The largest improvement in New Zealand home affordability in a decade is attracting more first home buyers, although the high deposit rates required by banks remains a hurdle, according to a survey today.
The quarterly jump continued the improvement in affordability since early 2008, based largely on current low mortgage rates. The report also took into account house prices and average weekly wages.
“Anecdotal evidence, based on recent increases in house sales volume, suggests more first time home buyers are now entering the market and taking advantage of improved affordability,” report authors Bob Hargreaves and Fong Mee Chin said.
“However, some potential first home buyers are being shut out of the market while they save for the larger deposit (20 percent) now required by most lenders.”
Central Otago Lakes remained the least affordable region, followed by Auckland and Nelson/Marlborough, while Southland remained the most affordable, followed by Manawatu/Wanganui and Otago.
There are many ways to cover your home loan deposit some of which include the KiwiSaver initiative, family equity products and deposit bonds, your local loan market mortgage broker can outline these options and help you find a suitable mthod to to cover your deposit. Simply click here to talk to your local mortgage broker.