First home buyers

Buying your first home is exciting – but getting the financial stuff right can be daunting. We take the effort out of shopping around and negotiating the best rate for your loan, and can support you through the steps of buying your first home.

For our Nelson and Tasman clients, our office in Richmond is next to the Library so you can speak to a real person and get local advice. We can also help clients who prefer to meet virtually or are based elsewhere in New Zealand.

Mortgage illustration with two people in front of house

Why use a mortgage adviser – why not just go to the bank?

We know the best interest rates and criteria for different banks and non-bank lenders, and we negotiate for you.

Your bank might have turned you down – but it’s still possible that another bank might say yes.

We help guide you the whole process of getting your first mortgage. We find the best rate for you, help with the paperwork and advise you how to best structure the mortgage. All at no cost.

How much can I borrow?

The amount you can borrow for a home depends on a couple of things: how much you can afford to repay on your current income, and how much a lender will lend on a property.

Lenders want to be sure that you’ll be able to keep up with your repayments and still have enough money left over to live on. They don’t all use the same method to work this out, however.

Which is why talking to a mortgage broker who can choose the right bank to suit your individual circumstances can make all the difference as to whether you can get the mortgage - or not.

Book a meeting now to find out how much you can borrow

Thinking about investing or mortgage on a property investment

How much deposit do I need?

Typically, you’ll need to save 20% of the property’s purchase price as a deposit. While it’s possible to buy a home with a smaller deposit of 10% or even 5%, these options carry greater risks for both the borrower and the lender, making them more challenging to get approved.

A larger deposit demonstrates financial discipline, increases your equity in the property, and may give you access to more favorable interest rates, ultimately reducing your total borrowing costs over the life of the loan. It's still possible to buy a home with a deposit of 10% or even 5%. You may need to meet extra requirements, but we can guide you through those details to help improve your chances of approval.

You might also be able to access your KiwiSaver to use towards a deposit.

Ultimately, the best deposit for a mortgage balances your ability to enter the property market without overextending your finances, while ensuring manageable long-term affordability.

Meet our mortgage experts

We love helping first home buyers get into their first home!

Our mortgage team of Stuart Pope, Chevaun Marshall and Rebecca Gray bring years of professional and personal experience for clients getting on the home ownership ladder.

All our staff are paid a salary, not commission. We're focused on service and great outcomes, not commission.

It's an exciting time and a big learning journey and we're here to help you along the way.

Book now for personalised FREE advice

Chevaun Marshall

Mortgage Adviser. BBus, CPA

mortgages@castletrust.co.nz

Chevaun is a Mortgage Adviser with a wealth of skills. As well as a qualified Financial Adviser, she is also a qualified accountant with a Bachelor of Business majoring in Accounting and CPA. Having experienced the benefits of using a mortgage broker personally, she wanted to be able to help others with the same level of service that will get them into their own homes. She also has experience working for a large property investment company in Brisbane.

Book with Chevaun

Stuart Pope

Mortgage Adviser

mortgages@castletrust.co.nz

Stuart has two decades of experience as a Mortgage Broker – from helping first home buyers to complex commercial and multi-property investments. He previously owned his own mortgage broking business but simply became too popular and too busy. His attempt at retirement was short lived however, and he became a tutor for NZQA Certificate in Money Management. Joining Castle Trust lets him do something he enjoys but with additional office support.

Before Stu became a Mortgage Broker he owned his own hydraulic engineering business.

He is a member of Financial Advice New Zealand.

Book with Stuart

We'll help get you a preapproval

A preapproval means you know how much the bank is prepared to lend to you based on your savings and income. It also speeds up the process when you’ve found a house to buy. You can also get an idea of your borrowing power using our handy mortgage calculator.

You do need to understand any conditions attached to the preapproval and we can help explain those thoroughly.

Book your FREE initial consultation to find out how much you can borrow

Financial adviser giving financial advice to a client

What our clients say

“The fact that David and I were able to get the keys to our first home was thanks to the team at Castle Trust. We had a bit of a more difficult situation with our financial set up, having expertise in the industry made it easier for us.”

Lucy, Nelson

What’s important to the bank?

There are several things mortgage providers will look at when assessing your home loan application, including your credit rating and your financial history.

Each lender has their own criteria that they assess against – some are more favourable than others – which is why it’s helpful to use a mortgage adviser who can guide you to the best fit.

Your income

One of the most important factors is your ability to repay the loan. Your income and expenses are both assessed and the bank will consider how much free cash you have at the end of the month to cover a loan payment, after you’ve paid your other expenses. Keeping your spending low in the 3 months prior to application helps.

Other debt

Getting on top of existing debt can make a big difference in your borrowing power. Hire purchases, car loans, store cards, credit cards, or student loans all affect how much a bank will lend. Minimising these obligations can help strengthen your application.

Bad credit rating

Banks are wary of people with poor credit, however, you might still have options with a non-bank lender – we can help if this is the case.

The property itself

It’s location, it’s construction quality and condition and age – all are factors that the bank will consider.

Getting the deposit together

Savings

Banks like to see a history of Savings as part of your deposit. If you haven’t started saving, there’s no time like the present, setting up a direct credit to your Savings account every week is an example of something you can do today to start saving for your deposit. Talk to us and we can help you structure your finances to get your deposit together in the best possible way for a your home loan application.

Kiwisaver

If you’ve been contributing for over 3 years, you may be able to use some of your KiwiSaver money towards your deposit (in some situations, you can even use it if you’ve previously owned a home). You can use employee and employer contributions and tax credits but you can’t use the $1,000 kickstart. Using your KiwiSaver is a great option to get your deposit together – it’s something we do all the time and can help you with, regardless of where your KiwiSaver is.

If you’re planning on buying your first home as an investment property and don’t intend to live in it, then you won’t be able to use your KiwiSaver savings. You might want to look at the mortgages for investment properties page.

The Kāinga Ora First Home Loan might also make getting into your first home easier as you only need a 5% deposit. Certain criteria apply (including maximum household income and minimum deposit amounts). You can read more info here.

Help from family

There are three main ways family can help:

Gift you the money
Loan you the money – ideally with a loan agreement in place to protect everyone
Act as a guarantor for some or all of your loan. Some banks have a particular type of loan that makes this arrangement easier.

First home loans

First Home Loans are offered by selected banks and are underwritten by Kāinga Ora. This means you might need as little as 5% deposit. However the criteria are quite restrictive and we’d encourage you to read more here.

What’s the process with talking to a mortgage broker at Castle Trust about my mortgage?

Online application

Completing our online application form gives us the information we need to be able to give you feedback on your mortgage prospects, and the amount you could potentially borrow.

Phone or in person discussion

We’ll then have a phone discussion, zoom call or in person meeting in our Richmond or Motueka office to talk you through your options and answer any questions you might have.

Finalise application and submit to the most appropriate lender

Once you're ready, we'll submit your application for pre-approval to the bank. We also have a range of non-bank lenders we can use when the mainstream banks say 'no'.

Start house hunting or complete your purchase

With your preapproval in hand, you can then go out and find your new home!

We’ll negotiate interest rates and help define the best lending structure

Once you’ve found the house you want to buy, we’ll help you with the purchase process and arranging your finance – making sure you’ve got the best interest rate and mortgage structure to suit your needs.

The mortgage journey starts here

We are here to make this go as smoothly as possible so you end up with the best mortgage to suit your own situation.

Learn more about the steps to getting your mortgage

Frequently asked questions

What will it cost?

Nothing! For most clients there is no charge. The bank pays us (because it saves them having to do the paperwork that we take care of). The only time you’ll pay a fee is if we have to use a non-bank finance company – but we’ll tell you well in advance before you’re committed to anything. Our disclosure information is available here.

Choosing the mortgage structure

Choosing the right structure for your mortgage is really important. Fixed or Floating? Revolving Credit or Table Loan? And what even is an Offset Loan? We know it’s confusing which is why we’ve got a whole page dedicated to answering these questions – but more importantly, we’ll help work out what’s right for you.

Do I need to have found a house before I contact a mortgage adviser?

No – in fact it’s better if you do it before you start looking!

Can I get a mortgage with less than 20% deposit?

Yes – you can get a loan with a deposit as low as 5%. Talk to us about the best way to approach the lenders to get your loan approved.

“Stu and the team at Castle Trust made my first ever mortgage an absolute breeze. They were always available on the end of the phone to answer any of my rookie questions happily. They even have an in house insurance adviser who will contact you to see whether they can help with anything. I would highly recommend them to anyone looking to get a mortgage and who appreciates first class service. A++.”

SK, Administrator, Brightwater