Starting out

Tips and tools to help you plan, budget and save for your first home.

Could your family help?

• Gifting: You can use a cash gift from your parents (or someone else) as part of your deposit. However, you will need to get them to sign a gifting certificate (which your bank can provide) confirming where the money came from and that there is no requirement to repay it.
• Guarantors: Another option, which is an alternative to a cash gift, is for your parents to act as guarantors on your home loan. This may require them to provide their own home as security for your loan and be able to show they can repay the amount they are guaranteeing. There's even the option to just guarantee a portion of your home loan (e.g. 10%) as opposed to the entire home loan amount. This might be more appealing to your parents as it means they're likely to be released from their guarantor obligations sooner.
• Buying with friends and family: If buying a property on your own isn't an option you might like to consider buying with friends or family to split the costs. You can combine your savings or use equity in other properties to provide a joint deposit and then split the cost of payments to make it easier to afford.
• Remember, you should always seek independent legal advice throughout the home buying process but it becomes especially important if your parents (or anyone else) are helping you with your deposit or purchase.

Home loan pre-approval

What is a pre-approval?

A home loan pre-approval is an acknowledgement from the bank that you can borrow an agreed amount, provided the property you purchase meets its home lending criteria and general terms and conditions.

Pre-approvals often come with conditions that you need to satisfy in order to finalise your home loan. Some requirements include providing a registered valuation completed by an approved registered valuer using our panel valuation service and house insurance.

Having an ASB pre-approval upfront can help you get a lot of the hassle out of the way and provide you with reasonable certainty on what you can spend to help you narrow down your search.

You should note that ASB pre-approval letters of offer are valid for up to 90 days from the date of issue, unless specified for a shorter period or a specific property.

Home Loan application tips

So you're thinking about buying your first home? It's a smart move to get a pre-approval for your loan. Here's some handy tips about some of the things we'll need in order to consider your home loan application. This isn't a definitive list, and as you'd expect, all applications are subject to ASB's lending criteria.

We'll need to be sure you have a regular income, so payments on your loan will not put you under financial pressure. If you are employed, we'll ask to see three of your most recent payslips, or if you work for yourself, a copy of your most up to date financial statements prepared by an accountant.

• Your debts and outgoings

So that we can work out your outgoings, we'll need to see statements that show your current balance on loans, credit cards, any hire purchase arrangements and store cards etc. You can use our calculator to work out your average monthly expenditure.

We'll need to see a bank statement showing you have the deposit available. If you're using your KiwiSaver savings, call your provider and ask for a written balance estimate.

• Bank history (If you don't bank with ASB)

We'll need to see your last six months' bank statements. These should show your name clearly (or your joint names), the logo of the bank and a running balance over the period of time.

We'll need two forms of ID, including photo ID, if you are new to ASB. This includes a driver's licence, passport or something similar. If you already bank with us, then we'll just need one form of ID.

A utility bill (no more than 3 months old), a recent bank statement or government agency statement (such as a rates bill) addressed to you at your current address will be fine.