You may still be able to get a home loan if you have less than the standard 20% deposit. There are a few additional considerations we can talk you through.
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A low equity interest rate premium will apply to all home loans with less than 20% deposit (more than 80% Loan to Value Ratio – LVR).
If you have:
A valuation will be a condition of your home loan if your deposit is less than 20%. You can organise this with your banker. The price of a valuation will depend on the valuer, urgency and property. You’ll need to pay for the cost of the valuation, your banker can give you guidance on how much you may need to budget for this expense. Once the valuation is complete you and your banker will receive a copy.
Due diligence means investigating the property to check that everything is in order, and it should be completed regardless of the size of your deposit.
You should do your due diligence before purchasing the property. This may include ordering a builder’s report, record of title and a LIM report. It’s important to include these costs in your budget when shopping for a home.
Apply for a new BNZ home loan of $250,000 or more when buying your first home and you could get a minimum of $5,000 cash back.^
Our Home Loan Partners can provide expert advice on choosing your first home loan, and helping you through the buying process. They’re mobile, and available at a time and place that suits you.
There are various ways to get help with purchasing a home if you have a low deposit.
Your family might be able to help with lending, gifting or loaning money towards a deposit, or acting as guarantors.
If you’re buying a completed new build, deposit requirements can be more flexible.
We’ve teamed up with organisations that provide shared ownership programmes to help first home buyers with a low deposit.
If you need some help call 0800 275 269.
All home loans are subject to our lending criteria (including minimum equity requirements), terms and fees. Interest rates are subject to change. Floating rates can change at any time, including after you enter into your contract. BNZ will publicly announce any changes to floating interest rates. An establishment fee of up to $150 may apply.