FIRST HOME BUYER HANDBOOK - ANZ
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FIRST HOME
BUYER
HANDBOOK
HELPING YOU AT EVERY
STEP OF YOUR JOURNEY
FIRST
HOME
BUYER
HANDBOOK
The home buying process can be challenging, but
with the right help, you can move through each step
with confidence. In this guide, we break down the
home buying process into easy-to-understand steps.
DON’T GO IT ALONE
First things first, get in touch with an ANZ Home Loan Coach. They’ll be in your
corner at every stage of the home buying journey, from getting a pre-approval
through to getting your keys.
Call 0800 269 4663
Visit anz.co.nz/homeloancoach
Come into any branch
Arrange for an ANZ Mobile Mortgage Manager to
visit at a time that suits you at anz.co.nz/mmm
THE HOME BUYING PROCESS
PL ANNING HOUSE SETTLING
KNOW YOUR BUYING
HUNTING BRINGING IT
POWER FINDING THE ONE HOME
1 2 3
• Meet with your ANZ Home Loan Coach • Understand what to look for • Confirm your home loan and
• Understand the cost of buying and owning a home • Do your homework on potential properties repayment structure
• Put together your support team • Get an ANZ Property Profile Report • Complete pre-settlement tasks
• Work through your deposit options • Engage a solicitor – Submit your KiwiSaver first home
withdrawal and/or First Home
– Check your KiwiSaver withdrawal • Complete required inspections & reports
grant applications
& First Home grant eligibility • Understand different types of offers
– Confirm your insurances are
– Request your KiwiSaver eligibility letter • Find out how the house will be sold in place
Get your home loan pre-approved • Follow the steps in our road maps – Carry out your pre-settlement
– F inalise your deposit payment inspection
• Discuss your insurance needs – Submit your KiwiSaver first home – S et up your settlement payment
withdrawal application
Settlement day –
Apply for full loan approval
pick up the keys and move in!
2 3
MEET WITH AN ANZ HOME LOAN COACH
Your coach will take you through your loan You can also find a range of tools and
options and help with your plan of getting calculators to help you understand
to where you want to be. They’ll give you an what you may be able to afford at
approximate idea of what you could borrow, anz.co.nz/firsthome, including how
work through your deposit options, and much you could borrow and how
what your repayments might look like. much your repayments may be.
THE COSTS OF BUYING AND OWNING A HOME
PLANNING Buying Costs – One off Owning Costs – Ongoing
• Solicitor fees • Home loan repayments
KNOW YOUR BUYING • LIM reports • Council rates
POWER
• Property Files • Insurance – Home & Contents
• Building inspections • Utilities and maintenance
• Moving costs • Body corporate fees
• Utility setup and (if buying a Unit title)
reconnecting services
1
Your coach can help you compare these is suitable and how much of your income
ongoing costs to your current living you should attribute to your mortgage,
costs, like rent, to work out the costs of talk to your coach. For helpful budgeting
The first stage of buying a home involves owning a home and help you set your tools visit sorted.org.nz
budget. To figure out which loan option
reviewing your finances to understand what
you can afford to spend.
Your coach can help you assess your insurance needs and tailor
TIP
a plan to fit your needs and budget.
4 5
HOW KIWISAVER CAN HELP
Unlocking your KiwiSaver can help you get into your first home sooner. If you’ve been a
PUTTING TOGETHER YOUR SUPPORT TEAM KiwiSaver member for at least three years, you may be able to use your KiwiSaver savings
to help you into your first home. There are two ways KiwiSaver can help:
Aside from your ANZ Home Loan Coach you will need:
1. Make a first home withdrawal from your KiwiSaver account.
• A solicitor – There are a number of legal whether it’s the one for you. You can find
matters associated with purchasing a a list of building inspectors in your area at 2. Apply for a First Home grant from Kāinga Ora (previously known as Housing New Zealand).
home, so it’s important to involve your boinz.org.nz
solicitor before you make an offer or bid at FIRST HOME WITHDRAWAL
• Family and friends – Family and friends
an auction. If you need to find one check can help you throughout your home Your KiwiSaver savings can be used either to buy your first home or buy land to build your
out propertylawyers.org.nz. Legal fees buying journey, whether that be giving first home on (but if you’ve already bought land you can’t use your KiwiSaver savings).
vary, so ask around and get an estimate. their honest feedback on potential
• Building inspector – A building inspector properties, supporting you at an auction Are you eligible?
can tell you about the condition of a or celebrating with you once you’ve
property, which might help you decide bought your new home. Have you been a member You need to be a member
of KiwiSaver or a complying of KiwiSaver or a complying
superannuation fund for
N superannuation fund for at least
at least three years? three years before you can apply.
DEPOSIT OPTIONS
Is this the first time you’re
What size deposit will you need? Getting the deposit together for a new withdrawing from a KiwiSaver You can only make one first
Generally, you’ll need a 20% deposit for home can be challenging. If your savings Y scheme to buy a home, or land
N home withdrawal.
an ANZ Home Loan, but depending on are not enough, there are other options to build a home on?
your situation and the type of home you’re available. You may be able to get help from:
buying, there may be exceptions – so talk • KiwiSaver (if you’re eligible);
As a previous home owner, you
to your coach today. • Family and friends. may still be eligible. Kāinga Ora can
Will this be your first time owning
You can also work out how much you Y a home or a piece of land?
N determine if you’re eligible as
a previous home owner. Find out
could borrow by using our home loan more at kaingaora.govt.nz
calculator at anz.co.nz/homeloancoach
First home withdrawals are only
Is the home or land you’re looking
Y to buy in New Zealand?
N available for homes or land located
IN 2018, ANZ HELPED OVER 9,000 KIWIS INTO THEIR in New Zealand.
FIRST HOME WITH THEIR KIWISAVER SAVINGS.
You must intend to live in the home
Do you intend to live in the home
or on the land you’re buying. The
Y you’re buying, or build a home to N first home withdrawal can’t be used
live in on the land you’re buying?
to purchase an investment property.
If you’re a member of an ANZ KiwiSaver scheme, your coach can
TIP help you understand your eligibility and how much you could
withdraw for your first home. Great! Sounds like you
6 Y may be eligible. 7
How much can you withdraw? Once you’ve found the home or land FIRST HOME GRANT
If you’re eligible, you can apply to you want to buy, it’s important to apply
Kāinga Ora offers First Home grants for The Government pays this directly to
withdraw the total amount in your for your first home withdrawal early to
eligible KiwiSaver members to help them your solicitor on settlement day – it
KiwiSaver account, except for $1,000 and ensure your savings are available when
buy their first home. doesn’t come out of your KiwiSaver
any amount transferred from an Australian needed. If you’re eligible, you can choose
account. For details on how to apply,
complying superannuation scheme. to put your KiwiSaver savings towards To find out if you meet Kāinga Ora’s
visit kaingaora.govt.nz/firsthomegrant
the deposit you pay to the vendor (seller) eligibility criteria, visit
If you lived overseas since joining while your Sale and Purchase Agreement kaingaora.govt.nz/firsthomegrant Please allow plenty of time for Kāinga Ora
KiwiSaver and didn’t have permanent is still conditional (generally 10% of the to process your application.
residence in New Zealand over that time, How much can you get?
purchase price). Or alternatively, once
you won’t be able to withdraw any of your offer goes unconditional, you can The amount of the First Home grant
the Government contributions received put your KiwiSaver savings towards the depends on whether the house you’re
during that period. purchase price at settlement. buying is existing or newly built.
What do you need to do? You’ll need to:
When you apply for your home loan
• Talk to your New Zealand solicitor – EXISTING HOME NEW BUILD
pre-approval, you generally need to
they can help you through the process
provide a KiwiSaver eligibility letter.
This letter includes confirmation of • Take the application form to your $5,000 $10,000
your eligibility to make a first home solicitor so they can help you Maximum Maximum
withdrawal, as well as your estimated complete it and gather all the
withdrawal amount. required documents
• Check the processing time for
Your KiwiSaver scheme provider can
KiwiSaver first home withdrawals with OR
give you an eligibility letter and a first
your KiwiSaver scheme provider – if
home withdrawal application form.
this is ANZ Investments, submit your
If your KiwiSaver account is with ANZ
application at least 15 business days
Investments, you can request these at
(10 business days if you haven’t lived
anz.co.nz/fhwrequest or call 0800 736 034.
overseas) before payment is due. $1,000 $2,000
For each year you’ve been a For each year you’ve been a
contributing member of KiwiSaver contributing member of KiwiSaver
Any Australian Your first home
Your KiwiSaver
– $1,000 – Super you have = withdrawal
balance
transferred amount
Applying for a First Home grant
! If you apply for a First Home grant, you’ll need to provide Kāinga Ora
If you’re looking at withdrawing your KiwiSaver savings, it’s a with proof of your regular contributions to your KiwiSaver account.
TIP good time to review your fund choice. If your KiwiSaver account You can get your transaction history from ANZ Internet Banking or
is with ANZ Investments you can use our risk profile tool to see from our KiwiSaver portal.
if you’re in the right fund at anz.co.nz/riskprofiletool To register for access, visit anz.co.nz/keeptrack
8 9
GETTING HELP FROM FAMILY
There are three ways your family members may be able to help you get into your first
home – gifting, loans and guarantees.
Gifting Guarantees GET YOUR HOME LOAN PRE-APPROVED
This is when a family member gives you In some cases, we may be able to take
some of the money for your deposit. a mortgage over a home owned by A pre-approved home loan allows you to house hunt with
If someone is giving you money for your someone else, for example your parents,
confidence, giving you an idea of your potential buying
deposit, we’ll need confirmation that as extra security for your loan. Where this
you won’t need to repay that money. happens, we’ll need a guarantee from the power and your approximate price range. You’ll also need
Both you and the family member(s) owners of that home. Under a guarantee, a pre-approval to enter KiwiBuild ballots.
concerned should get independent legal someone agrees that they will be
advice before taking up this option. responsible for some or your entire loan
if you’re not able to pay it for any reason. It gives you an indication of what Who you are
Loan from family we’re willing to lend you, subject to
With this option, we will require a Deed There are a number of conditions that 1
certain conditions.
of Acknowledgment confirming that both you and the family member(s)
the loan will not have to be repaid until providing the guarantee will need to There are a number of things your coach
the property is sold. Your family member meet, and you’ll both need to get legal will need to assess when considering
should talk to their solicitor about getting advice before taking up this option. a pre-approval:
this sorted. 1. Validate your identity; and
2. Assess your financial position, income, 2 3
living expenses and eligibility for a
KiwiSaver first home withdrawal.
We will need proof of address, a valid
photo ID and proof of regular income.
These can be provided through utility bills,
a passport or New Zealand driver’s license,
pay slips or three months’ bank statements. Your finances The property
A pre-approval makes up two of the three
parts of a full loan application; your identity
and your financial position – so it gets you To start the pre-approval process, simply
off to a great start. All that remains is to contact your ANZ Home Loan Coach or
find the right property – and that’s what start the application process online at
the next section is all about. anz.co.nz/homeloancoach
Your pre-approval is valid for up to three months. If you’re
TIP house hunting for longer, contact your coach who can
reassess your financial position.
10 11
ASSESSING YOUR INSURANCE NEEDS
Your home may be the most valuable asset you’ll own,
so you need to protect it.
It’s a good idea to think about this early, Protecting your lifestyle
because once you’ve found a home you’ll What would happen if you suffered from
need to insure it before you get the keys. an accident or illness that prevented you
Owning a home is a new chapter in your from working, were made redundant
life, so you may also want to consider or died? Life and living insurance can
protecting you and your family’s lifestyle – help ensure that you and your family
now and in the future. are protected. Your coach can help you
put together the right combination of
Protecting your new home
insurance options for your situation –
HOUSE
House insurance protects you if your
and your budget. For example:
house gets damaged or affected by
things like a fire, flooding or natural • Living Expense Cover provides help
disaster. You must have adequate house with your living expenses if you can’t
insurance in place before settlement day.
Your coach can help you understand
what you need to do and potential
work due to accident or illness
• Critical Illness Cover helps provide
financial security for you and your
HUNTING
insurance costs for the house type and
location you’re looking for.
family if you’re diagnosed with one of FINDING THE ONE
12 serious conditions, including cancer,
Protecting your valuable possessions stroke or a major heart attack
Contents insurance covers the things • Life Cover helps ensure your family will
you own (other than your house), such as
furniture, clothes, appliances, etc. If you
be looked after financially if the worst
should happen to you
2
don’t already have contents insurance,
• Redundancy Cover helps ensure you
it’s a good idea to get this in place so you
can keep paying the mortgage and
have peace of mind should something
other bills if you’re made redundant. Once you’ve got your deposit and pre-approval
happen to your belongings. Your coach
can help you understand the options. sorted, you can start thinking about what kind
of home you’re looking for.
Talk to your home loan coach or visit
TIP
anz.co.nz/personal/insurance to find out more.
12 13
UNDERSTAND WHAT TO LOOK FOR TYPE OF LAND OWNERSHIP
Finding the right home can take up a lot • Location There are a number of land ownership types and what it will mean for you while
of time and energy, so it’s a good idea • Size types in New Zealand. The more you search for your first home and before
to write down what’s important to you commonly known types are: Freehold, making an offer.
before you start. This may include: • Type of home Leasehold, Cross lease and Unit titles.
See settled.govt.nz for more details about
It’s important to talk to your solicitor and
the types of land ownership.
get their advice about these different
THE RIGHT PROPERTY FOR YOU
Existing Houses Apartments and Terraced Houses Construction (House and Land Packages) Off the Plan (Turnkey)
Existing houses are generally less When you buy an apartment or a townhouse Building your own home usually requires Purchasing a property before it’s been built
complicated in terms of the purchase you may become a shared owner of any two loans: one for the land itself and one for can make it hard to know what the value
process and your loan. common areas of the property (i.e. a construction of the property. When you’re of your finished home will be.
member of the body corporate). planning this type of property, you may
Before you commit to buying a house To understand the risks with this type of
wish to consider:
you may wish to consider: In addition to inspections and contract property you may wish to:
reviews, you may wish to ensure you • Any council restrictions on building
• Carrying out building inspections • Inspect display sites
understand the financial position of the size and style
• Having a solicitor review the Sale and • Check floor plans, room measurements
body corporate and your responsibilities • Any easements on the site or issues with
Purchase Agreement. and the actual fittings that will be used
as a member. access or service connections
• Have a solicitor review the Sale and
• Any covenants added by the previous
Purchase Agreement
owner or developer
• Consider that during construction your
• You must obtain a Code Compliance
pre-approval may expire and lending
Certificate on completion
criteria may change
• Note, if you’re planning on using your
• You must obtain a Code Compliance
KiwiSaver savings, your first home
Certificate on completion.
withdrawal can only be put towards the
land purchase, not other things such as
building materials or contractors.
14 15DOING YOUR HOMEWORK ON
POTENTIAL PROPERTIES
Buying a home is a big commitment, so it pays to research ENGAGE A SOLICITOR
potential properties before you jump in and make an offer.
Once you’ve found a potential property, here’s an overview
Start by rating it against the things that you identified as important in a home. For example:
of how your solicitor can help.
• Does it get good sunlight (it pays to visit at different times of the day)?
• What is the neighbourhood like (including neighbouring houses)?
Purchasing by auction Building a new home and House
• Is it close to facilities like shops or transport? & Land (Turnkey) packages
Talk to your solicitor before making a bid
• Does it have insulation? How is it heated? at auction. They will advise you of all the These types of contracts can be more
• What is the general condition of the building, roof, and outside areas? Are there due diligence you need to complete complex, so it’s important to involve
any potential issues that may need to be addressed? before the auction day. your solicitor from early on. Always have
• What is the likely market value? Are the owner’s expectations realistic? your solicitor review any contracts before
Purchasing by offer and negotiation
signing them.
or tender
For more details about researching a property, visit settled.govt.nz Finalising the sale
Your solicitor will review the Title
information, LIM report and advise you If you are successful for any purchase
if you need to consider adding any method your solicitor will be responsible
Before you make an offer on a property, it’s important to factor conditions to your offer. Typical conditions for transferring the property to you
TIP in the cost of home insurance. Certain regions may not only include: subject to confirming finance (conveyancing) and completing the
have higher premiums, but there may be some restrictions on (obtaining full loan approval – more transactions necessary for settlement
obtaining insurance. Your coach can help you with this. on page 24), obtaining a LIM report (you will be able to pick up the keys
and being satisfied with the results of following settlement).
a builder’s inspection.
KiwiSaver first home withdrawal
If you’re using your KiwiSaver savings,
you’ll give your first home withdrawal
forms to your solicitor, who will finalise
them and send them to your KiwiSaver
scheme provider. Once your withdrawal
has been approved, your provider will
GET AN ANZ PROPERTY PROFILE REPORT
send your withdrawal amount to your
AND KNOW A HOME’S POTENTIAL WORTH
solicitor’s bank account.
An ANZ Property Profile Report gives you an estimate of a
property’s potential market value, plus recent comparable
property sales in the area – helping you decide how much
you’re willing to pay for a particular home. The report, produced by If you don’t already have a will, talk to your solicitor
CoreLogic, is worth $49.95 and is free to ANZ customers so talk to TIP
about putting one in place.
your ANZ Home Loan Coach today.
16 17COMPLETE REQUIRED UNDERSTANDING TYPES OF OFFERS
INSPECTIONS & REPORTS
There are two options when making an offer on a property;
There are a range of inspections and reports available for a fee conditional and unconditional. You should always have your
to help you research a property you’re interested in. solicitor check any Sale and Purchase Agreements before
you make an offer.
Building inspections request a copy. Depending on the type
A registered building inspector will of sale, the agent may provide you CONDITIONAL OFFER UNCONDITIONAL OFFER
inspect the house and check whether it with a copy of the LIM report and the
Record of Title (particularly if you’re A conditional offer is one where you An unconditional offer is one where
is structurally sound, the condition of the
buying at auction). Check with your can specify conditions that must be there are no conditions attached to
wiring and if there are any water tightness
solicitor regarding the date and contents. met before you agree for the Sale and your offer. You should carry out all due
issues. The cost of a builder’s inspection
The cost of a LIM report can vary from Purchase Agreement to be declared diligence (e.g. LIM reports, inspections,
depends on the level of detail you require
around $200-$395* and tend to be more unconditional. Conditions could include confirming finance) and ensure your
and generally start at around $350*.
expensive in larger cities. making your offer subject to obtaining solicitor has reviewed the Sale and
Check the LIM report (Land a satisfactory building inspector’s report, Purchase Agreement prior to making an
Information Memorandum) Consider ordering a property file confirming finance (obtaining full loan unconditional offer, as you will be legally
A LIM is a report issued by the local A property file provides any approval – more on page 24) or obtaining bound to complete the purchase if your
city or district council which provides correspondence with the council a LIM report. Conditions always have offer is accepted.
a summary of all the information the regarding the property and helpful plans. a timeframe attached and must be
council has on file in regards to roads, A property file does not replace a LIM completed by the specified date.
flooding or any contamination of the report and your solicitor will advise you
land, rates and resource planning whether one is required.
consents. LIM reports are available FIND OUT HOW THE HOUSE WILL BE SOLD
Property file costs range from $10 to $60*
through your local council. You can
depending on the council. There are four main ways to buy a house in New Zealand; offer and negotiation, tender,
request it yourself or your solicitor can
auction and buying a home with KiwiBuild. Each sale method has pros and cons. Check
out our road maps on the following pages for more information and the steps you need
to take for each type of purchase.
Remember that making an offer may lead to a legally binding contract if your offer is
accepted. Buying a house is an exciting time, but it’s important that your solicitor checks
your Sale and Purchase Agreement before you sign it.
The cost of inspections and reports can start to add up. Experience the home buying process
TIP So be sure it’s a property you are really interested in TIP You can register for a free ANZ Property Unlocked Seminar to get
before requesting these. first-hand insights from experts including solicitors, real estate
agents and ANZ Home Loan Coaches. To find a seminar near you,
visit anz.co.nz/propertyunlocked
*Please note that costs quoted are estimates only and can vary depending on region and are subject to change.
18 19AUCTION
An auction is where you bid against other people until only one negotiate with the highest unsuccessful bidder. If you buy a home at
bidder is successful. All interested buyers turn up on auction day and auction, the sale is unconditional – so you need to obtain legal advice
bid. The vendor (seller) will have a reserve price, and once this price is and do your due diligence (i.e. inspections, valuations) before you bid,
reached, the property is on the market and will be sold to the highest have finance approved ahead of the auction and be ready with your
bidder. If it doesn’t reach the reserve price, the vendor may choose to deposit on the day (generally 10% of the purchase price).
AHEAD
OF THE
AUCTION
Apply for your Do your homework Get a free Property Carry out all due Have your solicitor review Apply for full
home loan on potential Profile Report diligence and the Sale and Purchase loan approval –
pre‑approval properties inspections Agreement and share it see page 24
with your coach
ON
AUCTION
DAY
If successful – sign If the reserve price is not met, Start bidding Be ready with your deposit Check your bank transfer
the Sale and Purchase the vendor may choose to – know your (generally 10% of the limit to ensure you can
Agreement and send it to negotiate with the highest price limits purchase price and paid by pay your deposit.
your coach and solicitor unsuccessful bidder cheque or bank transfer) Call 0800 269 296
YOU CAN’T USE YOUR KIWISAVER SAVINGS TOWARDS THE
DEPOSIT IF YOU’RE BUYING AT AN AUCTION. INSTEAD, IF YOU ARE
If you are using KiwiSaver A) Work with your solicitor B) Submit your applications ELIGIBLE FOR A WITHDRAWAL, YOUR KIWISAVER SAVINGS WILL
savings towards your to complete and submit at least 15 business days
purchase price on settlement your KiwiSaver first home before payment is due if BE PAID TOWARDS THE PURCHASE PRICE ON SETTLEMENT DAY.
day you’ll need to: withdrawal application your KiwiSaver account is
20 with ANZ Investments* 21OFFER AND NEGOTIATION TENDER
If you want to make an offer, the real estate agent or your solicitor Anyone who is interested in the property submits a written offer
will help you fill in a Sale and Purchase Agreement, which contains (tender) by a certain date. Typically, all the tenders are opened at once
your offer and any conditions. The vendor (seller) can accept your and the vendor decides which (if any) they will accept. They may also
offer, reject it or make a counter-offer. The real estate agent will act as choose to negotiate with any of the tenderers, however you might not
the go-between until both you and the vendor reach an agreement. always get this chance so consider this when making your offer.
BEFORE
YOU MAKE
AN OFFER
Apply for your Do your homework Get a free Property Carry out all due Apply for full loan approval Decide on a price
home loan on potential Profile Report diligence and (you can do this later if you and conditions (if
pre‑approval properties inspections (unless make your offer conditional any) for your offer
you’re including them on finance) – see page 24
as a condition)
IF YOUR
OFFER IS MAKING
ACCEPTED AN OFFER
If you set conditions as If the property is being If you are purchasing by Have your solicitor review
part of your offer, arrange sold by tender you offer and negotiation you the Sale and Purchase
for them to be met may not get the chance may have the option to Agreement and share it
to negotiate negotiate with the vendor with your coach
if they counter your offer
Have your solicitor Check your bank transfer Be ready with your deposit If you are using KiwiSaver A) Work with your solicitor B) Submit your applications
review and prepare all limit to ensure you can once your offer has gone savings towards your to complete and submit at least 15 business days
the documents required pay your deposit. unconditional (generally 10% deposit or the purchase your KiwiSaver first home before payment is due if your
Call 0800 269 296 of the purchase price and paid price on settlement day withdrawal application KiwiSaver account is with ANZ
by cheque or bank transfer) you’ll need to: Investments*
22 * If you haven’t lived overseas since you joined KiwiSaver, your processing time will be 5-10 business days. 23BUYING A HOME WITH KIWIBUILD
KiwiBuild is a government-led programme to assist first home Available KiwiBuild homes are sold by direct sale or ballot to
buyers who have been locked out of the housing market with an individuals that meet eligibility criteria.
opportunity to buy their first home. Visit kiwibuild.govt.nz for more information and to register.
PLANNING
Register your interest KiwiBuild will keep Apply for your home Submit your KiwiBuild eligibility Carry out all due diligence on
at kiwibuild.govt.nz you updated on loan pre-approval application. (Note: you don’t the properties that you are
available homes need to wait for confirmation you interested in (see pages 16-19)
qualify before expressing interest
in buying)
IF YOU
SECURE
A PROPERTY
Have your solicitor Talk to your Home Loan Have your solicitor Contact the KiwBuild Confirm with your ANZ Home
complete all documents Coach to confirm full loan review the Sale & developer or real estate Loan Coach that the KiwiBuild
required to finalise the sale approval for the property Purchase Agreement and agent who will guide you properties you are interested
with the KiwiBuild partner share it with your coach through the sale process in meet our lending criteria
Be ready with your deposit (usually If you intend on using your KiwiSaver A) Work with your solicitor B) If your KiwiSaver account is managed by ANZ Investments
the deposit is 10% of the purchase savings towards the deposit or the purchase to complete and submit (ANZ KiwiSaver Scheme, ANZ Default KiwiSaver Scheme and
price, paid by cheque or bank transfer) price on settlement day you will need to: your KiwiSaver first home OneAnswer KiwiSaver Scheme), then submit your application
withdrawal application to ANZ at least 15 business days before your payment is due*
Your ANZ home loan pre-approval is valid for up to 90 days. If you’re paying by bank transfer, make sure your bank transfer limit
TIP TIP
is high enough by checking with your coach or calling 0800 269 296.
24 25
* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be 5-10 business days.APPLY FOR FULL LOAN APPROVAL
If you have found the home you are looking for and you’re
ready to make an offer, or if you’ve been successful in a
KiwiBuild ballot, contact your coach to proceed to full loan
approval. Your coach will help you through the approval
process and provide you with a letter of offer if your
application is approved. This confirms the amount we commit
to lending you and is key to the sale going ahead.
Who you are
Having already validated your identity
and financial position for your 1
pre-approval, as well as understanding
your objectives and requirements, the
property is the final component of your
loan application.
Once we receive your Sale and
Purchase Agreement we may need 2 3
a valuation of your property. This is
usually the final step for moving to
a full loan approval, after which if
everything is satisfied, we send you
a letter of offer.
Your finances The property
After getting legal advice make sure you sign and return all
TIP the contract papers promptly. Feel free to run any questions
past your coach.
26CHOOSING THE RIGHT HOME LOAN FOR YOU
Talk to your ANZ Home Loan Coach so they can help you understand the different types
of loans and interest rates, and determine the loan that meets your needs.
What I want My best option Reasons why
More certainty around Fixed ANZ Home Loan • You can budget with confidence.
repayments and With a fixed ANZ Home • You are protected from interest rate
interest rates Loan your interest rate rises during the fixed-rate period.
Are you the type of person stays the same for your
who would lose sleep if fixed-rate period. • You can make a lump sum payment
interest rates went up, or increase your repayments by up
even just a little? to 5% p.a. of the outstanding loan
balance each year of your fixed-rate
period without incurring an Early
SETTLING
Repayment Recovery.
The ability to make Floating ANZ Home Loan • You can make extra repayments
additional repayments With a floating ANZ Home on your home loan any time you
If you received a little Loan, your interest rate can like – without incurring any fees –
BRINGING IT or a lot of cash either go up or down in line with which could help you repay your
expectedly (for example, changes in the market. loan faster.
HOME
a work bonus) or
unexpectedly (inheritance)
would you pay off more of
your home loan?
Reduce my loan balance ANZ Flexible Home Loan • You have access to credit for any
3
and save on interest An ANZ flexible Home Loan purpose at a competitive flexible
when I can is a revolving credit facility home loan interest rate.
Do you receive irregular on your everyday account – • You can use any extra money
income from a business, one where you put all your to reduce your home loan balance
self-employment or salary into your account. You and save on interest costs.
commission or are you need to be disciplined with
good at managing your finances to get the best
The last stage of buying a house is about your money? out of this option.
confirming your home loan arrangements,
confirming your new home is insured, finalising
the paperwork and other tasks required to get
You may be able to mix and match with different combinations
you across the line on time. TIP of home loans to suit your needs. Your coach can help you
explore the options.
28 29CONFIRM YOUR REPAYMENT STRUCTURE EASY WAYS TO MANAGE YOUR MORTGAGE
Managing your repayments
PRINCIPAL + INTEREST LOAN INTEREST-ONLY LOAN Once your home loan account is set up with ANZ, you need to make sure the
money is there for each loan repayment.
Home loan Home loan
balance balance
ANZ goMONEY AND
INTERNET BANKING
The ANZ goMoney app and
Principal Interest Internet Banking are easy ways
to manage your ANZ accounts
Interest
– for example, you can set up
1 2 3 4 5 Year
automatic payments to your
1 2 3 4 5 Year
home loan servicing account.
You can also check your balance,
make payments, transfer funds,
Table repayments are the most Interest only repayments are pay bills and much more 24 hours
common option. Your repayments exactly as the name suggests – a day, seven days a week.
stay the same over the life of the loan you only pay the interest with
(assuming your interest rate stays each repayment, not paying off
the same). the original loan itself. At the end
of this interest-only period, you’ll You can view the total balance of your home loans in
Here’s how they work: TIP ANZ goMoney and Internet Banking.
revert to a principal and interest
You generally pay more interest at the loan and your repayments will be
start, so initially you’re not building up higher. Choosing an interest-only
much equity (the amount you own) loan can increase the total interest
in your home. However the balance you will pay over the life of the loan. Reducing interest costs
changes over time and later on you If you have some extra cash at any time, you can save on interest and pay off
repay more principal than interest, your home loan earlier.
and your equity builds up faster.
If repayments are made outside of the agreed structure, this may involve certain fees and charges. MAKING A LUMP
SUM PAYMENT
Talk to your coach about
managing your repayments
TALK TO YOUR ANZ HOME LOAN COACH ABOUT
and your ability to make
WAYS YOU CAN PAY DOWN YOUR MORTGAGE. lump sum payments without
incurring fees or costs.
30COMPLETE PRE-SETTLEMENT TASKS SETTLEMENT DAY
While your solicitor handles the settlement of your loan, Settlement day is a big milestone. It’s when the purchase price (less
there are a couple of things you need to think about any deposit paid) is paid to the vendor (seller) and the title transfers
ahead of settlement day. to you. It’s probably one of the most exciting parts of the process.
INSURANCE overseas since you joined KiwiSaver, your On settlement day, most of the work is • Your solicitor will also check that the
processing time will be 5-10 business days. completed behind the scenes by your rates have been paid by the vendor
You will need to arrange house insurance
solicitor. Here’s an overview of what will and are up-to-date.
prior to your settlement day. As we are
FINAL INSPECTIONS happen, including if you’ve used your • Once they receive confirmation that
providing a mortgage for the home, ANZ
KiwiSaver savings for settlement: the vendor has received the money,
must be recorded on the policy as the Before settlement make sure you carry
interested party and you will need to out a final inspection of the property, • Your KiwiSaver first home withdrawal, your solicitor will register the property
provide proof of insurance to your solicitor which can be arranged through the real and if applicable, your First Home grant in your name and arrange for you to
prior to settlement. If you haven’t already, it’s estate agent. You may want to ensure from Kāinga Ora, is paid directly to your receive the keys.
also a good time to talk to us about other any inclusions in the Sale and Purchase solicitor on or before the settlement day.
Once settlement has taken place, your
insurance options to ensure you and your Agreement remain and there has been • Your solicitor will notify the bank of solicitor or real estate agent will notify
family are protected – for example, ensuring no damage to the property since the Sale the amount required to settle the you, and you can then get the keys.
that if you can’t work through injury or and Purchase Agreement was signed by purchase and will arrange for your loan
illness, your mortgage will still be paid. you and the vendor. Inform your solicitor to be drawn down and the money Congratulations, welcome to your
of the outcome of the inspection. transferred to the vendor. new home!
KIWISAVER & FIRST HOME
For more on what to look for in your
GRANT
final inspection, visit settled.govt.nz
Submit your KiwiSaver first home
withdrawal and apply for your REMAINING FUNDS
First Home grant. SETTLING ON YOUR NEW HOME –
Ensure you have transferred any remaining
If your KiwiSaver account is with ANZ funds as per your solicitor’s instructions PICK UP THE KEYS AND MOVE IN!
Investments we require all the required prior to settlement if required. If you are
documents at least 15 business days sending by bank transfer, call 0800 269 296
before payment is due. If you haven’t lived to check your transfer limit.
Check in with your coach to ensure you have completed It’s important to ensure your funds have cleared
TIP all your pre-settlement conditions and everything is on TIP by the agreed time on settlement day to avoid
track for settlement. possible penalties.
32 33HELPFUL CONTACTS
Buying a home is the biggest purchase you will ever make,
so here are some useful sites to help you on your home
buying journey.
Buying and selling Find your local council
settled.govt.nz lgnz.co.nz
You’ll find comprehensive, You’ll find contact details for all
independent information here to local councils listed here – you’ll
guide Kiwis through all aspects need to get hold of yours if you’re
of home buying and selling. after a LIM report from them.
Brought to you by the Real Estate
Authority, the government Find a building inspector
agency that regulates the boinz.org.nz
New Zealand real estate industry. Search for a building inspector
Get your plans sorted in your area.
sorted.org.nz
General information
You’ll find free and independent
cab.org.nz
tools and resources to help get
WE’RE HERE FOR THE LONG TERM your finances Sorted. On the Citizens Advice Bureau
website you may find answers
Kāinga Ora for any general housing and
As you put your feet up and settle in to your new home, let us kaingaora.govt.nz land enquiries, like how body
know how you’re going. The journey doesn’t end at settlement, You’ll find details on how to apply corporates work, or whether
and your ANZ Home Loan Coach may be able to tailor your for the First Home grant and you’re eligible for Energywise
eligibility criteria. funding to help with insulation.
loan to meet your changing needs or talk you through ways to
pay down your loan faster. Find a solicitor KiwiBuild
propertylawyers.org.nz kiwibuild.govt.nz
When the day comes that you want to renovate, buy a bigger Search for a solicitor and pick up Is a government programme
house, invest in another property or restructure your home tips on how to find the right one working to provide 100,000
for you. homes for first home buyers
loan, your coach will be there, ready to help you reach that by 2028.
next milestone.
35HOME BUYING JOURNEY — CHECKLIST
1. Planning – know your buying power • Bidding at auction: remember if you bid
at auction, your offer is unconditional,
Meet with your ANZ Home Loan Coach
so you need to complete all your due
Outline your budget diligence prior to the auction
Work through your deposit options Meet your conditions if your offer
Check your KiwiSaver withdrawal & is accepted
First Home grant eligibility • Fulfil your conditions by completing
a builder’s inspection, valuation or
Request your KiwiSaver eligibility letter
obtain the LIM report (depending
Assess your insurance needs on your conditions)
Get your home loan pre-approved Contact your coach to complete
the home loan process
2. House hunting Contact your solicitor so they can start
Understand what to look for preparing the documents
Location, size, type of home Using your KiwiSaver savings?
Understand the types of land ownership • Work with your solicitor to submit
your KiwiSaver first home withdrawal
Do your homework on potential properties application along with all required
Get an ANZ Property Profile Report documents
Engage a solicitor • Send the required documents to your
KiwiSaver scheme provider at least 15
Complete required inspections and reports business days before payment is due*
• Building inspection Apply for your First Home grant,
• Check the LIM report if applicable
• Consider ordering a property file
Understand the types of offers 3. Settling – bringing it home
Find out how the house will be sold Confirm your home loan and
repayment structure
Understand the pros and cons of
each method Complete pre-settlement tasks
• Complete your pre-settlement
Send your Sale and Purchase Agreement
inspection
to your coach and solicitor
• Confirm your insurances are in place
Apply for full loan approval
• Pay the remainder of the purchase price
Make an offer or bid at auction to the required account
• By offer and negotiation or tender: agree Settlement day – pick up the keys
on your price and conditions and move in!
36 * If your KiwiSaver account is with ANZ Investments, and you haven’t lived overseas since you joined KiwiSaver,
the processing time will be 5-10 business days.Private sales Principal
GLOSSARY
Private sales usually follow the same The amount you borrow, which is used to
process as offer and negotiation – but the calculate your final loan amount (i.e. including
negotiations are made directly with the the interest you will need to pay).
Auction Conveyancing vendor instead of through a real estate agent,
The vendor sets a reserve price, and once Term used to describe the legal work required and you’ll pay the deposit to your solicitor. Sale and Purchase Agreement
this price is reached, the property will be sold for completion of a property transaction – With this type of sale you’re more likely to This is the written contract for sale and
to the highest bidder. Sales at auction are usually a sale or a purchase. require a property valuation report before purchase of the property between the vendor
unconditional – its important to obtain legal finance can be approved. (seller) and the purchaser (buyer) – usually
advice, get full loan approval and do your due Full loan approval handled by a real estate agent and a solicitor.
It’s important that you consult your lawyer
diligence before bidding. Full loan approval means we’ve confirmed The Agreement sets out the amount the
before signing or committing to anything
the amount we can lend you on the specific property will be sold for, any conditions
Body Corporate in a private sale.
property you intend to buy. that must be satisfied before the sale is
A group made up of owners in a block of flats Loan to Value Ratio (LVR) unconditional and settlement date.
If you want to bid at an auction, or you want
or apartments, who maintain and repair the
to make an offer with no finance clause, you’ll The amount you wish to borrow as a Settlement day
building and its shared spaces.
need to get full loan approval first. percentage of the property’s market value.
The date the purchaser’s lawyer pays the
Certificate of Title LVR is calculated by dividing the amount of
Note, a pre-approved home loan is not full vendor’s lawyer the purchase price and the
the loan by the value of the property. For
A document containing the legal description loan approval as you still need our approval for vendor’s lawyer transfers legal title to the
example, if you have a deposit of $100,000 and
of a property, who owns it and who may have the specific property. property to the purchaser. The purchaser
the property is worth $500,000 the means you
registered a mortgage against the title. can get the keys on this date.
need to borrow $400,000 the LVR will be 80%
Land Information Memorandum
($400,000/$500,000=80%). Sale by Tender
Chattels (LIM) report
Items included in the sale of the property and Issued by the local council and provides a Low Equity Premium (LEP) This is the process where prospective buyers
listed in the Sale and Purchase Agreement. summary of information they have on file submit a written offer (tender) by a certain
A fee that is charged when you borrow more
Chattels can include items such as curtains, about roads, flooding or any contamination of date. The tenders are opened after that date
than 80% of the value of the property that’s
carpets and light fittings. the land, rates and resource planning consents. and the vendor decides which (if any) they
available as security for any loans you have
will accept. They may or may not choose to
with us. This is charged as a percentage of
Code of Compliance Certificate Offer and negotiation negotiate with any of the tenderers.
your loan amount on a graduated scale – the
A formal statement issued under the Building You make an offer in writing and then more you’re borrowing against the value of the
Act 2004, that the building work carried out negotiate with the vendor until you agree on Unconditional offer
property, the higher the fee could be.
under a building consent complies with a price and conditions. Your real estate agent An offer with no conditions attached.
that building consent and the New Zealand or your solicitor will help you fill in a Sale and Mortgage You should carry out all due diligence (e.g.
Building code. Purchase Agreement containing your offer and Sometimes used to describe a home loan. LIM reports, inspections, confirming full
any conditions. The vendor can accept your However, this is a legal document that is the
Conditional offer loan approval) and ensure your solicitor has
offer, reject it or make a counter-offer. The real security a borrower gives a lender which is reviewed the Sale and Purchase Agreement
An offer where you specify conditions that estate agent will act as the go-between until registered against the title to the property prior to making an unconditional offer, as
must be met by a certain date before the both you and the vendor reach an agreement. being purchased. The property cannot be you will be legally bound to complete the
Sale and Purchase Agreement is declared sold without the home loan being repaid purchase if your offer is accepted. Your home
unconditional. Common conditions include Pre-approved home loan
and the mortgage removed from the title loan coach will be able to assist you with
obtaining a satisfactory building inspector’s Gives you an indication of what we will lend (discharge of mortgage). confirming full loan approval.
report, confirming finance or obtaining a to you, subject to certain conditions, so you
LIM report. can go house-hunting with confidence. Mortgagee Vendor
A pre-approved home loan is not a loan that The lender who gives the loan to the borrower This is the person selling the property.
has been fully approved – you will still need and receives the security (mortgage) in the
to get full loan approval by satisfying any property from the borrower.
38 conditions that need to be met. 39NOTES
TAKING THAT NEXT STEP
An ANZ Home Loan Coach will help you to apply for a home loan.
You’re in control, because how you apply is up to you:
0800 269 4663
Visit anz.co.nz /homeloancoach
Come into any branch
Arrange for an ANZ Mobile Mortgage Manager to
visit at a time that suits you at anz.co.nz/mmm
Lending criteria, terms, conditions, and fees apply. A copy of terms, conditions, fees and our Reserve Bank Disclosure
Statement are available at anz.co.nz or a request for a copy can be made at any ANZ branch. The contents of this
brochure are subject to change.
This material is for information purposes only. Its content is intended to be of a general nature, does not take into
account your financial situation or goals, and is not a personalised financial adviser service under the Financial
ANZ Property Unlocked Seminars!
!
Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your
Get first-hand insights from experts including solicitors, real estate individual circumstances before you acquire a financial product. If you would like to speak to an ANZ Authorised
Financial Adviser, please call 0800 269 296.
agents and ANZ Home Loan Coaches at a free ANZ Property ANZ insurance policies are underwritten by related and third party insurers. No member of ANZ or its related
Unlocked seminar. To register for a seminar near you, visit companies or any other person guarantees these insurers or any of the products issued by them. ANZ may receive
a commission on any policy it arranges. For full details of cover, including limits, conditions and exclusions, see the
anz.co.nz/propertyunlocked relevant policy document – which can be requested from your coach, available at anz.co.nz or by calling 0800 269 855.
40 This brochure is current as at September 2019 and the details in it are subject to change.ANZ Bank New Zealand Limited 09/19 20696
anz.co.nzYou can also read
