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Why getting a mortgage shouldn't be put in the "too hard' basket.



Back in March, One Roof ran a survey in conjunction with Consumer Link to see how New Zealanders were feeling about the current state of the house market. The results were pretty bleak with 73% of non-homeowners agreeing that applying for a home loan and being accepted is too hard. More than half of those polled felt they wouldn’t be able to buy a home in the current market.


This is a huge statistic and one that we want to break down. While it is true that rising interest rates, higher house prices and changes to legislation have made things harder for first home buyers, it is definitely still possible to own a home in 2022.


Here’s a process we encourage home buyers to use, and it’s broken down into a few simple steps

Firstly outline what it is you need in a property. How many bedrooms, car spaces, bathrooms etc. What region or part of town would you like to be in? Be realistic about this and work out what you could settle for if need be. The broader the range of properties you are looking at, the better chance you have of finding something.

Take a look at properties in the area you are looking to buy in. What’s the average cost for a property that meets your needs in the region? If you move slightly out or to a different suburb does the price change?


Work out how much you can get together for a deposit. This can come from a number of sources including cash saved, KiwiSaver and Kainga Ora grants (if you meet eligibility criteria) and gifts. Look to optimise this - can you tap into an early inheritance or is there the possibility of an interest free loan from parents?

Next is when you need to get the right advice. Talking to a mortgage advisor allows us to work together to see where you are at with your deposit and what funding you might be entitled to. Based on the property prices for a home that fits your needs, we will run the numbers to see if a loan for that amount is possible. This is done through our own calculators and not through the bank, so there’s no black marks against your name if the result isn’t quite what you hoped for.


Depending on the outcome, we can either give you a thumbs up and proceed on for pre-approval with the banks, or we can make a plan around what needs to change to get you to your goal. Sometimes you might only be a little off and making a change in what kind of property or area you are looking at may make all of the difference in affordability. Other times we can give you guidance around what income or spending changes you might need to make in order to achieve your home ownership goals.


If you feel like buying a home is too hard, we urge you not to give up. Seeking out the right advice will allow you to see if it’s possible for you to buy, and you might be pleasantly surprised! If you’re not quite ready yet, then we can help you map out a path to home ownership. Get in touch with the Better Choice team today and let’s get you on your way.


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