Nolans HomeFront
1st Floor Treble Court, Palmerston Rd, Gisborne
Phone:- 06 867 1209


As well as thinking about what sort of house you would like, and where you want to live the price is an important consideration.
Banks will generally lend up to 80% of the purchase price. Depending on your asset backing the banks will even lend you 100% of the purchase price.

The sticking point is that you do have to pay the bank back''.with interest!

The amount the bank will lend you depends on the security you can offer them and how much you can afford to pay in monthly repayments.
If you have made up your mind to buy a house the next step is to visit your bank. Take your income information with you and details of any debts you may have. (HPs and the like). The bank will be able to give you an idea of the amount you can afford to borrow (and repay) on your income.

The amount the bank will lend you and your savings for a deposit will give you an idea of the price you can pay for a house.
The bank also uses the actual purchase price as a guide and will readily lend you 80% of the purchase price. The bank will sometimes lend you more than 80% if you need to (depending on affordability) but there may be extra requirements ' registered valuations, low equity, premiums and mortgage insurance.

Taking on a bank mortgage is a financial commitment over a 15 to 25 year period.

You owe it to yourself and your family to ensure you can afford the bank repayments and still have a life to enjoy. If it will be a struggle to meet the bank repayments and your other financial commitments in life it may be better to hold off on your dream while you save for a bigger deposit.