our website [here](https://tella.co.nz/home-loans-mortgages/first-home-buyer/home-loan-mortgage-interest-fees). Our guide breaks down these charges, explaining what they are and what they're for, ensuring you're fully informed as you navigate through your homeownership journey.

**Ready to explore the best rates in the market?**

Simply email us at hello@tella.co.nz, with your bank name, and we'll provide you with the lowest rates we're seeing this week. Knowledge is power when it comes to securing your dream home, and we're here to arm you with the information you need.

Got questions or need assistance? Don't hesitate to reach out to our team. We're here to support you every step of the way.

Here's to finding the perfect home and securing the best possible home loan terms!

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Home Loan 'Special' Interest Rates

_**Please Note:** This newsletter was originally published on 8th January 2024. While the information presented here may still be valuable, some aspects may be outdated._

Achieving your homeownership goals begins with strategic planning. Here are some key steps to consider:

_**1. Budgeting Matters**_:

Keep a close eye on your spending and consider setting aside money each month in a separate account. Showing you’d have the income to cover essential expenses like rates and insurance can strengthen your position when applying for a home loan. Clearing credit card debts and discontinuing laybuys or afterpays is a smart move.

_**2. Assembling Your Team**_:

Engage with professionals who will be crucial to your journey:

<u>_Home Loan Adviser / Mortgage Broker_</u>:

Selecting the right professional is vital. Our advisers understand that not all homebuyers have the same needs. Whether you're building a home or working with a 5% deposit, our team guides you through various options, explaining why a particular bank suits your unique circumstances. It's worth noting that advisers are compensated by the banks when you secure your home, so there's no additional cost to you for the invaluable support they provide.

<u>_Real Estate Agent_</u>:

Beyond the traditional role, some agents go above and beyond. Collaborative agents can streamline your experience by showcasing homes from other agents’ listings, making your home search simpler.

Securing pre-approval and understanding your borrowing limit adds another layer of advantage. By reaching out to agents with this knowledge, you can inquire about upcoming listings in their area that may not have hit the market yet. This proactive approach positions you to be among the first to explore and potentially secure these yet-to-be-advertised homes. 

_<u>Insurance Broker</u>_:

Safeguard your investment by making sure you have comprehensive coverage. Going unconditional on a home is smoother when you've verified your insurance coverage with a trusted broker. Older homes, in particular, may raise concerns about past renovations to foundations, electrical, or plumbing. It's crucial to make sure you can get insurance!

You can typically secure insurance up to six weeks before settlement, so plan accordingly and factor it into your budget. By addressing insurance early in the process, your transition to homeownership will be much smoother.

<u>_Solicitor / Conveyancer / Lawyer_</u>:

Whether it's your first home, an investment, or a refinance, the essential service you'll need is conveyancing. You can opt for dedicated conveyancing firms or enlist the assistance of solicitors, often backed by Registered Legal Executives for extra support. Find someone you're comfortable with, as they play a crucial role as the intermediary between you, the vendor's solicitor, and the bank.

These professionals are your go-to for signing documents, transferring funds, updating titles, and managing council rates and water payments. Beyond being a service, they're a wealth of knowledge, ready to answer your questions. 

Consider discussing estate planning (will options) at the same time. Opt for firms with fixed prices, especially if you're a first home buyer with many questions.

While pre-approval doesn't require a solicitor/conveyancer, note their details when making an offer, as they'll review the agreement for you. If you're unsure where to start, we have preferred partners depending on where in the country you’re based.

_<u>Building Inspector</u>_:

In today's real estate landscape, a building report is often a legal or bank requirement. Just as you wouldn't buy a second-hand car without a mechanic's inspection, investing in a home – a more substantial asset – warrants similar scrutiny.

Inspectors go beyond the surface, checking foundations and roofing. Remember, these reports focus on issues, not the positives. Distinguish between minor maintenance and potential financial burdens, ensuring you grasp your home's true condition before finalising any deal.

_<u>Accountant</u>_:

For our self-employed individuals seeking pre-approval, it's crucial to plan ahead. If your financials are freshly completed, fantastic! If they're not, be prepared to provide them as soon as you can. Depending on the time of year or your financial cycle, forecast or management accounts may need to be prepared, adding an extra layer of time. Ensure you factor in this potential delay when working towards pre-approval. 

_<u>Registered Valuer</u>_:

When your deposit falls below 20% of the purchase price or you're acquiring a newly built or off-plan property without a title, a Registered Valuer becomes essential.

The good news? You don't have to search for one – your adviser or bank handles this, though it comes at your expense. With a standard turnaround time of approximately 6 business days, it's crucial to factor this into your timeline. For offers on a property, ensure a reasonable finance timeframe, considering the valuation process and subsequent bank review, which may take an additional day or three.

**Tailoring Your Team to Your Needs:**

Remember, not all these professionals may be required – it depends on your unique circumstances. Your journey to homeownership is as individual as you are.

**Start the Conversation:**

Not sure where to begin? Schedule a quick 15-minute chat [here](https://calendly.com/tella-advisors/home-loan-expert-chat?) to discuss your home ownership goals and aspirations. We're here to help you navigate the exciting journey ahead!

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Navigating Your Journey for Homeownership

_**Please Note:** This newsletter was originally published on 29th September 2023. While the information presented here may still be valuable, some aspects may be outdated._

Your deposit is sorted, but the amount the bank is telling you that you can borrow falls short of what's needed for a realistic shot at homeownership. Or perhaps you're already a homeowner looking to borrow more for renovations, but you're being told that your income isn't sufficient. It's a common dilemma, and you need a solution.

Now, before you consider asking for a raise, taking up a second job, or starting a side hustle (keep in mind that you'll generally need these additional income sources for at least a year to meet the bank's criteria), let's take a different approach. How about focusing on reducing your expenses?

Your bank statements reflect your monthly spending, and it’s no secret the banks review these. However, most banks often use the national average to estimate expenses. So, what changes can you make to improve your situation?

I'll break it down for you, but be warned, we'll dive into some numbers here.

If you have a **credit card, store card**, or any old overdraft account still open, it could be affecting the amount you can borrow. Even if you don't max out these cards or pay them off in full each month, they're still considered to be used to their maximum limit because they're available for use. 

Typically, this is seen as an cost equivalent to 4% of the limit. So, a $1,000 credit limit translates to a $40 monthly cost. You might think it's not much, but consider if you have multiple cards, like a GEM Card, Farmers Card, Mastercard, and Visa for a total limit of $10,000 or even $15,000. That's a $400 per month 'expense'. 
Still doesn't sound significant? Well, with $400 a month, you could pay off a $60,000 home loan over 30 years. Let that sink in - $400 a month can make a huge difference in the long run.

Basically, that $10,000 in credit card limits could be limiting how much you can borrow by a factor of six. The solution? Repay and close down those cards to increase your borrowing capacity, or reduce the limits if you're not actively using them.

But what if you need these cards for online bookings or travel, and the current limit won't suffice? Well, you can also load money onto them to purchase more expensive items and still earn rewards or points your credit card offers.

Now, let's talk about **Laybuys and Afterpay**. These can impact the amount you can borrow too, depending on the product. Sometimes it's the limit you have, other times it's the average of your monthly repayments. They might not seem like a big deal, but if you're paying $100 a month on these, they could be the obstacle preventing you from securing that extra $15,000 needed for home renovations. Don't let a small expense become the deciding factor for your kitchen or bathroom makeover.

**Personal loans and car loans** are quite common, often costing $400 a month or more. Even if you have just a few months left to pay, these payments will be factored into your borrowing amount. It's worth focusing on paying them off.

Now, let's talk about student loans; this one's a bit different and more personal. If 10% of your income goes towards repaying your student loan, that money could cover a significant portion of your home loan instead. While it may not always be feasible, for first-time homebuyers, if your student loan balance is low enough, it might be worth considering using your savings to pay it off and have a lower deposit for your home (making sure you still have the minimum deposit needed).

So, is it really your income, or are these perceived 'bank expenses' the main obstacle holding you back from getting that little bit more you need?

If you're looking to see how much you can increase your borrowing power by, don't hesitate to book a [free, no-obligation call](https://calendly.com/tella-advisors/home-loan-expert-chat?) with a Tella mortgage expert today.

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Reducing Perceived Expenses for Homeownership Success

_**Please Note:** This newsletter was originally published on 23rd September 2023. While the information presented here may still be valuable, some aspects may be outdated._


<br>
If you or your children face challenges securing a first home, you're not alone. High prices and slow savings can make owning a home seem like an elusive goal, especially for those going it alone. But having a supportive parent or family member can make this dream a reality.

This is your resource for understanding ways to achieve home ownership together. From family loans to gifts and guarantor roles, we're here to guide you. Our goal is to equip you to confidently extend a helping hand, guiding loved ones on their exciting path to owning a home.

And here's encouraging news: Over half of first-time homebuyers today receive family financial support. Yes, the Bank of Mum and Dad often steps in to make this happen. This support takes various forms, like loans, gifts, or being a guarantor.

Remember, it's not just parents – close family members can help too. Let's explore these possibilities and what you need to know.

**Family Loans: Defining the Terms**

Imagine a scenario where parents or family members lend money to a loved one to go towards their first home. It's a loan, and like any loan, there's an understanding it'll be repaid at some point. But before you dive in, it's important to have an open conversation and set clear terms. Questions to ponder include:
- Is there any interest on the loan, or is it interest-free?
- When is the loan due for repayment? Is it when the property is sold?
- Will the family members lending the money have a say in the type of property bought, or is it a hands-off arrangement?

Once you're on the same page, it's recommended for those providing the loan to consult their lawyer and draft a Deed of Acknowledgment.  This document outlines the loan's terms, including repayment specifics.

**Gifts: Support with No Strings Attached**

Similar to a family loan, a gift involves a sum of money provided by family members, with no catches: it doesn't need to be paid back, and no interest is applied or payments made. 

When applying for a home loan, a gifting certificate is required. This certificate states the gift amount, the giver, and importantly, that it's non-interest bearing and there won't be an encumbrance on the title.  An encumbrance is a note on the property title showing who is owed money - the most common of which is a bank's mortgage.

However, be aware that under certain circumstances, the courts might consider the gifted money as "relationship property," especially in case of a relationship separation.  To navigate this, we recommend you seek legal advice. 

**Guarantor Support: Sharing the Risk**

Another approach is having parents or family members act as guarantors.

In this setup, they use their own assets – often their house – as security for the first home buyers home loan. This enables them to enter the property market without needing significant cash upfront in the form of a loan or gift. Typically, the guarantee covers the amount needed to get to the crucial 20% deposit, so it's only a portion of their property's overall value that is used. This specific portion is set up as a separate loan to be repaid faster.

Remember that if the home owner struggles with repayments, the guarantor will likely become responsible for the loan. Because of this risk, the bank will also assess the guarantor to ensure they have sufficient income to meet the repayments if needed.
<br>
As always, it's important for both parties to seek separate independent legal advice before proceeding with a guarantor arrangement to fully understand the potential risks and long term implications, such as what happens if the parents/guarantors want to sell their home and there is still a loan in place. 

Whether it's a family loan, a gift, or a guarantor arrangement, clear communication, transparency, and legal guidance are key.

Should you be considering the Bank of Mum and Dad as a means of homeownership support, [book a free, no obligation, chat](https://calendly.com/tella-advisors/home-loan-expert-chat?). Our Tella mortgage experts are here to help you navigate this exciting journey.

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Bank of Mum and Dad: Another Path to Homeownership

_**Please Note:** This newsletter was originally published on 15th September 2023. While the information presented here may still be valuable, some aspects may be outdated._

<br>

Spring has arrived, and with it comes the perfect opportunity to take the first steps towards your home ownership dreams. In this post, we'll teach you all about deposits, how to build them, how much you'll need for your home loan and what happens if you don't have enough?

Before you can step into the world of home ownership, it's essential to build a strong deposit. Here are some ways to piece together your deposit:

- **Cash Savings:** Saving a portion of your income over time.
- **KiwiSaver:**Utilising your KiwiSaver contributions for your first home purchase.
- **Kāinga Ora:** Explore government grants and loans through Kāinga Ora to boost your deposit.
- **Family Assistance:** Consider the support of family members, whether it's a loan or a gift.

For more information on building your deposit, or any other home loan related topics, explore our informative guides in Tella's Learn section [here](https://tella.co.nz/home-loans-mortgages/learn?). 

**Understanding Your Deposit Requirements**

The deposit requirements may seem complex, but we're here to simplify it for you. While some lenders may accept a 5% deposit for first home buyers, it’s common practice today to aim for at least a 10% deposit. A larger deposit not only opens doors to better loan options but also paints a responsible financial picture for lenders. Also, understanding your Loan to Value Ratio (LVR) is important, as it affects your interest rate. If your LVR exceeds 80%, you are likely to have a Low Equity Margin added on top of the standard interest rate.

**Starting Early: The Key to Your Success**

Kickstart your deposit journey as soon as possible. Banks consider your spending habits when assessing your loan application, so responsible financial behaviour is essential. Prepare a budget, closely monitor your expenses, and devise a savings plan that aligns with your goals. Going hard and being aggressive with repayments up front could save you thousands of dollars over the term of the loan.

**Why Prepare a Budget?**

A well-thought-out budget helps you:
- Keep track of your monthly income and expenses.
- Calculate how much you can save from each pay.
- Identify areas where you can reduce spending and increase your savings.
- Automate Your Savings

Make saving effortless by automating transfers from your income account to a dedicated savings account. This streamlined approach allows you to grow your deposit without the hassle of manual transfers.

At Tella, we're dedicated to helping you make informed decisions on your home ownership journey. Feel free to reach out for a free, no obligation chat with our mortgage experts.

[Book your call](https://calendly.com/tella-advisors/home-loan-expert-chat?) today, and let's make your home ownership dream a reality!


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Navigating the Deposit Journey

_**Please Note:** This newsletter was originally published on 4th August 2023. While the information presented here may still be valuable, some aspects may be outdated._
<br>

The belief that bank lending for self-employed individuals is tough and hard to obtain might have you wondering how to secure your own home. Well, don't worry, because we're going to break it down for you here.

Let's start with the most common question: 

**How do lenders and banks calculate income for self-employed individuals?**

It all comes down to proving consistent taxable income to the bank. Forget about gross sales; what truly matters is your sales minus cost of goods, minus expenses. But here's the good part – we have some flexibility when it comes to considering expenses. We often request to 'add back' certain non-cash expenses, like depreciation, as they don't involve actual money spent. Similarly, in some cases home office expenses can be added back as well.

It’s not a black and white process, and you'll need to have a good mortgage broker that understands these intricacies to be able to break it all down effectively.

Banks usually prefer an average of the last two financial years, but some may accept just the last one year. Given the rollercoaster ride businesses have experienced over the past three years, it's crucial to explain how things are expected to go moving forward.

**Don't have two years of good financials?**

Now, let's talk about low-documentation loans for self-employed individuals. While these aren't as common with main banks, some second-tier lenders still offer them. A low-documentation loan requires minimal proof-of-income documents, often just a one-page letter from your accountant estimating your income for the year. This type of loan can be beneficial if you have a solid deposit but have only recently started trading or took some time off, resulting in a less impressive previous year but promising future prospects.

**Don't have an accountant? No problem!**

If you're contracting with only one or two businesses and have minimal expenses to claim, we'll typically request your Inland Revenue submissions from the last two years. The income after expenses will be averaged out, and we'll also check recent business bank statements to ensure income consistency. 

**Do you have a side hustle?**

For those juggling a side hustle while working full-time, here's some good news. Side business income, whether it's from online ventures, weekend markets, or even Uber driving, can boost your chances of getting a home loan approval. For this to be effective, this income needs to be consistent and ongoing (with taxes paid). Banks usually look for at least a year of operation to ensure long-term viability and profitability.

**Business Loans**

Now, let's touch on business loans. Traditionally, these are heavily backed by residential property, although it may not be the most ideal approach. While getting an unsecured business loan isn't easy, there are now options available for businesses that have been trading for over 12 months.


If you have any questions or need assistance with your home ownership or business goals, don't hesitate to [book a free, no-obligation call](https://calendly.com/tella-advisors/home-loan-expert-chat?) with a Tella mortgage expert today.

In the meantime, feel free to share this post with any of the other 364,599 self-employed individuals in NZ (According to MBIE stats for March 2023).

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Self employed and looking for a home or business loan?

_**Please Note:** This newsletter was originally published on 21st July 2023. While the information presented here may still be valuable, some aspects may be outdated._
<br>

There still seem to be a lot of rumours about how hard it is for first home buyers to get into homes and how tough it is to get bank approval. But house prices are down, the banks really want new business and they're doing what they can to help with approvals.  So just to bust a few myths, this is what we have seen approved in the last month or so:

**Back in NZ - unsure about short time on the job:**

We recently helped a young couple in their early twenties settle into their very first home after returning from working in Australia. They were aiming for Kainga Ora's 5% deposit First Home Loan so thought they needed a years worth of job history to make it happen. 

Once we tallied up their savings, KiwiSaver contributions, and First Home Grant, we realised they had enough deposit to buy the property without Kainga Ora's help. 

And guess what? If you're buying a property without Kainga Ora's assistance, there is no 'time at employment' criteria you need to meet. You just need to have an employment contract and not be in a probation period. 

We got them approved with a main bank.

From our very first conversation to applying and finally settling, it took us just 6 weeks to see them stepping into their brand new home. 

**No credit history? No problem!**

One of our youngest clients recently purchased their first property in Auckland at the age of 21.  They were in their first job and had never had debt ever before, so they also didn't have any credit history, which was no problem at all!

With 10% deposit they had saved, it showed the bank that they were a diligent saver and good with managing their money. We got an approval within 4 days of our first conversation, with the property settling just a month later.

**Can't refinance because house value dropped?**

Did you know that Loan to Value Ratios, or LVR, are only applicable to new lending? Property values have dropped. But it doesn't affect your ability to refinance as much as you might think, as long as your loan amount doesn't increase. Even for investment properties with over 65% lending, you're in luck – we've had success with major banks allowing up to 85% lending.

We recently helped a client refinance their owner occupied home and investment property from a second tier lender where they had an interest rate of 11%. Because they moved to a main bank, they saw savings on interest rates immediately! 

Whatever your situation, we're here to help with your home ownership goals. [Book a free, no-obligation call](https://calendly.com/tella-advisors/home-loan-expert-chat?) with a Tella mortgage expert now.





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Busting home loan myths

_**Please Note:** This video was originally published on 2nd September 2022. While the information presented here may still be valuable, some aspects may be outdated._

<br>

🏡 Attention NZ Resident Visa Holders: Buying Your Dream Home is Possible! 💫

Have you been told that purchasing a home on a NZ resident visa isn't possible? We're here to dispel that myth – because you CAN make your homeownership dreams a reality!

Discover how to navigate the process and secure the house you've always wanted with our simple guide.

For personalised guidance on your home loan journey, reach out to us at hello@tella.co.nz, and our friendly team will be happy to assist you every step of the way. 📧🔑

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How to buy your dream home on a New Zealand Residence Visa

_**Please Note:** This video was originally published on 7th June 2022. While the information presented here may still be valuable, some aspects may be outdated._

<br>

Before buying your first home you'll need to save for a deposit. This Tella video guide covers what you need to know before you start saving. What can you afford to spend on a home and how much the bank will lend? It covers using KiwiSaver, Kainga Ora, and loans or gifts from parents. For the first home, we always want to make our deposit go far so it's important we cover off low deposit (low equity) loans and what this means in terms of cost. Take 5 minutes to get yourself up to speed before using some of the great calculators and guides on the Tella website.

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Saving for a home loan deposit

If you or your children face challenges securing a first home, you're not alone. High prices and slow savings can make owning a home seem like an elusive goal, especially for those going it alone. But having a supportive parent or family member can make this dream a reality.

This newsletter is your resource for understanding ways to achieve home ownership together. From family loans to gifts and guarantor roles, we're here to guide you. Our goal is to equip you to confidently extend a helping hand, guiding loved ones on their exciting path to owning a home.

And here's encouraging news: Over half of first-time homebuyers today receive family financial support. Yes, the Bank of Mum and Dad often steps in to make this happen. This support takes various forms, like loans, gifts, or being a guarantor.

Remember, it's not just parents – close family members can help too. Let's explore these possibilities and what you need to know.

Family Loans: Defining the Terms

Imagine a scenario where parents or family members lend money to a loved one to go towards their first home. It's a loan, and like any loan, there's an understanding it'll be repaid at some point. But before you dive in, it's important to have an open conversation and set clear terms. Questions to ponder include:
Is there any interest on the loan, or is it interest-free?
When is the loan due for repayment? Is it when the property is sold?
Will the family members lending the money have a say in the type of property bought, or is it a hands-off arrangement?
Once you're on the same page, it's recommended for those providing the loan to consult their lawyer and draft a Deed of Acknowledgment.  This document outlines the loan's terms, including repayment specifics.

Gifts: Support with No Strings Attached

Similar to a family loan, a gift involves a sum of money provided by family members, with no catches: it doesn't need to be paid back, and no interest is applied or payments made. 

When applying for a home loan, a gifting certificate is required. This certificate states the gift amount, the giver, and importantly, that it's non-interest bearing and there won't be an encumbrance on the title.  An encumbrance is a note on the property title showing who is owed money - the most common of which is a bank's mortgage.

However, be aware that under certain circumstances, the courts might consider the gifted money as "relationship property," especially in case of a relationship separation.  To navigate this, we recommend you seek legal advice. 

Guarantor Support: Sharing the Risk

Another approach is having parents or family members act as guarantors.

In this setup, they use their own assets – often their house – as security for the first home buyers home loan. This enables them to enter the property market without needing significant cash upfront in the form of a loan or gift. Typically, the guarantee covers the amount needed to get to the crucial 20% deposit, so it's only a portion of their property's overall value that is used. This specific portion is set up as a separate loan to be repaid faster.

Remember that if the home owner struggles with repayments, the guarantor will likely become responsible for the loan. Because of this risk, the bank will also assess the guarantor to ensure they have sufficient income to meet the repayments if needed.

As always, it's important for both parties to seek separate independent legal advice before proceeding with a guarantor arrangement to fully understand the potential risks and long term implications, such as what happens if the parents/guarantors want to sell their home and there is still a loan in place. 


Whether it's a family loan, a gift, or a guarantor arrangement, clear communication, transparency, and legal guidance are key.

Should you be considering the Bank of Mum and Dad as a means of homeownership support, don't hesitate to reach out here. Our Tella mortgage experts are here to help you navigate this exciting journey.

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Bank of mum and dad