WHAT’S A FIRST HOME BUYERS' REPORT?

The First Home Buyers' Report has been designed and developed to help you understand what your current income and savings will buy you for your first home. Our report will also give you a good idea for how much of the government's First Home Grant program you might be eligible for. 

Ultimately giving you a good idea on your total buying power and how much you can afford. ​​

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INCOME - YOUR DEBT SERVICE RATIO (DSR)

Your bank will assess your personal and rental income and use both today’s and forecasted interest rates to calculate how much debt you can afford to service. Most banks use 35% of gross personal income and 75% of rental income to calculate your DSR (maximum debt you can service with your net income). This percentage can vary for lower/higher income earners.​

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EQUITY - YOUR LOAN TO VALUE RATIO (LVR)

Your bank will assess your current equity based on your usable cash savings, your KiwiSaver account, First Home Buyer Grant (for First Home Buyers), and the equity you have in both your personal and investment properties. Banks will typically lend to 80% on personal homes (90-95% for First Home Buyers), 80% on brand new investment property and 60% on second hand investment property. These percentages can vary based on how much lending you have with a single bank and the locations your properties are in.

When we create your First Home Buyers' Report, we calculate your borrowing power based on your property values, mortgages and cash savings and help you understand what your buying power is.

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