Mortgage A to Z

Here’s a brief summary of the first home buyer process:

Check your affordability | House hunting | Making an offer | Due diligence | Confirm or withdraw | The finer details | Settlement

Step 1: Check your affordability

Can you afford this house?

Start by meeting with a mortgage advisor at your bank to assess your borrowing capacity. If possible, get pre-approved for a loan.

If you’re not able to get approved right away, don’t worry! Work on a plan to improve your finances so you can be ready to secure approval in the near future.

2. House hunting

Now, it’s time to view some properties. This will help you determine what you like (and what you don’t) while narrowing down your options. 

Take time to get a feel for the market – see what homes are selling for and understand the factors influencing those prices.

Remember, real estate agents work for the seller, not the buyer. Remember that when viewing homes and discussing prices.

3. Making an offer

Once you’ve found a house that ticks all the boxes, it’s time to make an offer. You can do this in two ways:

  1. Meet with a real estate agent and write the offer together, including all your conditions and timeframes.
  2. Request a copy of the sales and purchase agreement and draft your offer with your lawyer. We recommend this option because your lawyer can review the legal document before you sign, ensuring everything is in order. 

4. The due diligence period

Once you have an offer accepted, your application becomes a live deal. Now, it’s time to complete all the necessary steps to satisfy the conditions of your offer and confirm whether you can proceed with the purchase.

Your mortgage adviser will need a copy of the sales and purchase agreement to confirm your unconditional finance. If you’re not pre-approved, this is when you’ll submit your finance application. 

Your lawyer is a crucial ally during this stage, helping you ensure everything is in order. If you need to withdraw funds from your KiwiSaver to confirm your finances, work with your lawyer early to get this sorted.

Please note that all due diligence must be completed before placing an unconditional bid for auctions.

5. Confirm or withdraw from the contract

Once you’ve met all your conditions and your lawyer is satisfied, you can instruct them to confirm the contract.

If, however, you’re unable to satisfy conditions like finance or are unhappy with things such as the building report, you can use these reasons to withdraw from the agreement.

Once you confirm the contract, you typically pay the deposit and agree on the settlement date.

6. The finer details

At this stage, it’s time to finalise the details of your purchase.

First, we’ll work on your loan structure, and your loan documents will be prepared for you to review and sign with your lawyer.

You’ll also need to ensure any remaining deposit is sorted, whether transferring your cash savings or confirming your KiwiSaver withdrawal has gone through.

Don’t forget to arrange your home insurance; your lawyer will need to upload a certificate of insurance with your loan documents.

Finally, it’s time to prepare for the move. This includes organising packing, shifting, setting up new bank accounts, and arranging utilities such as electricity and internet.

7. Settlement day

On settlement day, your lawyer will receive the settlement funds from the bank and pay your vendors through their lawyer. After that, the real estate agent will call you to hand over the keys.

It’s important to note that settlement can often happen later in the day, so it’s not always wise to plan your move for that same day.

After the big move, it’s always nice to shout your mates some pizza or fish and chips as a thank you for all their help.

Please contact one of our advisors if you have any more questions or need guidance through the process.


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