In certain markets where properties are moving quickly, your ideal scenario would be to aim at being in a position to purchase and move at the same pace
as the market, that is being ready should a good deal presents itself. It is always better to be prepared for an opportunity and not have one, than
to have an opportunity and be unprepared for it.
Our recommendation would be to have your deposit funds ready – if they are in the form of cash this is simple. But if you are tapping into existing equity
or your Kiwisaver, it makes sense to do the following:
- For utilising equity in an existing property I would recommend getting your loan applications underway early for a top-up so you can be certain you
meet the equity and servicing requirements – but also so that you can get something on paper and that you’re ready to go and act quickly. In an
ideal scenario this would be then set-up as a revolving credit so you can move fast – but if not, a conditional approval subject to signed sale
& purchase agreement, and (if applicable) a rental appraisal for the proposed new property is the next best alternative. - For Kiwisaver I would suggest that you contact your Kiwisaver provider early to find out if you are eligible – and in addition because they can usually
take 10-15 working days to get this finalised – depending on provider. In addition to this it might be worthwhile checking if you’re eligible for
a First Home Grant.
If you’re in a position where the above is sorted – the next best step is to get pre-approved. Have a home loan offer on paper which...
