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Call 0800 ARRANGE
Call 0800-ARRANGE (0800-277-2643) for a friendly chat about getting a loan for your first home, or options for restructuring your mortgage.
You might be surprised at how easy it is.
At Edge Mortgages we specialise in Mortgages but we make sure that our clients have the ability to grow their wealth through other avenues as well.
We partner with a top KiwiSaver provider. If you are not in a KiwiSaver scheme right now or would simply like to make sure you are getting the most from your existing one then please let us know and we’ll make sure you are looked after.
What KiwiSaver Is
KiwiSaver is a voluntary retirement savings initiative with a number of generous government incentives, aimed at helping you save for your retirement.
Who can join KiwiSaver
Anyone can join KiwiSaver as long as you are under 65. If you are over 65 and already a member of KiwiSaver then you can transfer to a new scheme. You must be living in New Zealand, be a New Zealand citizen or have permanent residency.
Why You Should join KiwiSaver
It is important to save for your retirement.
Whatever you’re income amount or source we are all getting older and KiwiSaver offer numerous benefits in helping save for retirement.
There are generous government incentives on offer. $500 Kickstart and $521.43 Member Tax Credit per year.
- Life expectancies are increasing and many of us are living well into our 80’s.
- New Zealand Superannuation alone may not allow you to enjoy your retirement or continue the lifestyle you are currently used to. As at 1 April 2012 NZ Super was $348.92 per week, or $563.80 a couple (after tax).
- If you’re hoping to maintain your current lifestyle when you retire you need to start saving now. If you’re earning a salary of $60,000 a year (pre-tax), you generally will need two thirds of your salary for each year of your retirement ($40,000) before allowing for inflation. NZ Super is only around $20,803 for an individual or $31,449.60 for a couple (pre-tax).
What You Will Get If Your Join KiwiSaver
$500 for joining. Everyone who joins KiwiSaver for the first time gets a $500 kick-start into their KiwiSaver account from the Government.
A 3% contribution from your employer. If you’re contributing to KiwiSaver from your salary or wages, your employer is required to put in a minimum of 3% of your Before Tax Pay (less employer’s superannuation contribution tax).*
Member Tax Credits of up to $521.43 every year. For every $1 you put in to your KiwiSaver scheme, the Government will put in 50 cents up to a maximum of $521.43 per year, if you’re 18 or over. This is called a Member Tax Credit.
First home withdrawal. If you’ve never owned a home, and you’ve been a KiwiSaver member for at least three years, you can take out all of the money both you and your employer have put in, as well as all of the investment returns, to help buy your first home.*
Up to $5,000 first home subsidy. On top of the first home withdrawal, if you’re eligible, you may also receive up to $5,000 as a subsidy from the Government towards your first home.*
Conditions apply, with changes from 1 October 2013. Visit the Housing New Zealand website for conditions.
Talk to a home loan expert!
We can help you make the best financial decision for you.
How much will you be able to borrow?
First up, and if you are like most people, one of the biggest questions will be about how much you will be able to borrow.
This is down to your income and your commitments. The banks will decide how much they will lend to you based on your total income against your total outgoings. The interest rates that are applicable at the time will be also be taken into account when deciding how much you will be able to borrow. But every bank has different lending criteria. This means that one bank may lend you a lot more that another on exactly the same day, given exactly the same circumstances.
Restrictions on loans for people who don’t have a 20% deposit recently become an additional challenge for first home buyers. This is where a mortgage broker can help, by working through all the different options available to make sure you get that dream home and the best deal. And the good news is, if you’ve been turned down for a loan by your bank (even if you have been a customer of theirs for a for a long time) it doesn’t mean that you won’t be able to get a loan from anyone else.
There are different mortgage structures that can allow you to pay your mortgage off sooner, or provide you with some certainty about your payments.
Should you fix your mortgage interest rate for a certain length of time or have some of it on a floating interest rate? Which should you chose? What about repayment options?
The key to all this is to get an independent, expert overview of your options so you get the best deal given your individual circumstances.
At Edge Mortgages we know a number of different lender’s calculators, criteria and options. We can let you know, in one quick phone conversation, much you can afford to borrow, so just give us a call.