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| Thread ID: 76883 | 2007-02-19 08:13:00 | $$ Morgages | dots (24) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 525783 | 2007-02-19 08:13:00 | New to this aspect of life, :rolleyes: And in the near future would like to own my own home . . . but how does one gage how much one will need for a deposit? I know it goes somewhat on your wages, but a deposit helps . but how much do people generally aim for in deposit ? does it depend on how much you want to borrow ? 80% 90% 95% etc? and of course the vital part of what the house costs? so a $100 thousand house you should save how much? or a $200 thousand house you should save how much? thank you . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
dots (24) | ||
| 525784 | 2007-02-19 08:22:00 | The bigger your deposit, the better off you will be by not having to borrow so much. Not all banks lend with minimal deposit and a chat with a morgage broker would give you a better idea of your potential borrowing position. Most of the banks have online calculators that you can play around with the figures to give you an idea on what you can afford - example (www.bankdirect.co.nz). How much can I afford? (www.bankdirect.co.nz) How much could I borrow? (www.bankdirect.co.nz) |
Jen (38) | ||
| 525785 | 2007-02-19 08:26:00 | Hi dots. Without any intention of discrediting Jen's quality post, I strongly suggest you talk to an officer in a bank instead of asking around here. Alternatively, you can check out Sorted.org.nz for details on financial matter. Cheers :) |
Renmoo (66) | ||
| 525786 | 2007-02-19 08:28:00 | www.sorted.org.nz | stu161204 (123) | ||
| 525787 | 2007-02-19 08:28:00 | I have tried a calculator thingy, but couldnt get it too work........ so went back to the personal asking approach. Is it vital to have a deposit? |
dots (24) | ||
| 525788 | 2007-02-19 08:43:00 | If you have a huge disposable income that is secure, a deposit may not always be required... | godfather (25) | ||
| 525789 | 2007-02-19 08:52:00 | A few banks offer no deposit loans for the first home buyer - one example (www.bankdirect.co.nz). Some of the catches: Low Equity Fee - This is charged at 1.2% of the total value of the loan amount. Income - Ideally, the main income earner will have an income of $60,000 (gross) or more per year. |
Jen (38) | ||
| 525790 | 2007-02-19 09:34:00 | Honestly, one should really have approximately 5-10% of the value of the property as a deposit to avoid any fees or charges but considering the prices in NZ and the interest rates, this is a bit tough for a lot of people out there. The best thing to do is to first decide or find out how much you can borrow from a bank or a broker and then figure out a amount that you can realistically raise in a certain period of time that you are happy with. It has to be comfortable for you, in the short term and the long term. I remember my parents paid around 7-7.5% as a deposit but then again we knew someone who paid 65% so there you go. |
beeswax34 (63) | ||
| 525791 | 2007-02-19 09:59:00 | Some Real Estate rip-off merchants have websites that give information that may help. Try this one (www.harcourts.co.nz). Personally I think that unless you're determined to live in the same area for a long long time and you have a big percentage of the home price, it's better to wait and save until you can in fact afford a sizeable deposit. |
Greg (193) | ||
| 525792 | 2007-02-19 19:13:00 | but how does one gage how much one will need for a deposit? I know it goes somewhat on your wages, and of course the vital part of what the house costs? Its not somewhat on your wages, its all about your wages . Never mind what some mad bank will lend you, they don't care if you can pay it or not, because they get the house if you don't or can't . Use the calculators on bank sites . The ones that say how much can I borrow indicates roughly what a bank will give you . You can borrow 100% but they like you to have a large income if you want to do that . They prefer you to have as much deposit as you can get . Then use the ones that say What will my repayments be which is far more important . Because when they calculate what you can borrow, they don't get you to list ALL your expenses, only the main ones . Only you know how much your total ongoing expenses are . So then add in the repayments and that gives you a far better idea of what you can afford . Too many people try and buy too expense a house to be in "trendy" areas or because they think its embarrasing or something to live in a slightly shabby small house . Ignore that, remember you are just starting out . And you will own it . |
pctek (84) | ||
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