Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Housing Market Unlocked For Young Professionals


Housing Market Unlocked For Young Professionals

100% home lending from BankDirect provides key for Generation X

BankDirect is New Zealand’s first bank to target Generation X New Zealanders with 100% home lending, making it easier for first home buyers to get on the property ladder.

Key features for BankDirect 100% Home Loan package:

100% home lending targeted at people aged 25-39, who meet our standard lending criteria.

Apply for a three month home loan repayment holiday after three years.

90/10 split fixed/variable rate.

Minimum income of $50,000 p.a. for main income earner.

Available for completed homes (no apartments/terraced homes).

BankDirect’s standard, competitive home loan rates apply.

No guarantee or deposit gift is required from parents.

A Low Equity Fee of 1.2% of the loan amount applies.

“It has been well documented that thanks to the boom in house prices, student loan debt and high rent, many young professional New Zealanders are finding it near impossible to buy a first home,” says Jim Anderson, Head of BankDirect. “We understand the pressures this generation face and have developed a home lending package specifically tailored to this group’s financial capabilities.”

The 100% Home Loan package is structured with a 10% variable component with the clear objective to help borrowers pay back 10% of their loan within five years.

‘Generation X’ is a moniker given to 25-39 year olds – a group representing approximately 20% of New Zealand’s population. Jim Anderson says this group also makes up the largest group of New Zealander’s intending to buy a first home.

“The 100% Home Loan package is about helping people fast forward their life goals, whilst managing their financial situation in a prudent manner. BankDirect is already established as a leader in terms of competitive home loan rates, and our direct banking proposition is popular with Generation X.

“The home loan holiday feature should quell many people’s fears that taking on a mortgage might prevent them from being able to achieve other goals, such as starting a family and being able to take maternity leave or taking a mini OE.”

Jim Anderson explains that the 100% Home Loan package simply adds to the bank’s range of products and services.

“BankDirect already has a range of products highly suited for these customers including Low Interest Visa, transaction and savings accounts. The 100% Home Loan package is a logical next step for our core market.

“People interested in the 100% Home Loan package are able to text the word home loan then their e-mail address to BankDirect’s short code 3003, and we will email them all the relevant information, or they can simply call us on 0800 500 400. In addition, we have developed a micro website to provide core information on the home loan package and topical information on home buying, such as five key steps to owning a home.”

100% home loans have proved popular amongst Generation X in other countries including the United Kingdom and Australia. A recent survey showed that in England nearly a quarter of first home buyers had opted for 100% mortgages. Typically, 100% mortgages overseas include a “shared equity” arrangement where the borrower’s financial institution takes some equity in the property.

Ends

Note to editors:

Key Facts

Almost half of Auckland tenants spend 30% or more of their household income on rent

Home ownership in New Zealand has fallen from nearly 74% of all households in 1991 to 65% in June last year.

The home ownership affordability gap has grown to 6.5 times the average wage (up from 4 times the average wage in the 1990s)

200,000 Generation X New Zealanders live in Auckland, Wellington and Christchurch and earn over $40,000 p.a.

BankDirect 100% Home Loan– In Detail

Minimum Employment 6 months

Maximum Loan to Home Valuation Ratio 100%

Minimum Income $50,000 p.a. for main income earner

Pricing 25 year term loan

10% (variable) over 5 years

90% interest only over 5 years (fixed), then principal and interest for remaining 20 years

(Note, if principal and income home loan holiday taken for 3 months after 3 years, the home loan will be restructured over remaining 22 year period)

Low Equity Fee 1.2% of loan amount (can be capitalised)

Risk Insurance Compulsory

Application Fee $500

Registered Valuation Required? Yes

Geography/Dwelling Type Existing completed dwelling – not terraced houses or apartments. Mainly metro regions.

Home Loan Holiday After 3 years, customers will be able to apply for a principal and interest home loan holiday for up to 3 months.

Building Inspection Report A Building Inspection report may be required for houses built between 1990 and 2004.

Other Applicants qualify for a BankDirect Low Interest Visa or Classic credit card.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>



All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>


Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>