How to Buy Your First Home
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Description
Buying your first home can be an extremely daunting process with many not knowing where or how to start the journey. Over four weeks, this course will break down the basics of the lending environment, translate lending jargon into plain English, provide insight into how you are viewed by lenders so you can maximise your borrowing power, and show you how you can best set up and utilise your deposit. The course will follow a virtual journey to home ownership, so you start along your own journey feeling informed and empowered.
Expected learning outcomes
- Understand the basics of the lending environment and understand the concepts of a mortgage and how this relates to a first home purchase.
- Understand basic investment principles of fund selection and asset allocation as they relate to KiwiSaver to increase financial literacy and build knowledge to improve your financial outcome.
- Learn how to evaluate your own income and expenditure to develop a robust and personalised budget that will empower you to increase your financial literacy and take control of your own financial future.
- Understand the journey to home ownership, including the individual steps to take and which professionals can offer support at which stages.
Course outline
- Translating lending jargon
- Understanding interest rates
- Understanding equity
What are the different types of lenders and how do they operate?
- Banks and non-bank lenders
What are the steps in the lending journey?
- What does the journey look like, and how long does it take?
- Third parties: solicitors, accountants, real estate agents, builders and valuers.
- Kāinga Ora
Week Two: Step 1: Deposit Breaking down the deposit.
- What can make up a deposit?
- How much deposit do you need?
- What are some ways to build up a deposit?
- How can Kāinga Ora help?
- KiwiSaver
- What is KiwiSaver?
- What is fund selection and the principles behind fund selection?
- How to use your KiwiSaver for your first home.
Week Three: Step 2: Application for lending How does a lender look at a lending application?
- Understanding bank calculations of affordability
- Understanding the influencing factors of affordability and borrowing power
- Income
- Expenses
- Debt obligations
- Credit scores/history
- Account conduct
- How to analyse your own expenditure to create a robust personalised budget
Week Four: Steps 3-5: So, you are approved, now what?
- Finding a house
- Understanding the different property types and titles
- Understanding the sale and purchase process as a buyer and the different purchase pathways (e.g. price by negotiation, deadline sale, auction)
- Who else should be involved and at which points (Solicitor & Building Inspector)
- Meeting your conditions
- Process of unconditional and then settlement
- Choosing a loan structure to suit your personal goals
