HOME BUYER

HANDBOOK

HELPING YOU AT EVERY

STEP OF YOUR JOURNEY
 HOME
BUYER
HANDBOOK

The home buying process can be challenging, but

with the right help, you can move through each step
with confidence. In this guide, ANZ breaks down the
home buying process into easy-to-understand steps.

DON’T GO IT ALONE
First things first, get in touch with a home loan expert. They’ll be in your
corner at every stage of the home buying journey, from getting a pre-approval
through to getting your keys.

This brochure contains information only. It’s not intended as financial advice or as a recommendation of any of these
options for you and your situation. 1
 THE HOME BUYING PROCESS

PL ANNING FINDING SETTLING

KNOW YOUR BUYING
THE ONE BRINGING IT

POWER HOUSE HUNTING HOME

1 2 3
• Meet with a home loan expert • Understand what to look for • Confirm your home loan and
• Understand the cost of buying and owning a home • Do your homework on potential properties repayment structure
• Put together your support team • Ask for an ANZ Property Insights Report • Complete pre-settlement tasks:
• Work through your deposit options. • Engage a solicitor – If applicable, submit your KiwiSaver
For example, if you’re a first home buyer: first home withdrawal and/or First
• Complete required inspections and reports
– If applicable, check your KiwiSaver withdrawal Home Grant applications
• Understand different types of offers
and First Home Grant eligibility – Confirm your insurances are
• Find out how the house will be sold in place
– Request your KiwiSaver eligibility letter from your
• Follow the steps in the journey map on page – Carry out your pre-settlement
KiwiSaver provider. 20 of this handbook. inspection
Get your home loan pre-approved – Set up your settlement payment.
Apply for full loan approval
• Remember to discuss your insurance needs. Settlement day –
pick up the keys and move in!
2 3
 MEET WITH A HOME LOAN EXPERT

Your home loan expert can take you You can also find a range of tools and
through your loan options and help with calculators to help you understand
your plan of getting to where you want to what you may be able to afford at
be. They’ll give you an approximate idea of anz.co.nz, including how much you
what you could borrow, work through your could borrow and how much your
deposit options, and what your repayments repayments may be.
might look like.

PLANNING
THE COSTS OF BUYING AND OWNING A HOME

Buying costs – one off Owning costs – ongoing

KNOW YOUR BUYING
• Solicitor fees • Home loan repayments

POWER •
•
•
LIM reports
Property Files
Building inspections
•
•
•
Council rates
Insurance – home and contents
Utilities and maintenance
• Moving costs • Body corporate fees

1
• Utility setup and (if buying a Unit Title).
reconnecting services.

It’s important to factor in all of the costs You can also find helpful budgeting tools
of buying and owning a home. Your at sorted.org.nz.
The first stage of buying a home involves home loan expert might be able to
reviewing your finances to understand what help you understand the costs and set
your budget.
you can afford to spend.

4 5
 USING YOUR KIWISAVER SAVINGS
If you’re buying your first home, you may be able to use your KiwiSaver savings to get you
PUTTING TOGETHER YOUR SUPPORT TEAM there sooner. You’ll need to have been a KiwiSaver member for at least three years. There
are two ways KiwiSaver can help:
Aside from a home loan expert, you will need:
1. Make a first home withdrawal from your KiwiSaver account.
• A solicitor – There are a number of legal whether it’s the one for you. You can find
2. Apply for a First Home Grant from Kāinga Ora (previously known as Housing New Zealand).
matters associated with purchasing a a list of building inspectors in your area at
home, so it’s important to involve your boinz.org.nz.
solicitor before you make an offer or bid at FIRST HOME WITHDRAWAL
• Family and friends – Family and friends
an auction. If you need to find one check can help you throughout your home Your KiwiSaver savings can be used either to buy your first home or buy land to build your
out propertylawyers.org.nz. Legal fees buying journey, whether that be giving first home on (but if you’ve already bought land you can’t use your KiwiSaver savings).
vary, so ask around and get an estimate. their honest feedback on potential
• Building inspector – A building inspector properties, supporting you at an auction Are you eligible?
can tell you about the condition of a or celebrating with you once you’ve
property, which might help you decide bought your new home. Have you been a member You need to be a member
of KiwiSaver or a complying of KiwiSaver or a complying
superannuation fund for
N superannuation fund for at least
at least three years? three years before you can apply.

DEPOSIT OPTIONS Is this the first time you’re

withdrawing from a KiwiSaver You can only make one first
Y scheme to buy a home, or land
N home withdrawal.
What size deposit will you need? Getting the deposit together for a new
to build a home on?
Generally, you’ll need a 20% deposit for home can be challenging. If your savings
an ANZ Home Loan, but depending on and/or existing property equity are not
your situation and the type of home enough, there are other options available. As a previous home owner, you
you’re buying, this will differ – so talk to You may be able to get help from: may still be eligible. Kāinga Ora can
Will this be your first time owning
your home loan expert. • KiwiSaver (if you’re an eligible first Y a home or a piece of land?
N determine if you’re eligible as
a previous home owner. Find out
You can also work out how much you home buyer) more at kaingaora.govt.nz.
could borrow by using our home loan • Family (through gifting, loans and
calculator at anz.co.nz/homecalculator. guarantees).
First home withdrawals are only
Is the home or land you’re looking
Y to buy in New Zealand?
N available for homes or land located
in New Zealand.

You must intend to live in the home

Do you intend to live in the home
or on the land you’re buying. The
Y you’re buying, or build a home to N first home withdrawal can’t be used
live in on the land you’re buying?
to purchase an investment property.

Great! Sounds like you

6 Y may be eligible. 7
 How much can you withdraw? Once you’ve found the home or land FIRST HOME GRANT
If you’re eligible, you can apply to you want to buy, it’s important to apply
Kāinga Ora offers First Home Grants for The Government pays this directly to
withdraw the total amount in your for your first home withdrawal early to
eligible KiwiSaver members to help them your solicitor on settlement day – it
KiwiSaver account, except for $1,000 and ensure your savings are available when
buy their first home. doesn’t come out of your KiwiSaver
any amount transferred from an Australian needed. If you’re eligible, you can choose
account. For details on how to apply,
complying superannuation scheme. to put your KiwiSaver savings towards To find out if you meet Kāinga Ora’s
visit kaingaora.govt.nz/firsthomegrant
the deposit you pay to the vendor (seller) eligibility criteria, visit
If you lived overseas since joining while your Sale and Purchase Agreement kaingaora.govt.nz/firsthomegrant. Please allow plenty of time for Kāinga Ora
KiwiSaver and didn’t have permanent is still conditional (generally 10% of the to process your application.
residence in New Zealand over that time, How much can you get?
purchase price). Or alternatively, once
you won’t be able to withdraw any of your offer goes unconditional, you can The amount of the First Home Grant
the Government contributions received put your KiwiSaver savings towards the depends on whether the house you’re
during that period. purchase price at settlement. buying is existing or newly built.
What do you need to do? You’ll need to:
When you apply for your home loan
• Talk to your New Zealand solicitor – EXISTING HOME NEW BUILD
pre-approval, you generally need to
they can help you through the process
provide a KiwiSaver eligibility letter.
This letter includes confirmation of • Take the application form to your $5,000 $10,000
your eligibility to make a first home solicitor so they can help you Maximum Maximum
withdrawal, as well as your estimated complete it and gather all the
withdrawal amount. required documents
• Check the processing time for
Your KiwiSaver scheme provider can
KiwiSaver first home withdrawals with OR
give you an eligibility letter and a first
your KiwiSaver scheme provider – if
home withdrawal application form.
this is ANZ Investments, submit your
If your KiwiSaver account is with ANZ
application at least 15 business days
Investments, you can request these at
(10 business days if you haven’t lived
anz.co.nz/fhwrequest or call 0800 736 034.
overseas) before payment is due. $1,000 $2,000
For each year you’ve been a For each year you’ve been a
contributing member of KiwiSaver contributing member of KiwiSaver
Any Australian Your first home
Your KiwiSaver
– $1,000 – Super you have = withdrawal
balance
transferred amount
Applying for a First Home Grant
! If you apply for a First Home Grant, you’ll need to provide Kāinga
If you’re looking at withdrawing your KiwiSaver savings, it’s a Ora with proof of your regular contributions to your KiwiSaver
good time to review your fund choice. If your KiwiSaver account account. You can get your transaction history from ANZ Internet
is with ANZ Investments you can use our risk profile tool to see Banking. To register for access, visit anz.co.nz/managekiwisaver.
if you’re in the right fund at anz.co.nz/riskprofiletool.

8 9
 GETTING HELP FROM FAMILY

There are three ways your family members may be able to help you get into your home
– gifting, loans and guarantees.
Gifting Guarantees GET YOUR HOME LOAN PRE-APPROVED
This is when a family member gives you In some cases, we may be able to take
some of the money for your deposit. a mortgage over a home owned by A pre-approved home loan allows you to house hunt with
If someone is giving you money for your someone else, for example your parents,
confidence, giving you an idea of your potential buying
deposit, we’ll need confirmation that as extra security for your loan. Where this
you won’t need to repay that money. happens, we’ll need a guarantee from the power and your approximate price range.
Both you and the family member(s) owners of that home. Under a guarantee,
concerned should get independent legal someone agrees that they will be Who you are
It gives you an indication of what
advice before taking up this option. responsible for some or your entire loan
ANZ is willing to lend you, subject to
if you’re not able to pay it for any reason. 1
Loan from family certain conditions.
With this option, we will require a Deed There are a number of conditions that
There are a couple of things to assess
of Acknowledgment confirming that both you and the family member(s)
when considering
the loan will not have to be repaid until providing the guarantee will need to
a pre-approval:
the property is sold. Your family member meet, and you’ll both need to get legal
advice before taking up this option. 1. Validate your identity; and
should talk to their solicitor about getting
2. Assess your financial position, income, 2 3
this sorted.
living expenses and, if you’re a first home
buyer, your eligibility for a KiwiSaver first
home withdrawal.
You will need to supply proof of address, a
valid photo ID and proof of regular income.
These can be provided through utility
bills, a passport or New Zealand driver’s Your finances The property
licence, pay slips and last 90 days of bank
statements.
A pre-approval makes up two of the three To start the pre-approval process, simply
parts of a full loan application; your identity contact a home loan expert.
and your financial position – so it gets you
off to a great start. All that remains is to
find the right property – and that’s what
the next section is all about.

Your pre-approval is valid for up to three months. If you’re

house hunting for longer, contact a home loan expert who can
help you with getting your financial position reassessed.
10 11
 ASSESSING YOUR INSURANCE NEEDS
Once you’ve found a new home you’ll Protecting your lifestyle
need to insure it before you can draw What would happen if you suffered from
down your home loan, so it’s a good an accident or illness that prevented you
idea to think about this early. Buying a from working, were made redundant or
home can mean a new chapter in your life, died? Life & Living Insurance can help
so you may also want to consider how ensure that you and your family are
other insurances could help protect you protected. Insurance experts help you
and your family’s lifestyle – now and in put together the right combination of
the future. insurance options for your situation –
and your budget. For example:
Protecting your new home
House insurance protects you if your • Life Cover helps ensure your family will
be looked after financially if the worst

FINDING
house gets damaged or affected by
things like a fire, flooding or natural should happen to you
disaster. You must have adequate house • Critical Illness cover helps provide
insurance in place before settlement

THE ONE
financial security for you and your
day. Insurance experts can help you family if you’re diagnosed with one of
understand what you need to do and 12 serious conditions, including cancer,
potential insurance costs for the house stroke or a major heart attack
type and location you’re looking for.
• Living Expense Cover provides help HOUSE HUNTING
Protecting your valuable possessions with your living expenses if you can’t
Contents insurance covers the things work due to accident or illness
you own (other than your house), such
2
• Redundancy Cover can be taken with
as furniture, clothes, appliances, etc. If
Living Expenses Cover and helps ensure
you don’t have contents insurance, it’s a
you can keep paying the mortgage and
good idea to get this in place so you have
other bills if you’re made redundant.
peace of mind should something happen
to your belongings.
Once you’ve got your deposit and
pre-approval sorted, you can start house
hunting with confidence.

Talk to an insurance expert for assistance.

12 13
 PROPERTY TYPES TYPE OF LAND OWNERSHIP

Different property and land ownership There are a number of land ownership types and what it will mean for you while
types come with different considerations. types in New Zealand. The more you search for your first home and before
commonly known types are: Freehold, making an offer.
Leasehold, Cross lease and Unit titles.
See settled.govt.nz for more details about
It’s important to talk to your solicitor and
the types of land ownership.
get their advice about these different

THE RIGHT PROPERTY FOR YOU

Existing houses Apartments and terraced houses Building or buying off the plans
Existing houses are generally less When you buy an apartment or a townhouse Building a new home or buying a new
complicated in terms of the purchase you may become a shared owner of any home off the plans can be a great way
process and your loan. common areas of the property (i.e. a to get the home you’ve always wanted.
member of the body corporate). The process for building or buying off the
plans comes with extra considerations.
Before making an offer, you may wish to
So we’ve created a separate Building and
understand the financial position of the
Renovating Handbook to help you through
body corporate and your responsibilities
the journey. Download the handbook at
as a member. The vendor can provide this
anz.co.nz/buildingandrenovating.
information.

14 15
 DOING YOUR HOMEWORK ON
POTENTIAL PROPERTIES

Buying a home is a big commitment, so it pays to do thorough ENGAGE A SOLICITOR

research before you make an offer.
Once you’ve found a potential property, here’s an overview
It’s a good idea to have a list of your ideals to rate a property against. Some things you
may like to consider: of how your solicitor can help.
• Does it get good sunlight (it pays to visit at different times of the day)?
• What is the neighbourhood like (including neighbouring houses)? Purchasing by auction them and send them to your KiwiSaver
A bid at auction is an unconditional offer, scheme provider. Once your withdrawal
• Is it close to facilities like shops or transport? has been approved, your provider will
so be sure to talk to your solicitor first. They
• Does it have insulation? How is it heated? will advise you of all the due diligence you send your withdrawal amount to your
• What is the general condition of the building, roof, and outside areas? Are there need to complete before the auction day. solicitor’s bank account.
any potential issues that may need to be addressed? Building a new home or buying off
Purchasing by offer and negotiation
• Is the property insurable? or tender the plans
Your solicitor will review the Title These types of contracts can be
For more details about researching a property, visit settled.govt.nz.
information, LIM report and advise more complex, so it’s important to
you if you need to consider adding involve your solicitor from early on.
any conditions to your offer. Typical Always have your solicitor review any
conditions include: contracts before signing them. Our
Before you make an offer on a property, it’s important to factor • subject to confirming finance Building and Renovating Handbook
in the cost of house insurance. Certain regions may not only (obtaining full loan approval – has more information about these
have higher premiums, but there may be some restrictions on more on page 26) options. Download a copy at
obtaining insurance. anz.co.nz/buildingandrenovating.
• obtaining a LIM (Land Information
Memorandum) report (if you haven’t Finalising the sale
already) If you are successful for any purchase
• being satisfied with the results of a method your solicitor will be responsible
builder’s inspection. for transferring the property to you
(conveyancing) and completing the
KiwiSaver first home withdrawal transactions necessary for settlement
If you’re using your KiwiSaver savings, (you will be able to pick up the keys
you’ll give your first home withdrawal following settlement).
forms to your solicitor, who will finalise

If you don’t already have a will, talk to your solicitor

about putting one in place.
16 17
 COMPLETE REQUIRED UNDERSTANDING TYPES OF OFFERS
INSPECTIONS AND REPORTS
There are two options when making an offer on a property;
There are a range of inspections and reports available for a fee conditional and unconditional. You should always have your
to help you research a property you’re interested in. solicitor check any Sale and Purchase Agreements before
you make an offer.
Building inspections request a copy. Depending on the type
A registered building inspector will of sale, the agent may provide you CONDITIONAL OFFER UNCONDITIONAL OFFER
inspect the house and check whether it with a copy of the LIM report and the
Record of Title (particularly if you’re A conditional offer is one where you An unconditional offer is one where
is structurally sound, the condition of the
buying at auction). Check with your can specify conditions that must be there are no conditions attached to
wiring and if there are any water tightness
solicitor regarding the date and contents. met before you agree for the Sale and your offer. You should carry out all due
issues. The cost of a builder’s inspection
The cost of a LIM report can vary from Purchase Agreement to be declared diligence (e.g. LIM reports, inspections,
depends on the level of detail you require
around $200-$395* and tend to be more unconditional. Conditions could include confirming full loan approval) and ensure
and generally start at around $350*.
expensive in larger cities. making your offer subject to obtaining your solicitor has reviewed the Sale and
Check the LIM report (Land a satisfactory building inspector’s report, Purchase Agreement prior to making an
Information Memorandum) Consider ordering a property file confirming finance (obtaining full loan unconditional offer, as you will be legally
A LIM is a report issued by the local A property file provides any approval – more on page 26) or obtaining bound to complete the purchase if your
city or district council which provides correspondence with the council a LIM report. Conditions always have offer is accepted.
a summary of all the information the regarding the property and helpful plans. a timeframe attached and must be
council has on file in regards to roads, A property file does not replace a LIM completed by the specified date.
flooding or any contamination of the report and your solicitor will advise you
land, rates and resource planning whether one is required.
consents. LIM reports are available
Property file costs range from $10 to $60* FIND OUT HOW THE HOUSE WILL BE SOLD
through your local council. You can
depending on the council. There are four main ways to buy a house in New Zealand; and each has pros and cons.
request it yourself or your solicitor can
Check out our journey maps on the following pages for more information.
Remember that making an offer may lead to a legally binding contract if your offer is
accepted. Buying a house is an exciting time, but it’s important that your solicitor checks
your Sale and Purchase Agreement before you sign it.

The cost of inspections and reports can start to add up. Experience the home buying process
So be sure it’s a property you are really interested in You can register for a free ANZ Property Unlocked Seminar to get
before requesting these. first-hand insights from experts including solicitors and real estate
agents. To find a seminar near you, visit anz.co.nz/propertyunlocked.

*Please note that costs quoted are estimates only and can vary depending on region and are subject to change.
18 19
 OFFER AND NEGOTIATION TENDER

If you want to make an offer, the real estate agent or your solicitor Anyone who is interested in the property submits a written offer
will help you fill in a Sale and Purchase Agreement, which contains (tender) by a certain date. Typically, all the tenders are opened at once
your offer and any conditions. The vendor (seller) can accept your and the vendor decides which (if any) they will accept. They may also
offer, reject it or make a counter-offer. The real estate agent will act as choose to negotiate with any of the tenderers, however you might not
the go-between until both you and the vendor reach an agreement. always get this chance so consider this when making your offer.

BEFORE
YOU MAKE
AN OFFER
Apply for your Do your homework Carry out all due Apply for full loan approval Decide on a price
home loan on potential diligence and (you can do this later if you and conditions (if
pre‑approval. properties. inspections, including make your offer conditional any) for your offer.
insurability, (unless on finance) – see page 26.
you’re including them
as a condition).

IF YOUR
OFFER IS MAKING
ACCEPTED AN OFFER
Have your solicitor If you set conditions If the property is being If you are purchasing by Have your solicitor review
review and prepare as part of your offer, sold by tender you offer and negotiation you the Sale and Purchase
all the documents arrange for them to may not get the may have the option to Agreement and share
required. be met. chance to negotiate. negotiate with the vendor it with your home loan
if they counter your offer. expert.

Check your bank transfer Be ready with your deposit Provide proof of If you are using KiwiSaver 1) Work with your solicitor 2) Submit your applications
limit to ensure you can once your offer has gone house insurance. savings towards your to complete and submit at least 15 business days
pay your deposit. unconditional (generally 10% deposit or the purchase your KiwiSaver first home before payment is due if your
Call 0800 269 296. of the purchase price and paid price on settlement day withdrawal application. KiwiSaver account is with ANZ
by bank transfer). you’ll need to: Investments*.

20 * If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days. 21
 AUCTION

An auction is where you bid against other people until only one negotiate with the highest unsuccessful bidder. If you buy a home at
bidder is successful. All interested buyers turn up on auction day and auction, the sale is unconditional – so you need to obtain legal advice
bid. The vendor (seller) will have a reserve price, and once this price is and do your due diligence (e.g. inspections, valuations) before you
reached, the property is on the market and will be sold to the highest bid, have finance approved ahead of the auction and be ready with
bidder. If it doesn’t reach the reserve price, the vendor may choose to your deposit on the day (generally 10% of the purchase price).

AHEAD
OF THE
AUCTION
Apply for your Do your homework Carry out all due Have your solicitor review the Apply for full
home loan on potential diligence and Sale and Purchase Agreement loan approval –
pre‑approval. properties. inspections, including and share it with your home see page 26.
insurability. loan expert.

ON
AUCTION
DAY
Provide proof of house If successful – sign If the reserve price is not met, Start bidding Be ready with your Check your bank transfer
insurance to your the Sale and Purchase the vendor may choose to – know your deposit (generally limit to ensure you can
home loan expert (they Agreement and send it negotiate with the highest price limits. 10% of the purchase pay your deposit.
can help with this). to your home loan expert unsuccessful bidder. price and paid by Call 0800 269 296.
and solicitor. bank transfer).

YOU CAN’T USE YOUR KIWISAVER SAVINGS TOWARDS THE

DEPOSIT IF YOU’RE BUYING AT AN AUCTION. INSTEAD, IF YOU ARE
If you are using KiwiSaver 1) Work with your solicitor 2) Submit your applications
savings towards your to complete and submit at least 15 business days ELIGIBLE FOR A WITHDRAWAL, YOUR KIWISAVER SAVINGS WILL
purchase price on settlement your KiwiSaver first home before payment is due if
BE PAID TOWARDS THE PURCHASE PRICE ON SETTLEMENT DAY.
day you’ll need to: withdrawal application. your KiwiSaver account is
with ANZ Investments*.
22 23
* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days.
 BUYING A HOME WITH KIWIBUILD

KiwiBuild is a government-led programme to assist eligible first Available KiwiBuild homes are sold by direct sale or ballot to
home buyers with an opportunity to buy their first home. individuals that meet eligibility criteria.
Visit kiwibuild.govt.nz for more information and to register.

PLANNING

Register your interest KiwiBuild will keep Apply for your home Submit your KiwiBuild eligibility Carry out all due diligence on
at kiwibuild.govt.nz. you updated on loan pre-approval. application. (Note: you don’t the properties that you are
available homes. need to wait for confirmation you interested in (see pages 16-19).
qualify before expressing interest
in buying).

IF YOU
SECURE
A PROPERTY

Have your solicitor Talk to your home loan Have your solicitor review the Contact the KiwiBuild Confirm with your home
complete all documents expert to confirm full loan Sale and Purchase Agreement developer or real estate loan expert that the KiwiBuild
required to finalise the sale approval for the property. and share it with your home agent who will guide you properties you are interested
with the KiwiBuild partner. loan expert. through the sale process. in meet our lending criteria.

Be ready with your deposit If needed, provide proof If you are using KiwiSaver 1) Work with your solicitor 2) If your KiwiSaver account is managed
(usually the deposit is 10% of house insurance to savings towards the deposit to complete and submit by ANZ Investments then submit your
of the purchase price, paid your home loan expert or the purchase price on your KiwiSaver first home application to ANZ at least 15 business days
by bank transfer). (they can help with this). settlement day you will withdrawal application. before your payment is due*.
need to:

If you’re paying by bank transfer, make sure your bank transfer limit
Your ANZ Home Loan pre-approval is valid for up to 90 days.
is high enough by calling 0800 269 296.
24 25
* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days.
 APPLY FOR FULL LOAN APPROVAL

Before your offer can be unconditional, you will need to apply

for full loan approval for your chosen property.

Having already validated your identity and Who you are

financial position for your pre-approval, 1
the property is the final component of
your loan application.
A home loan expert will help you through
the process and provide you with a letter
of offer if your application is confirmed. 2 3
Your letter of offer is key to the sale
going ahead.
Note that in some cases, ANZ may require
a property valuation before they can
confirm full approval.
Your finances The property

BRIDGING FINANCE
‘Bridging’ or ‘tideover’ loans are a short • How long will you need the new
term option for buying the next home bridging loan for?
before the current home is sold or settles. • How certain are you that the sale
Bridging finance will mean you’ll have two on your current home will happen
loans until the sale of your existing property. as expected?
So, there are several factors you may Talk to a home loan expert about your
want to consider when deciding whether options when buying and selling a house,
bridging finance is the right option: and if bridging finance is right for you.
• Can you afford it? Will you be able to
meet the repayments on your existing
home loan and your new bridging loan?

After getting legal advice make sure you sign and return all
the contract papers promptly. Feel free to run any questions
past a home loan expert.
26 27
 CHOOSING THE RIGHT HOME LOAN FOR YOU
There is more to consider than just the interest rate. The way you structure your home loan
may help you pay less interest and could take years off your home loan. It’s important to
tailor your home loan to your circumstances, as one size doesn’t fit all. A home loan expert
can help you choose a loan structure to suit your financial situation.

ANZ Home Loan ANZ Home Loan ANZ Flexible

with a fixed rate with a floating rate Home Loan

Know exactly how much Allows you to make extra Is designed for customers
your home loan repayments repayments to pay off your who are disciplined with
will be by fixing your rate for home loan sooner. their money. When managed
a set period. carefully, this account may

SETTLING
enable them to pay less
interest and pay off their
loan faster.

BRINGING IT The interest rate is fixed for a

set period. During that period
The interest rate on a floating
home loan can move up or
This home loan is a revolving
credit facility on your ANZ

HOME
your repayment amount down in line with market transactional account, a bit
stays the same. changes – which means like an overdraft.
your repayment amount
When the fixed rate period You can pay money into
can change.
ends, you can choose to fix it whenever you like and
it at another rate, or let your The interest rate is generally redraw it if you need to.

3 loan roll onto the floating rate.

Fixed home loans generally
higher than fixed home
loan rates but you have
the flexibility to make extra
You’re charged interest on
the outstanding balance, but
there are no set repayments.
have lower interest rates
repayments whenever you
than floating or flexible It often has the highest
like – a minimum repayment
home loans, but they offer interest rate and a monthly
amount may apply.
less flexibility to make extra fee, but it offers the most
At the last stage of buying a home you’ll confirm repayments. flexibility.
your home loan structure and house insurance, and
complete paperwork and other tasks required to
get you across the line on time.
Use ANZ’s home loan repayments calculator to work out
the impact of increasing your repayments at
28 anz.co.nz/repaycalculator. 29
 CONFIRM YOUR REPAYMENT STRUCTURE EASY WAYS TO MANAGE YOUR HOME LOAN
A home loan is a big commitment – so once you’ve got one, it pays to review it from
time to time.
PRINCIPAL + INTEREST LOAN INTEREST-ONLY LOAN
Managing your repayments
Home loan
balance
Home loan
balance
Once your home loan account is set up with ANZ, you need to make sure the money
is there for each loan repayment.

ANZ goMONEY AND

INTERNET BANKING
Principal Interest The ANZ goMoney app and ANZ Internet
Interest Banking are easy ways to manage your
ANZ accounts – for example, you can set
1 2 3 4 5 Year 1 2 3 4 5 Year up automatic payments to your home
loan servicing account. You can also
Table repayments are the most Interest only repayments are check your balance, make payments,
common option. Your repayments exactly as the name suggests – transfer funds, pay bills and much more
stay the same over the life of the loan you only pay the interest with 24 hours a day, seven days a week.
(assuming your interest rate stays each repayment, not paying off
the same). the original loan itself. At the end
of this interest-only period, you’ll
Here’s how they work:
revert to a principal and interest You can view the total balance of your home loans in
You generally pay more interest at the loan and your repayments will be
start, so initially you’re not building up ANZ goMoney and Internet Banking.
higher. Choosing an interest-only
much equity (the amount you own) loan can increase the total interest
in your home. However the balance you will pay over the life of the loan.
changes over time and later on you
INCREASING YOUR REPAYMENTS OR MAKING A LUMP SUM
repay more principal than interest,
and your equity builds up faster. Increasing repayments when
circumstances change or making a
If repayments are made outside of the agreed structure, this may involve certain fees and charges. lump sum payment could also help
pay off a loan sooner. This can help you
pay off your loan faster and save on
interest costs. Talk to a home loan expert
first as there may be a charge depending
TALK TO A HOME LOAN EXPERT OR VISIT on your loan type.
ANZ.CO.NZ/PAYITFASTER TO FIND OUT HOW YOU COULD Reducing your repayments
SET UP YOUR HOME LOAN TO PAY IT OFF FASTER. If you experience financial pressure,
talk to us early. We may have options to
help reduce your repayments for a while.
30 31
 COMPLETE PRE-SETTLEMENT TASKS SETTLEMENT DAY

While your solicitor handles the settlement of your loan, Settlement day is a big milestone. It’s when the purchase price (less
there are a couple of things you need to think about any deposit paid) is paid to the vendor and the title transfers to you.
ahead of settlement day. It’s probably one of the most exciting parts of the process.

INSURANCE lived overseas since you joined KiwiSaver, On settlement day, most of the work is • Your solicitor will also check that the
your processing time will be up to completed behind the scenes by your rates have been paid by the vendor
You will need to arrange house insurance
10 business days. solicitor. Here’s an overview of what will and are up-to-date.
prior to your settlement day. As ANZ is
happen, including if you’ve used your • Once they receive confirmation that
providing a mortgage for the home, ANZ
FINAL INSPECTIONS KiwiSaver savings for settlement: the vendor has received the money,
must be recorded on the policy as the
interested party and you will need to Before settlement make sure you carry • Your KiwiSaver first home withdrawal, your solicitor will register the property
provide proof of insurance to your solicitor out a final inspection of the property, and if applicable, your First Home Grant in your name and arrange for you to
prior to settlement. If you haven’t already, it’s which can be arranged through the real from Kāinga Ora, is paid directly to your receive the keys.
also a good time to talk to your insurance estate agent. You may want to ensure solicitor on or before the settlement day.
Once settlement has taken place, your
expert about other insurance options to any inclusions in the Sale and Purchase • Your solicitor will notify the bank of solicitor or real estate agent will notify
ensure you and your family are protected – Agreement remain and there has been the amount required to settle the you, and you can then get the keys.
for example, ensuring that if you can’t work no damage to the property since the Sale purchase and will arrange for your loan
through injury or illness, your mortgage and Purchase Agreement was signed by to be drawn down and the money Congratulations, welcome to your
will still be paid. you and the vendor. Inform your solicitor transferred to the vendor. new home.
of the outcome of the inspection.
KIWISAVER AND FIRST
For more on what to look for in your
HOME GRANT
final inspection, visit settled.govt.nz.
If applicable, you’ll need to submit your
KiwiSaver first home withdrawal and REMAINING FUNDS
apply for your First Home Grant. SETTLING ON YOUR NEW HOME –
Ensure you have transferred any remaining PICK UP THE KEYS AND MOVE IN!
If your KiwiSaver account is with ANZ funds as per your solicitor’s instructions
Investments, they need all the required prior to settlement if required. If you are
documents at least 15 business days sending by bank transfer, call ANZ on
before payment is due. If you haven’t 0800 269 296 to check your transfer limit.

Check in with your home loan expert to ensure you It’s important to ensure your funds have cleared
have completed all your pre-settlement conditions and by the agreed time on settlement day to avoid
everything is on track for settlement. possible penalties.
32 33
 HELPFUL CONTACTS

Buying a home is the biggest purchase you will ever make,

so here are some useful sites to help you on your home
buying journey.

Buying and selling Find your local council

settled.govt.nz lgnz.co.nz
You’ll find comprehensive, You’ll find contact details for all
independent information here to local councils listed here – you’ll
guide Kiwis through all aspects need to get hold of yours if you’re
of home buying and selling. after a LIM report from them.
Brought to you by the Real Estate
Authority, the government Find a building inspector
agency that regulates the boinz.org.nz
New Zealand real estate industry. Search for a building inspector
Get your plans sorted in your area.
sorted.org.nz
General information
You’ll find free and independent
cab.org.nz
tools and resources to help get
your finances Sorted. On the Citizens Advice Bureau
website you may find answers
Kāinga Ora for any general housing and
kaingaora.govt.nz land enquiries, like how body
You’ll find details on how to apply corporates work, or whether
for the First Home Grant and you’re eligible for Energywise
eligibility criteria. funding to help with insulation.

Find a solicitor KiwiBuild

propertylawyers.org.nz kiwibuild.govt.nz
Search for a solicitor and pick up Is a government programme to
tips on how to find the right one enable more home ownership
for you. opportunities for New Zealanders.

ANZ has ways to help make your new home warmer, drier and
more energy efficient. Visit anz.co.nz/healthyhomes to find
out more.
34 35
 HOME BUYING JOURNEY — CHECKLIST

1. Planning – know your buying power • Bidding at auction: remember if

you bid at auction, your offer is
Meet with a home loan expert
unconditional, so you need to
Outline your budget complete all your due diligence prior
Work through your deposit options to the auction

Check your KiwiSaver withdrawal and Meet your conditions if your offer
First Home Grant eligibility is accepted
• Fulfil your conditions by completing
If applicable, request your KiwiSaver
a builder’s inspection, valuation or
eligibility letter
obtain the LIM report (depending
Assess your insurance needs on your conditions)
Get your home loan pre-approved Contact your home loan expert to
complete the home loan process
2. House hunting Contact your solicitor so they can start
Understand what to look for preparing the documents
Location, size, type of home Using your KiwiSaver savings?
Understand the types of land ownership • Work with your solicitor to submit
your KiwiSaver first home withdrawal
Do your homework on potential application along with all required
properties documents
Engage a solicitor • Send the required documents to
Complete required inspections and your KiwiSaver scheme provider
reports at least 15 business days before
payment is due*
• Building inspection
Apply for your First Home Grant,
• Check the LIM report
if applicable
• Consider ordering a property file
Understand the types of offers 3. Settling – bringing it home
Find out how the house will be sold Confirm your home loan and
Understand the pros and cons of repayment structure
each method Complete pre-settlement tasks
Send your Sale and Purchase • Complete your pre-settlement
Agreement to your home loan expert inspection
and solicitor • Confirm your insurances are in place
Apply for full loan approval • Pay the remainder of the purchase
Make an offer or bid at auction price to the required account
• By offer and negotiation or tender: Settlement day – pick up the keys
agree on your price and conditions and move in.

36 * If your KiwiSaver account is with ANZ Investments, and you haven’t lived overseas since you joined KiwiSaver, 37
the processing time will be up to 10 business days.
 GLOSSARY Private sales Principal
Private sales usually follow the same The amount you borrow, which is used to
process as offer and negotiation – but the calculate your final loan amount (i.e. including
negotiations are made directly with the the interest you will need to pay).
Auction Conveyancing vendor instead of through a real estate agent,
The vendor sets a reserve price, and once Term used to describe the legal work required and you’ll pay the deposit to your solicitor. Sale and Purchase Agreement
this price is reached, the property will be sold for completion of a property transaction – With this type of sale you’re more likely to This is the written contract for sale and
to the highest bidder. Sales at auction are usually a sale or a purchase. require a property valuation report before purchase of the property between the vendor
unconditional – it’s important to obtain legal finance can be approved. (seller) and the purchaser (buyer) – usually
advice, get full loan approval and do your due Full loan approval handled by a real estate agent and a solicitor.
It’s important that you consult your lawyer
diligence before bidding. Full loan approval means ANZ has confirmed The Agreement sets out the amount the
before signing or committing to anything
the amount we can lend you on the specific property will be sold for, any conditions
Body Corporate in a private sale.
property you intend to buy. that must be satisfied before the sale is
A group made up of owners in a block of flats Loan to Value Ratio (LVR) unconditional and settlement date.
If you want to bid at an auction, or you want
or apartments, who maintain and repair the
to make an offer with no finance clause, you’ll The amount you wish to borrow as a Settlement day
building and its shared spaces.
need to get full loan approval first. percentage of the property’s market value.
The date the purchaser’s lawyer pays the
Certificate of Title LVR is calculated by dividing the amount of the
Note, a pre-approved home loan is not full vendor’s lawyer the purchase price and the
loan by the value of the property. For example,
A document containing the legal description loan approval as you still need our approval for vendor’s lawyer transfers legal title to the
if you have a deposit of $100,000 and the
of a property, who owns it and who may have the specific property. property to the purchaser. The purchaser
property is worth $500,000 it means you need
registered a mortgage against the title. can get the keys on this date.
to borrow $400,000 and the LVR will be 80%
Land Information Memorandum
Chattels ($400,000/$500,000=80%). Sale by Tender
(LIM) report
Items included in the sale of the property and Issued by the local council and provides a Low Equity Premium (LEP) This is the process where prospective buyers
listed in the Sale and Purchase Agreement. summary of information they have on file submit a written offer (tender) by a certain
A fee that is charged when you borrow more
Chattels can include items such as curtains, about roads, flooding or any contamination of date. The tenders are opened after that date
than 80% of the value of the property that’s
carpets and light fittings. the land, rates and resource planning consents. and the vendor decides which (if any) they
available as security for any loans you have
will accept. They may or may not choose to
Code Compliance Certificate with us. This is charged as a percentage of
Offer and negotiation negotiate with any of the tenderers.
your loan amount on a graduated scale – the
A formal statement issued under the Building You make an offer in writing and then more you’re borrowing against the value of the
Act 2004, that the building work carried out negotiate with the vendor until you agree on Unconditional offer
property, the higher the fee could be.
under a building consent complies with a price and conditions. Your real estate agent An offer with no conditions attached.
that building consent and the New Zealand or your solicitor will help you fill in a Sale and Mortgage You should carry out all due diligence (e.g.
Building code. Purchase Agreement containing your offer and Sometimes used to describe a home loan. LIM reports, inspections, confirming full
any conditions. The vendor can accept your However, this is a legal document that is the
Conditional offer loan approval) and ensure your solicitor has
offer, reject it or make a counter-offer. The real security a borrower gives a lender which is reviewed the Sale and Purchase Agreement
An offer where you specify conditions that estate agent will act as the go-between until registered against the title to the property prior to making an unconditional offer, as
must be met by a certain date before the both you and the vendor reach an agreement. being purchased. The property cannot be you will be legally bound to complete the
Sale and Purchase Agreement is declared sold without the home loan being repaid purchase if your offer is accepted. A home
unconditional. Common conditions include Pre-approved home loan
and the mortgage removed from the title loan expert will be able to assist you with
obtaining a satisfactory building inspector’s Gives you an indication of what we will lend (discharge of mortgage). confirming full loan approval.
report, confirming finance or obtaining a to you, subject to certain conditions, so you
LIM report. can go house-hunting with confidence. Mortgagee Vendor
A pre-approved home loan is not a loan that The lender who gives the loan to the borrower This is the person selling the property.
has been fully approved – you will still need and receives the security (mortgage) in the
to get full loan approval by satisfying any property from the borrower.
38 conditions that need to be met. 39
 NOTES

TAKING THAT NEXT STEP

Talk to a home loan expert who will help you

to apply for a home loan.

Lending criteria, terms, conditions, and fees apply. A copy of terms, conditions, fees and our Reserve Bank Disclosure
Statement are available at anz.co.nz or a request for a copy can be made at any ANZ branch. The contents of this
brochure are subject to change.
This brochure is provided by ANZ for information purposes only. We recommend seeking financial advice about
ANZ Property Unlocked webinars
! Get first-hand insights from experts including solicitors and real
your situation and goals before getting a financial product. To talk to one of our team at ANZ, please call 0800 269
4663, for more information about ANZ’s financial advice service or to view our financial advice provider disclosure
statement see anz.co.nz/fapdisclosure
estate agents at a free ANZ Property Unlocked webinar. To register ANZ insurance policies are underwritten by third party insurers. No member of ANZ or its related companies or any
for a webinar, visit anz.co.nz/propertyunlocked. other person guarantees these insurers or any of the products issued by them. ANZ may receive a commission on
any policy it arranges. For full details of cover, including limits, conditions and exclusions, see the relevant policy
document – which is available at anz.co.nz or by calling 0800 269 855.
40 This brochure is current as March 2022 and the details in it are subject to change.
ANZ Bank New Zealand Limited 03/22 H220201

anz.co.nz