To work out how much you need to save, you can start by looking at the average cost of the type of home you’d like to
buy, and aim to save at least twenty percent of this amount.
While banks might lend up to ninety or ninety-five percent of a home’s value, having at least a twenty percent deposit
usually makes it easier to get a mortgage, and you may also save on low equity fees and margins.
To work out how long it will take to reach your goal you’ll need to set up a savings plan. It’s a good idea to talk to your
bank or financial adviser, as they can help you set up a savings plan that’s right for you.
On the Westpac website you’ll find helpful home loan calculators that can help you work out mortgage and repayment
calculations.
By increasing your savings you can reach your goal even quicker.

If you’re a couple who saves two hundred dollars per week between you, then in five years you will have
saved fifty-two thousand dollars plus interest.

If you’re able to increase your savings to three hundred dollars per week, then in five years you will have
saved seventy-eight thousand dollars plus interest!
Although it may seem like it takes a long time to save a deposit, the larger your deposit, the less interest you will end
up paying.
To keep your savings on track, consider setting up a separate savings account with the deposits set up as automatic
payments.
Then as your savings start to grow, keep motivated by monitoring the balance and tracking your progress towards
your goal.
You may be able to apply for the government’s Welcome Home Loan scheme supported by Housing New Zealand.
This offers loans for people with only a ten percent deposit. You can go online to the Welcome Home Loan website
to find out more about lending criteria, terms and your eligibility.
If you’ve been contributing to KiwiSaver you may be able to use some of these funds to contribute towards the
purchase of your house.
Your family may offer to help you reach your goal, this could come in the form of a cash gift, or they may help your
finance application by using their home or savings as part security on your loan.
The information is provided for general information purposes only and does not take account of your particular financial situation or
goals. Before acting on this information and advice, you should consider its appropriateness, having regard to your particular
financial situation and goals.
© Westpac New Zealand Limited 2014.