At Olympia Property, we believe that securing the right home loan is as important as finding the perfect property. The financing journey can feel daunting, but with clarity, research, and professional guidance, you can make confident decisions that set you up for long-term success. Below, we break down the key steps and considerations to help you navigate the world of home financing.
1. Assess Your Financial Readiness
Before you approach lenders, get a clear picture of your current finances:
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Income & Employment Stability
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How long have you been in your current role?
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Do you have secondary income streams?
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Savings & Deposit Size
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Aim for at least 20% deposit to avoid Lenders’ Mortgage Insurance (LMI).
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Factor in emergency savings separate from your deposit.
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Existing Debts & Expenses
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Credit cards, personal loans, student debt—these affect your serviceability.
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Track monthly living costs (utilities, groceries, subscriptions).
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Pro tip: Use a budgeting app or spreadsheet to map out income vs. outgoings over 3–6 months.
2. Understand Types of Home Loans
Different loan structures cater to different needs. Here’s a quick comparison:
| Loan Type | Description | Ideal For |
|---|---|---|
| Variable Rate | Interest fluctuates with market; repayments can vary. | Borrowers seeking flexibility and redraw. |
| Fixed Rate | Interest locked in for 1–5 years; repayments are stable. | Those who prefer certainty in budgeting. |
| Split Loan | Portion fixed, portion variable—best of both worlds. | Borrowers wanting balanced risk & reward. |
| Interest-Only | Repay only interest for a set term (usually 1–5 years). | Investors maximizing cash flow. |
3. Compare Interest Rates & Fees
Every basis point matters over a 25–30 year term:
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Interest Rate vs. Comparison Rate
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The comparison rate includes fees; use it to compare apples with apples.
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Upfront & Ongoing Fees
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Application/origination fees
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Monthly/annual account-keeping fees
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Early repayment or exit fees
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Offset & Redraw Facilities
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Offset accounts reduce interest by linking savings to your loan.
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Redraw lets you access extra repayments if needed.
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Key insight: A lower headline rate may hide higher fees—always check the comparison rate.
4. Explore Government Schemes & Grants
In New Zealand, first-home buyers can benefit from:
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KiwiSaver First-Home Withdrawal
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Withdraw contributions (and employer contributions) after three years.
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Must meet eligibility criteria and minimum balances.
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First Home Grant
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Up to $10,000 for individuals, $20,000 for couples.
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Available if you’ve contributed to KiwiSaver for at least three years.
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Welcome Home Loan (WHL)
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Lenders have a lower deposit requirement (5%) for eligible buyers.
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No LMI is charged under this scheme.
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Action step: Speak with a mortgage adviser to confirm your eligibility and application process.
5. Factor in Additional Costs
Your purchase price is just one part of the total outlay:
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Legal & Conveyancing Fees (approx. $1,000–$3,000)
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Building & LIM Reports (approx. $500–$1,200)
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Valuation Fees (approx. $350–$600)
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Insurance (home and contents)
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Moving Costs
| Expense | Estimated Cost |
|---|---|
| Conveyancing & Legal | $1,000 – $3,000 |
| Building & LIM Reports | $500 – $1,200 |
| Valuation | $350 – $600 |
| Insurance (annual premium) | $800 – $2,000 |
| Moving | $500 – $2,000 |
6. Seek Professional Advice
While online calculators are helpful, nothing replaces tailored guidance:
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Mortgage Brokers
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Access to multiple lenders and loan products.
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Can negotiate rates and fees on your behalf.
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Financial Planners
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Help align your home loan with broader financial goals (retirement, investment).
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Tax Advisors
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Important for investors to maximise deductibility and structure ownership correctly.
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Olympia Property Advantage: We partner with reputable brokers and advisers to ensure you get personalised, competitive, and compliant financing solutions.
7. Get Pre-Approval & Prepare Your Application
A lender pre-approval gives you confidence and negotiating power:
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Submit Documentation
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Proof of income (payslips, tax returns)
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Bank statements (3–6 months)
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Asset & liability statements
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Receive Conditional Approval
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Sets your borrowing cap, but not final until property is selected.
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House Hunt with Certainty
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Sellers take you more seriously.
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You move quickly when you find the right home.
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8. Review, Adjust & Refinance Over Time
Your financial situation and market conditions will evolve:
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Regular Rate Reviews
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Shop around every 2–3 years for better deals.
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Refinancing Strategies
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Switch to a lower rate or different loan structure.
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Consolidate debts or access equity for renovations.
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Loan Portability
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Keep your existing loan if you move, avoiding break fees.
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Long-term tip: Commit to an annual finance check-up to ensure your home loan remains fit for purpose.
Your Next Step with Olympia Property
Making informed financing decisions sets the foundation for homeownership success. At Olympia Property, we not only guide you to the perfect property but also connect you with skilled advisers who secure the right loan for your needs.
Ready to take the next step?
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Contact us to discuss your home-financing goals.
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Book a consultation with our trusted mortgage partners.
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Download our Home Financing Checklist for instant clarity on the documents and steps you need.
Embark on your home-buying journey with confidence—because the right financing decision can make all the difference.
