Getting some financial help from family to get your deposit, may be another suitable option. A guarantor arrangement is a way for family members to use equity in their own homes to help you, without them having to put up any hard cash.
However no decision about being a guarantor should be taken lightly — the family member’s property could be at risk if you fail to make the loan payments. But, if both parties are comfortable with this arrangement, and with the current market proving a challenge for many first-home buyers, asking the family for help may be the way to go.
An income injection
There’s not much you can do about house prices and interest rates, but you may be able to take steps to increase your income. Consider whether a discussion with your boss is appropriate – when was the last time you got a pay rise at work? Once you’ve prepared your case, arrange to meet with them and discuss those reasons (including any achievements).
For some, extra shifts or even a second job might be another option. Sure, you might work hard already and treasure your time off, but it’s amazing how quickly you can boost your savings with an income boost, even if the extra work is temporary.
For more help with saving for your first home, get in touch with an Adviser.
Top up your KiwiSaver contributions
Increasing your KiwiSaver contributions to 4%, 6%, 8% or 10% is a handy way to give your deposit a much-needed boost — over three or four years that could mean thousands of extra dollars, depending on how much you earn. You can also boost your savings by topping up your account if you come into a little extra money from overtime, a bonus, pay rise or small direct debit amounts. It all helps.
It’s also a good time to check you’re in the right KiwiSaver fund with our Fund Selector. For example, if you’re planning to use your KiwiSaver savings towards buying your first home in the next five years, you may want your savings deposited in a fund that aims to deliver modest, stable returns as opposed to a fund which could be more volatile.
If your KiwiSaver is with us, you can use MyAMP to monitor your account and other investments, and also to top up your KiwiSaver account to boost your balance.
Top up your account online