Case study two

Rawiri

Rawiri

Rawiri bought his first home with a Welcome Home Loan and KiwiSaver.

Rawiri is looking at buying his first home. Since graduating from university just over a year ago, he has been employed in a local office in Hastings and has earned $60,000 in the last 12 months.

On the advice from his parents, he joined KiwiSaver in 2007 and has contributed the minimum percentage of his earnings towards KiwiSaver from his part-time jobs. He also contributed towards KiwiSaver from the Study Link finance he received while at university.

Rawiri is looking at buying a home for around $200,000. His parents are gifting him a sum of $10,000 and they have this confirmed by a gifting certificate. He has applied for a KiwiSaver HomeStart grant pre-approval and has been confirmed that he is eligible, providing he buys a home for $300,000 or less.

As most of his contributions have been from part-time work or Study Link, only around $7,000 can be withdrawn from his KiwiSaver account. He has spoken to a Welcome Home Loan lender about a Welcome Home Loan and has been advised he meets the criteria providing he has a deposit of at least 10 percent of the house purchase price, and that it is within the house price cap for the region.

He asked the Welcome Home Loan mortgage manager if the gift from his parents of $10,000, a KiwiSaver HomeStart grant pre-approval of $5,000 and his KiwiSaver first-home withdrawal of $7,000 would be acceptable as at least a 10 percent deposit on a house of no more than $200,000. It was and he was advised he could receive a Welcome Home Loan of $178,000.

 

House purchase price $200,000
Deposit amount $22,000 ($10,000 + $5,000 + $7,000)
Deposit available 11%
Welcome Home Loan $178,000 (89% LVR)