Buying a house on a low budget

[dwgknz]

Mortgage brokers do a similar thing I believe, they present you in to the bank in a way that makes you look like a good investment. We did some research after we got knocked back a couple of times then worked with the lady at the bank to frame up the proposal in a really good way. I was surprised it went through but the process was an eye opener.

We wanted a lifestyle block but they wanted between 25% and 50% deposit.

If they are saying no I'd go and speak to your bank directly. Show them your savings and the money coming in and I'd expect they'd be upfront about what you needed to do to get the mortgage.

[Manks]

Gosh. I spoke to a Kiwibank mortgage advisor over the phone and they said they'd pre-approve us for a mortgage of over $1m!! When I picked myself up off the floor from laughing, I told them I lived in the real world and actually wanted a life as well as pay a mortgage...

[alibaba]

Went and spoke to Kiwibank, based on our current income they can give us only 160k with no deposit on welcome home loan. But when I have a full time job in a few months they will give upto 200k deposit free + upto150K with 15% deposit. Or if we have 5% saving by then upto 400,000 mortgage. So will have to start saving and being impatient. Good thing is the market quiet unsure at the moment and no interest raise foretasted for at least few months to come, thanks to the Europeans!

[aboylikedave]

Yes - ask a mortgage broker, that is exactly what they are good for, to find a lender who can respond to your particular circumstances. Not saying the answer will be yes, but they will know what is out there. Should normally be no fee to you - they get their fee from the lender. We needed rental income taken into account which not all lenders do.Our broker found the right lender for us.

[vixxann]

I good point mentioned was are you in the location where you will find work and be sure you want to settle there for some time?
Your freedom is so much more when you are renting and having been someone that was tied to a location WAY longer than we wanted to be just because our house was stuck on the market -- I would think seriously about the timespan I wanted to be somewhere before buying.
Yes you are "wasting" rent at the moment but there are a lot of expenses in buying (and selling)property and overall it might be worth you renting for just a bit longer until you have saved deposit, got work and established where you want to buy/settle.

Patience is a virtue!