Home Buyer Handbook

HOME BUYER

HANDBOOK

HELPING YOU AT EVERY

STEP OF YOUR JOURNEY

HOME

BUYER

HANDBOOK

The home buying process can be challenging, but

with the right help, you can move through each step

with condence. In this guide, we break down the

home buying process into easy-to-understand steps.

This brochure contains information only. It’s not intended as nancial advice or as a recommendation of any of these

options for you and your situation.

DON’T GO IT ALONE

First things rst, get in touch with an ANZ Home Loan Coach. They’ll be in your

corner at every stage of the home buying journey, from getting a pre-approval

through to getting your keys.

Call 0800 269 4663

Visit anz.co.nz/homeloancoach

Book an appointment with an ANZ Home Loan Coach at any branch

Arrange for an ANZ Mobile Mortgage Manager to

visit at a time that suits you. Go to anz.co.nz/mmm

THE HOME BUYING PROCESS

SETTLING

BRINGING IT

FINDING

THE ONE

HOUSE HUNTING

PLANNING

KNOW YOUR BUYING

POWER HOME

• Conrm your home loan and

repayment structure

• Complete pre-settlement tasks:

– If applicable, submit your KiwiSaver

rst home withdrawal application

– Conrm your insurances are

in place

– Carry out your pre-settlement

inspection

– Set up your settlement payment.

• Understand what to look for

• Do your homework on potential properties

• Get an ANZ Property Insights Report

• Engage a solicitor

• Complete required inspections and reports

• Understand dierent types of oers

• Find out how the house will be sold

• Follow the steps in our journey maps.

Settlement day –

pick up the keys and move in!

• Meet with your ANZ Home Loan Coach

• Understand the cost of buying and owning a home

• Put together your support team

• Work through your deposit options.

For example, if you’re a rst home buyer:

– If applicable, check your KiwiSaver rst home withdrawal

eligibility

– Request your KiwiSaver rst home withdrawal eligibility

letter from your KiwiSaver provider.

• Remember to discuss your insurance needs.

Apply for full loan approval

2 3

2 31

Get your home loan pre-approved

Buying costs – one o Owning costs – ongoing

• Solicitor fees

• LIM reports

• Property les

• Building inspections

• Moving costs

• Utility setup and

reconnecting services.

• Home loan repayments

• Council rates

• Insurance – home and contents

• Utilities and maintenance

• Body corporate fees

(if buying a unit title).

It’s important to factor in all of the costs

of buying and owning a home. Your

Coach can help you understand the costs

and set your budget.

You can also nd helpful budgeting tools

at sorted.org.nz and on our ANZ

Financial Wellbeing hub at anz.co.nz/

nancialwellbeing.

4 5

PLANNING

KNOW YOUR BUYING

POWER

The rst stage of buying a home involves

reviewing your nances to understand what

you can aord to spend.

MEET WITH AN ANZ HOME LOAN COACH

Your coach will take you through your loan

options and help with your plan of getting

to where you want to be. They’ll give you an

approximate idea of what you could borrow,

work through your deposit options, and

what your repayments might look like.

You can also nd a range of tools and

calculators to help you understand

what you may be able to aord at

anz.co.nz, including how much you

could borrow and how much your

repayments may be.

Your Coach can help you assess your home and contents

insurance needs and tailor a plan to t your needs and budget.

THE COSTS OF BUYING AND OWNING A HOME

6 7

If you’re a rst home buyer and a member of an ANZ-managed

KiwiSaver scheme, your Coach can help you understand your

eligibility and how much you could withdraw for your rst home.

PUTTING TOGETHER YOUR SUPPORT TEAM

• A solicitor – There are a number of legal

matters associated with purchasing a

home, so it’s important to involve your

solicitor before you make an oer or bid at

an auction. If you need to nd one check

out propertylawyers.org.nz. Legal fees

vary, so ask around and get an estimate.

• Building inspector – A building inspector

can tell you about the condition of a

property, which might help you decide

whether it’s the one for you. You can nd

a list of building inspectors in your area at

boinz.org.nz.

• Family and friends – Family and friends

can help you throughout your home

buying journey, whether that be giving

their honest feedback on potential

properties, supporting you at an auction

or celebrating with you once you’ve

purchased your new home.

Aside from your ANZ Home Loan Coach you will need:

USING YOUR KIWISAVER SAVINGS

If you’re buying your rst home and you meet eligibility criteria, you may be able to use

your KiwiSaver savings to get you there sooner.

FIRST HOME WITHDRAWAL

Your KiwiSaver savings can be used either to buy your rst home or buy land to build

your rst home on (but if you’ve already bought land you won’t be able to use your

KiwiSaver savings).

You need to be a member of a

KiwiSaver scheme or complying

superannuation fund for at least

three years to be eligible to make a

rst home withdrawal.

Contact your solicitor to see if

you’re eligible to make a rst home

withdrawal.

You need to intend to live in the

property as your principal place of

residence to be eligible to make a

rst home withdrawal.

The property must be in

New Zealand to be eligible to

make a rst home withdrawal.

You can only make one rst

home withdrawal, regardless of

any Kāinga Ora determination that

you’re in the same position as a rst

home buyer.

Are you eligible?

Have you been a member of a

KiwiSaver scheme or a complying

superannuation fund for

at least three years?

Will this be your rst time

owning a home/property or land

in New Zealand or overseas?

Do you intend to live in the

property you’re buying?

Is the property you’re buying in

New Zealand?

Great! Sounds like you

may be eligible.

Is this the rst time you’ll be

making a KiwiSaver rst home

withdrawal?

What size deposit will you need?

Generally, you’ll need a 20% deposit for

an ANZ Home Loan, but depending on

your situation and the type of home

you’re buying, this may dier – so talk to

your Coach today.

You can also work out how much you

could borrow by using our home loan

calculator at anz.co.nz/homecalculator.

Getting the deposit together for a new

home can be challenging. If your savings

and/or existing property equity are not

enough, there are other options available.

You may be able to get help from:

• KiwiSaver (if you’re eligible for a rst

home withdrawal)

• Family (through gifting, loans and

guarantees).

DEPOSIT OPTIONS

If you’re looking at withdrawing your KiwiSaver savings, it’s a

good time to review your fund choice. If your KiwiSaver account is

with ANZ Investments you can use our Fund Chooser Tool to see

ifyou’re in the right fund at anz.co.nz/choose-fund.

8 9

How much can you withdraw?

If you’re eligible, you can apply to

withdraw the total amount in your

KiwiSaver account, except for $1,000 and

any amount transferred from an Australian

complying superannuation scheme.

If you lived overseas since joining

KiwiSaver and didn’t have permanent

residence in New Zealand over that time,

you won’t be able to withdraw any of

the Government contributions received

during that period.

What do you need to do?

When you apply for your home loan

pre-approval, you generally need to

provide a KiwiSaver rst home withdrawal

eligibility letter. Thisletter includes

conrmation of your eligibility to make

a rst home withdrawal, as well as your

estimated withdrawalamount.

Your KiwiSaver scheme provider can

give you an eligibility letter and a rst

home withdrawal application form.

Ifyour KiwiSaver account is with ANZ

Investments, you can request these at

anz.co.nz/fhwrequest or call 0800 736 034.

Once you’ve found the home or land

you want to buy, it’s important to apply

for your rst home withdrawal early to

ensure your savings are available when

needed. Ifyou’re eligible, you may be able

to choose to put your KiwiSaver savings

towards the deposit while your Sale and

Purchase Agreement is still conditional

(generally 10% of the purchase price).

Or alternatively, once your oer goes

unconditional, you can put your

KiwiSaver savings towards the purchase

price at settlement. If settlement doesn’t

go ahead, this money must be returned

to your KiwiSaver account.

You’ll need to:

• Talk to your New Zealand solicitor –

they can help you through the process

• Take the application form to your

solicitor so they can help you

complete it and gather all the

requireddocuments

• Check the processing time for

KiwiSaverrst home withdrawals with

your KiwiSaver scheme provider – if

this is ANZInvestments, submit your

application atleast 15 business days

(10 business days if you haven’t lived

overseas) before payment is due.

Your KiwiSaver

balance

$1,000

Any Australian

Super you have

transferred

Your rst home

withdrawal

amount

– – =

There are three ways your family members may be able to help you get into your home

– gifting, loans and guarantees.

Gifting

This is when a family member gives you

some of the money for your deposit.

Ifsomeone is giving you money for your

deposit, we’ll need conrmation that

you won’t need to repay that money.

Bothyou and the family member(s)

concerned should get independent legal

advice before taking up this option.

Loan from family

With this option, we will require a Deed

of Acknowledgment conrming that

the loan will not have to be repaid until

the property is sold. Your family member

should talk to their solicitor about getting

this sorted.

Guarantees

In some cases, we may be able to take

a mortgage over a home owned by

someone else, for example your parents,

as extra security for your loan. Where this

happens, we’ll need a guarantee from the

owners of that home. Under a guarantee,

someone agrees that they will be

responsible for some or your entire loan

ifyou’re not able to pay it for any reason.

There are a number of conditions that

both you and the family member(s)

providing the guarantee will need to

meet, and you’ll both need to get legal

advice before taking up this option.

GETTING HELP FROM FAMILY

Talk to your ANZ Home Loan Coach or visit

anz.co.nz/personal/insurance to nd out more.

ASSESSING YOUR INSURANCE NEEDS

Once you’ve found a new home you’ll

need to insure it before you can draw

down your home loan, so it’s a good

idea to think about this early. Buying a

home can mean a new chapter in your life,

so you may also want to consider how

other insurances could help protect you

and your family’s lifestyle – now and in

thefuture.

Protecting your new home

House insurance protects you if your

house gets damaged or aected by

things like a re, ooding or natural

hazard. You must have adequate house

insurance in place before settlement day.

Your coach can help you understand

what you need to do and potential

insurance costs for the home type and

location you’re looking for.

Protecting your valuable possessions

Contents insurance covers the things

you own (other than your home), such

as furniture, clothes, appliances, etc. If

you don’t have contents insurance, it’s a

good idea to get this in place so you have

peace of mind should something happen

to your belongings. Your coach can help

you understand the options.

Protecting your lifestyle

What would happen if you suered from

an accident or illness that prevented you

from working, or you passed away? ANZ

Life & Living Insurance can help ensure

that you and your family are protected.

Your coach can put you in touch with

our trusted insurance partner Chubb

Life. They’ll help you put together the

right combination of insurance options

for your situation – andyour budget. For

example:

• Life Cover helps ensure your family will

be looked after nancially if the worst

should happen to you

• Critical Illness Cover helps provide

nancial security for you and your

family if you’re diagnosed with one of

12 serious conditions, including cancer,

stroke or a major heartattack

• Living Expense Cover provides help

with your living expenses if you can’t

work due to accident or illness.

GET YOUR HOME LOAN PRE-APPROVED

It gives you an indication of what

we’re willing to lend you, subject to

certain conditions.

There are a couple of things your coach

will need to assess when considering

a pre-approval:

1. Validate your identity; and

2. Assess your nancial position, income,

living expenses and, if you’re a rst home

buyer, your eligibility for a KiwiSaver rst

home withdrawal.

These can be provided through utility bills,

a passport or New Zealand driver’s licence,

and pay slips.

For non-ANZ accounts, we’ll also need you

to provide your last three months of bank

statements.

A pre-approval makes up two of the three

parts of a full loan application; your identity

and your nancial position. All that remains

is to nd the right property – and that’s

what the next section is about.

Your nances

Who you are

The property

A pre-approved home loan allows you to house hunt with

condence, giving you an idea of your potential buying

power and your approximate price range.

To start the pre-approval process, simply

contact your ANZ Home Loan Coach or

start the application process online at

anz.co.nz/homeloans.

Your pre-approval is valid for up to three months. If you’re

househunting for longer, contact your Coach who can

reassessyour nancial position.

10 11

12 13

FINDING

THE ONE

HOUSE HUNTING

Once you’ve got your deposit and

pre-approval sorted, you can start house

hunting with condence.

14 15

THE RIGHT PROPERTY FOR YOU

PROPERTY TYPES

Dierent property and land ownership

types come with dierent considerations.

Existing homes are generally less

complicated in terms of the purchase

process and your loan.

When you buy an apartment or a townhouse

you may become a shared owner of any

common areas of the property (i.e. a

member of the body corporate).

Before making an oer, you may wish to

understand the nancial position of the

body corporate and your responsibilities

asa member. The vendor can provide this

information.

Existing houses Apartments and terraced houses

There are a number of land ownership

types in New Zealand. The more

commonly known types are: Freehold,

Leasehold, Cross lease and Unit titles.

It’s important to talk to your solicitor and

get their advice about these dierent

types and what it will mean for you while

you search for your rst home and before

making an oer.

See settled.govt.nz for more details about

the types of land ownership.

TYPE OF LAND OWNERSHIP

Building a new home or buying a new

home o the plans can be a great way

to get the home you’ve always wanted.

The process for building or buying o the

plans comes with extra considerations.

So we’ve created a separate Building and

Renovating Handbook to help you through

the journey. Download the handbook at

anz.co.nz/buildingandrenovating.

Building or buying o the plans

If you don’t already have a will, talk to your solicitor

aboutputting one in place.

Purchasing by auction

A bid at auction is an unconditional oer,

so be sure to talk to your solicitor rst. They

will advise you of all the due diligence you

need to complete before the auction day.

Purchasing by oer and negotiation

ortender

Your solicitor will review the Title

information, LIM report and advise

you if you need to consider adding

any conditions to your oer. Typical

conditions include:

• subject to conrming nance

(obtaining full loan approval –

more on page 26)

• obtaining a LIM (Land Information

Memorandum) report (if you haven’t

already)

• being satised with the results of a

builder’s inspection.

KiwiSaver rst home withdrawal

If you’re using your KiwiSaver savings,

you’ll give your rst home withdrawal

forms to your solicitor, who will nalise

them and send them to your KiwiSaver

scheme provider. Once your withdrawal

has been approved, your provider will

send your withdrawal amount to your

solicitor’s bank account.

Building a new home or buying o

the plans

These types of contracts can be

more complex, so it’s important to

involve your solicitor from early on.

Always have your solicitor review any

contracts before signing them. Our

Building and Renovating Handbook

has more information about these

options. Download a copy at

anz.co.nz/buildingandrenovating or

request one at an ANZ branch.

Finalising the sale

If you are successful for any purchase

method your solicitor will be responsible

for transferring the property to you

(conveyancing) and completing the

transactions necessary for settlement

(you will be able to pick up the keys

following settlement).

ENGAGE A SOLICITOR

Once you’ve found a potential property, here’s an overview

of how your solicitor can help.

1716

DOING YOUR HOMEWORK ON

POTENTIAL PROPERTIES

Buying a home is a big commitment, so it pays to do thorough

research before you make an oer.

It’s a good idea to have a list of your ideals to rate a property against. Some things you

may like to consider:

• Does it get good sunlight (it pays to visit at dierent times of the day)?

• What is the neighbourhood like (including neighbouring houses)?

• Is it close to facilities like shops or transport?

• Does it have insulation? How is it heated?

• What is the general condition of the building, roof, and outside areas? Are there

anypotential issues that may need to be addressed?

• Does the property have unconsented works on it?

• Is the property insurable?

• If you’re not planning to live in the property, consider tax advice for the

bright-line test.

For more details about researching a property, visit settled.govt.nz.

An ANZ Property Insights Report gives you an estimate of a

property’spotential market value, plus recent comparable

property sales in the area – helping you decide how much

you’re willing to pay for a particular home. The report, produced by

Valocity, is worth $49.95 and is free when you have a conditional

pre-approval for an ANZ Home Loan.

GET AN ANZ PROPERTY INSIGHTS REPORT

AND KNOW A HOME’S POTENTIAL WORTH

Before you make an oer on a property, it’s important to factor

in the cost of house insurance. Certain regions may not only

have higher premiums, but there may be some restrictions on

obtaininginsurance. Your coach can help you with this.

Experience the home buying process

You can register for a free ANZ Property Unlocked webinar to get

rst-hand insights from experts including solicitors, real estate

agents and ANZ Home Loan Coaches.

To nd a webinar, visit anz.co.nz/propertyunlocked.

UNDERSTANDING TYPES OF OFFERS

There are two options when making an oer on a property;

conditional and unconditional. You should always have your

solicitor check any Sale and Purchase Agreements before

youmake an oer.

CONDITIONAL OFFER

A conditional oer is one where you

can specify conditions that must be

met before you agree for the Sale and

Purchase Agreement to be declared

unconditional. Conditions could include

making your oer subject to obtaining

a satisfactory building inspector’s report,

conrming nance (obtaining full loan

approval – more on page 26) or obtaining

a LIM report. Conditions always have

a timeframeattached and must be

completed by the specied date.

UNCONDITIONAL OFFER

An unconditional oer is one where

there are noconditions attached to

your oer. Youshouldcarry out all due

diligence (e.g.LIM reports, inspections,

conrming full loan approval) and ensure

your solicitor has reviewed the Sale and

Purchase Agreement prior to making an

unconditional oer, as you will be legally

bound to complete the purchase if your

oer isaccepted.

FIND OUT HOW THE HOUSE WILL BE SOLD

There are four main ways to buy a house in New Zealand; and each has pros and cons.

Check out our journey maps on the following pages for more information.

Remember that making an oer may lead to a legally binding contract if your oer is

accepted. Buying a house is an exciting time, but it’s important that your solicitor checks

your Sale and Purchase Agreement before you sign it.

18 19

Building inspections

A registered building inspector will

inspect the house and check whether it

is structurally sound, the condition of the

wiring and if there are any water tightness

issues. The cost of a builder’s inspection

depends on the level of detail you require

and generally range from $400 to $1,200*

depending on the house, region and the

quality of the inspector.

Check the LIM report (Land

Information Memorandum)

A LIM is a report issued by the local

city or district council which provides

a summary of all the information the

council has on le in regards to roads,

ooding or any contamination of the

land, rates and resource planning

consents. LIM reports are available

through your local council. You can

request it yourself or your solicitor can

request a copy. Depending on the type

of sale, the agent may provide you

with a copy of the LIM report and the

Record of Title (particularly if you’re

buying at auction). Check with your

solicitor regarding the date and contents.

The cost of a LIM report can vary from

around $350 to $475* and tend to be

more expensive in largercities.

Consider ordering a property le

A property le provides any

correspondence with the council

regarding the property and helpful plans.

A property le does not replace a LIM

report and your solicitor will advise you

whether one is required.

Property le costs range from $30 to

$100* depending on the council.

COMPLETE REQUIRED

INSPECTIONS AND REPORTS

There are a range of inspections and reports available for a fee

to help you research a property you’re interested in.

The cost of inspections and reports can start to add up.

So be sure it’s a property you are really interested in

before requesting these.

*Please note that costs quoted are estimates only and can vary depending on region and are subject to change.

Check your bank transfer

limit to ensure you can

pay your deposit.

Call 0800 269 296.

BEFORE

YOU MAKE

AN OFFER

Do your homework

on potential

properties.

Apply for your

home loan

pre-approval.

Get a free Property

Insights Report.

IF YOUR

OFFER IS

ACCEPTED

Have your solicitor

review and prepare

all the documents

required.

If you set conditions

as part of your oer,

arrange for them to

be met.

If the property is being

sold by tender you

may not get the

chance to negotiate.

Be ready with your deposit

once your oer has gone

unconditional (generally 10%

of the purchase price and paid

by bank transfer).

OFFER AND NEGOTIATION

If you want to make an oer, the real estate agent or your solicitor

will help you ll in a Sale and Purchase Agreement, which contains

your oer and any conditions. The vendor (seller) can accept your

oer, reject it or make a counter-oer. The real estate agent will act as

the go-between until both you and the vendor reach an agreement.

Provide proof of house

insurance to your

coach (they can help

with this).

MAKING

AN OFFER

Apply for full loan approval

(you can do this later if you

make your oer conditional

on nance) – see page 26.

Carry out all due

diligence and

inspections, including

insurability, (unless

you’re including them

as a condition).

Decide on a price

and conditions (if

any) for your oer.

2) Submit your applications

at least 15 business days

before payment is due if your

KiwiSaver account is with ANZ

Investments*.

1) Work with your solicitor

to complete and submit

your KiwiSaver rst home

withdrawal application.

If you are using KiwiSaver

savings towards your

deposit or the purchase

price on settlement day

you’ll need to:

* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days.

TENDER

Anyone who is interested in the property submits a written oer

(tender) by a certain date. Typically, all the tenders are opened at once

and the vendor decides which (if any) they will accept. They may also

choose to negotiate with any of the tenderers, however you might not

always get this chance so consider this when making your oer.

If you are purchasing by

oer and negotiation you

may have the option to

negotiate with the vendor

if they counter your oer.

Have your solicitor review

the Sale and Purchase

Agreement and share

it with your ANZ Home

Loan Coach.

AUCTION

An auction is where you bid against other people until only one

bidder is successful. All interested buyers turn up on auction day and

bid. The vendor (seller) will have a reserve price, and once this price is

reached, the property is on the market and will be sold to the highest

bidder. If it doesn’t reach the reserve price, the vendor may choose to

If successful – sign

the Sale and Purchase

Agreement and send it to

your coach and solicitor.

AHEAD

OF THE

AUCTION

Do your homework

on potential

properties.

Apply for your

home loan

pre-approval.

If the reserve price is not met,

the vendor may choose to

negotiate with the highest

unsuccessful bidder.

1) Work with your solicitor

to complete and submit

your KiwiSaver rst home

withdrawal application.

If you are using KiwiSaver

savings towards your

purchase price on settlement

day you’ll need to:

2) Submit your applications

at least 15 business days

before payment is due if

your KiwiSaver account is

with ANZ Investments*.

Provide proof of house

insurance to your

coach (they can help

with this).

Start bidding

– know your

price limits.

Be ready with your

deposit (generally

10% of the purchase

price and paid by

bank transfer).

YOU CAN’T USE YOUR KIWISAVER SAVINGS TOWARDS THE

DEPOSIT IF YOU’RE BUYING AT AN AUCTION. INSTEAD, IF YOU ARE

ELIGIBLE FOR A WITHDRAWAL, YOUR KIWISAVER SAVINGS WILL

BE PAID TOWARDS THE PURCHASE PRICE ON SETTLEMENT DAY.

Check your bank transfer

limit to ensure you can

pay your deposit.

Call 0800 269 296.

Apply for full

loan approval –

see page 26.

AUCTION

DAY

Get a free Property

Insights Report.

Carry out all due

diligence and

inspections, including

insurability.

Have your solicitor review

the Sale and Purchase

Agreement and share

it with your ANZ Home

Loan Coach.

negotiate with the highest unsuccessful bidder. Ifyou buy a home at

auction, the sale is unconditional – so you need to obtain legal advice

and do your due diligence (e.g. inspections, valuations) before you

bid, have nance approved ahead of the auction and be ready with

your deposit on the day (generally 10% of the purchase price).

* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days.

24 25

PLANNING

BUYING A HOME WITH KIWIBUILD

KiwiBuild is a government-led programme to assist eligible rst

home buyers with an opportunity to buy their rst home.

KiwiBuild will keep

you updated on

available homes.

at kiwibuild.govt.nz.

Talk to your coach to

conrm full loan approval

for the property.

Have your solicitor

complete all documents

required to nalise the sale

with the KiwiBuild partner.

IF YOU

SECURE

A PROPERTY

If you are using KiwiSaver

savings towards the deposit

or the purchase price on

settlement day you will

need to:

Be ready with your deposit

(usually the deposit is 10%

of the purchase price, paid

by bank transfer).

Your ANZ Home Loan pre-approval is valid for up to 90 days.

If needed, provide proof

of house insurance to

your coach (they can help

with this).

Conrm with your ANZ Home

Loan Coach that the KiwiBuild

properties you are interested

in meet our lending criteria.

Submit your KiwiBuild eligibility

application. (Note: you don’t

need to wait for conrmation you

qualify before expressing interest

in buying).

Apply for your home

loan pre-approval.

Carry out all due diligence on

the properties that you are

interested in (see pages 16-19).

Contact the KiwiBuild

developer or real estate

agent who will guide you

through the sale process.

Have your solicitor

review the Sale and

Purchase Agreement and

share it with your coach.

1) Work with your solicitor

to complete and submit

your KiwiSaver rst home

withdrawal application.

2) If your KiwiSaver account is managed by ANZ Investments,

then submit your application to ANZ at least 15 business days

before your payment is due*.

* If you haven’t lived overseas since you joined KiwiSaver, your processing time will be up to 10 business days.

Available KiwiBuild homes are sold by direct sale or ballot to

individuals that meet eligibility criteria.

Visit kiwibuild.govt.nz for more information and to register.

If you’re paying by bank transfer, make sure your bank transfer limit

is high enough by checking with your coach or calling 0800 269 296.

After getting legal advice make sure you sign and return all

the contract papers promptly. Feel free to run any questions

past your coach.

Having already validated your identity and

nancial position for your pre-approval,

the property is the nal component of

your loan application.

Your ANZ Home Loan Coach will help

you through the process and provide you

with a letter of oer if your application is

conrmed. Your letter of oer is key to the

sale going ahead.

Note that in some cases, we may require a

property valuation before we can conrm

full approval. Your Coach will discuss this

with you and help you nd a valuer if

required.

BRIDGING FINANCE

‘Bridging’ or ‘tideover’ loans are a short

term option for buying the next home

before the current home is sold or settles.

Bridging nance will mean you’ll have two

loans until the sale of your existing property.

So, there are several factors you may

want to consider when deciding whether

bridging nance is the right option:

• Can you aord it? Will you be able to

meet the repayments on your existing

home loan and your new bridging loan?

• How long will you need the new

bridging loan for?

• How certain are you that the sale

on your current home will happen

as expected?

Talk to your ANZ Home Loan Coach

about your options when buying and

selling a house, and if bridging nance is

right for you.

APPLY FOR FULL LOAN APPROVAL

Before your oer can be unconditional, you will need to apply

for full loan approval for your chosen property.

Your nances

Who you are

The property

CHOOSING THE RIGHT HOME LOAN FOR YOU

There is more to consider than just the interest rate. The way you structure your home loan

may help you pay less interest and could take years o your home loan. It’s important to

tailor your home loan to your circumstances, as one size doesn’t t all. An ANZ Home Loan

Coach can help you choose a loan structure to suit your nancial situation.

ANZ Home Loan

with a xed rate

ANZ Home Loan

with a oating rate

ANZ Flexible

Home Loan

Know exactly how much

your home loan repayments

will be by xing your rate for

a set period.

Allows you to make extra

repayments to pay o your

home loan sooner.

Is designed for customers

who are disciplined with

their money. When managed

carefully, this account may

enable them to pay less

interest and pay o their

loan faster.

The interest rate is xed for a

set period. During that period

your repayment amount

stays the same.

When the xed rate period

ends, you can choose to x

it at another rate, or let your

loan roll onto the oating rate.

Fixed home loans generally

have lower interest rates

than oating or exible

home loans, but they oer

less exibility to make extra

repayments.

The interest rate on a oating

home loan can move up or

down in line with market

changes – which means

your repayment amount

can change.

The interest rate is generally

higher than xed home

loan rates but you have

the exibility to make extra

repayments whenever you

like – a minimum repayment

amount may apply.

This home loan is a revolving

credit facility on your ANZ

transactional account, a bit

like an overdraft.

You can pay money into

it whenever you like and

redraw it if you need to.

You’re charged interest on

the outstanding balance, but

there are no set repayments.

It often has the highest

interest rate and a monthly

fee, but it oers the most

exibility.

28 29

SETTLING

BRINGING IT

HOME

At the last stage of buying a home you’ll conrm

your home loan structure and house insurance, and

complete paperwork and other tasks required to

get you across the line on time.

Use our home loan repayments calculator to work out what your

repayments might be at anz.co.nz/repaycalculator.

Interest only repayments are

exactly as the name suggests –

youonly pay the interest with

each repayment, not paying o

the original loan itself. At the end

of this interest-only period, you’ll

revert to a principal and interest

loan and your repayments will be

higher. Choosing an interest-only

loan can increase the total interest

you will pay over the life of the loan.

INTEREST-ONLY LOAN

Table repayments are the most

common option. Your repayments

stay the same over the life of the loan

(assuming your interest rate stays

thesame).

Here’s how they work:

You generally pay more interest at the

start, so initially you’re not building up

much equity (the amount you own)

in your home. However the balance

changes over time and later on you

repay more principal than interest,

and your equity builds up faster.

PRINCIPAL + INTEREST LOAN

Interest

Year

Home loan

balance

1 2 4 3 5

Principal

Year

Home loan

balance

1 2 4 3 5

CONFIRM YOUR REPAYMENT STRUCTURE

Interest

If repayments are made outside of the agreed structure, this may involve certain fees and charges.

TALK TO YOUR ANZ HOME LOAN COACH OR VISIT

ANZ.CO.NZ/PAYITFASTER TO FIND OUT HOW YOU COULD

SET UP YOUR HOME LOAN TO PAY IT OFF FASTER.

EASY WAYS TO MANAGE YOUR HOME LOAN

A home loan is a big commitment – so once you’ve got one, it pays to review it from

time to time.

Managing your repayments

Once your home loan account is set up with ANZ, you need to make sure the money

is there for each loan repayment.

If you have a xed rate home loan, here are a few ways you can make extra repayments

without being charged an Early Repayment Recovery. If it’s the rst increase that year,

you can increase your regular repayments towards your home loan by up to $250 a

week. Plus, each year you can make an extra lump sum repayment that’s no more than

5% of the current loan amount.

Reducing your repayments

If you experience nancial pressure, talk to us early. We may have options to help reduce

your repayments for a while.

You can view your home loan balance and re-x a home loan

interest rate when it comes up for renewal in ANZ goMoney

and ANZ Internet Banking.

ANZ goMONEY AND

INTERNET BANKING

The ANZ goMoney app and ANZ Internet

Banking are easy ways to manage your

ANZ accounts – for example, you can set

up automatic payments to your home

loan servicing account. You can also

check your balance, make payments,

transfer funds, pay bills and much more

24hours a day, seven days a week.

INCREASING YOUR REPAYMENTS OR MAKING A LUMP SUM

Check in with your coach to ensure you have completed

all your pre-settlement conditions and everything is on

track for settlement.

It’s important to ensure the settlement funds have been

received by the vendor’s solicitor at the agreed time on

settlement day, to avoid possible penalties.

32 33

COMPLETE PRE-SETTLEMENT TASKS

While your solicitor handles the settlement of your loan,

there are a couple of things you need to think about

ahead of settlement day.

INSURANCE

You will need to arrange house insurance

prior to your settlement day. As we are

providing a mortgage for the home, ANZ

must be recorded on the policy as the

interested party and you will need to

provide proof of insurance to your solicitor

prior to settlement. If you haven’t already, it’s

also a good time to talk to us about other

insurance options to ensure you and your

family are protected – for example, ensuring

that if you can’t work through injury or

illness, your mortgage will still be paid.

KIWISAVER

If applicable, you’ll need to submit

your KiwiSaver rst home withdrawal

application.

If your KiwiSaver account is with ANZ

Investments we need all the required

documents at least 15 business days

before payment is due. If you haven’t

lived overseas since you joined KiwiSaver,

your processing time will be up to

10business days.

FINAL INSPECTIONS

Before settlement make sure you carry

out a nal inspection of the property,

which can be arranged through the real

estate agent. You may want to ensure

any inclusions in the Sale and Purchase

Agreement remain and there has been

no damage to the property since the Sale

and Purchase Agreement was signed by

you and the vendor. Inform your solicitor

of the outcome of the inspection.

For more on what to look for in your

nal inspection, visit settled.govt.nz.

REMAINING FUNDS

Ensure you have transferred any remaining

funds as per your solicitor’s instructions

prior to settlement if required. If you

are sending by bank transfer, call us on

0800 269 296 to check your transfer limit.

On settlement day, most of the work is

completed behind the scenes by your

solicitor. Here’s an overview of what will

happen, including if you’ve used your

KiwiSaver savings for settlement:

• Your KiwiSaver rst home withdrawal

is paid directly to your solicitor on or

before the settlement day.

• Your solicitor will notify the bank of

the amount required to settle the

purchase and will arrange for your loan

to be drawn down and the money

transferred to the vendor.

• Your solicitor will also check that the

rates have been paid by the vendor

and are up-to-date.

• Once they receive conrmation that

the vendor has received the money,

your solicitor will register the property

in your name and arrange for you to

receive the keys.

Once settlement has taken place, your

solicitor or real estate agent will notify

you, and you can then get the keys.

Congratulations, welcome to your

new home.

SETTLING ON YOUR NEW HOME

–

PICK UP THE KEYS AND MOVE IN!

SETTLEMENT DAY

Settlement day is a big milestone. It’s when the purchase price (less

any deposit paid) is paid to the vendor and the title transfers to you.

It’s probably one of the most exciting parts of the process.

We’ve got ways to help make your new home warmer, drier

and more energy ecient. Visit anz.co.nz/healthyhomes to

nd out more.

WE’RE HERE FOR THE LONG TERM

As you put your feet up and settle in to your new home, let us

know how you’re going. The journey doesn’t end at settlement,

and your ANZ Home Loan Coach may be able to tailor your

loan to meet your changing needs or talk you through ways to

pay o your home loan faster. We also have a helpful video on

anz.co.nz/payitfaster to step you through it.

When the day comes that you want to renovate, buy a bigger

house, to downsize, invest in another property or restructure

your home loan, your coach will be there, ready to help you

reach that next milestone.

For articles, guides and and tools on how to make the most of

your money, visit anz.co.nz/nancialwellbeing.

Buying and selling

settled.govt.nz

You’ll nd comprehensive,

independent information here to

guide Kiwis through all aspects

of home buying and selling.

Brought to you by the Real Estate

Authority, the government

agency that regulates the

NewZealand real estate industry.

Get your plans sorted

sorted.org.nz

You’ll nd free and independent

tools and resources to help get

your nances sorted.

Find a solicitor

propertylawyers.org.nz

Search for a solicitor and pick up

tips on how to nd the right one

for you.

Find your local council

lgnz.co.nz

You’ll nd contact details for all

local councils listed here – you’ll

need to get hold of yours if you’re

after a LIM report from them.

Find a building inspector

boinz.org.nz

Search for a building inspector

inyour area.

General information

cab.org.nz

On the Citizens Advice Bureau

website you may nd answers

for any general housing and

land enquiries, like how body

corporates work, or whether

you’re eligible for Energywise

funding to help with insulation.

KiwiBuild

kiwibuild.govt.nz

Is a government programme to

enable more aortable home

ownership opportunities for

New Zealanders.

HELPFUL CONTACTS

Buying a home is the biggest purchase you will ever make,

so here are some useful sites to help you on your home

buying journey.

HOME BUYING JOURNEY — CHECKLIST

1. Planning – know your buying power

Meet with your ANZ Home Loan Coach

Outline your budget

Work through your deposit options

Check your KiwiSaver rst home

withdrawal eligibility

If applicable, request your KiwiSaver

rst home withdrawal eligibility letter

Assess your insurance needs

Get your home loan pre-approved

2. House hunting

Understand what to look for

Location, size, type of home

Understand the types of land ownership

Do your homework on potential

properties

Get an ANZ Property Insights Report

Engage a solicitor

Complete required inspections and

reports

• Building inspection

• Check the LIM report

• Consider ordering a property le

Understand the types of oers

Find out how the house will be sold

Understand the pros and cons of

eachmethod

Send your Sale and Purchase

Agreement to your coach and solicitor

Apply for full loan approval

Make an oer or bid at auction

• By oer and negotiation or tender:

agree on your price and conditions

• Bidding at auction: remember if

you bid at auction, your oer is

unconditional, so you need to

complete all your due diligence prior

to the auction

Meet your conditions if your oer

is accepted

• Full your conditions by completing

a builder’s inspection, valuation or

obtain the LIM report (depending

onyourconditions)

Contact your coach to complete

thehome loan process

Contact your solicitor so they can start

preparing the documents

Using your KiwiSaver savings?

• Work with your solicitor to submit

your KiwiSaver rst home withdrawal

application along with all required

documents

• Send the required documents to

your KiwiSaver scheme provider

at least 15 business days before

payment isdue*

3. Settling – bringing it home

Conrm your home loan and

repaymentstructure

Complete pre-settlement tasks

• Complete your pre-settlement

inspection

• Conrm your insurances are in place

• Pay the remainder of the purchase

price to the required account

Settlement day – pick up the keys

andmove in.

* If your KiwiSaver account is with ANZ Investments, and you haven’t lived overseas since you joined KiwiSaver,

the processing time will be up to 10 business days.

3938

Auction

The vendor sets a reserve price, and once

this price is reached, the property will be sold

to the highest bidder. Sales at auction are

unconditional – it’s important to obtain legal

advice, get full loan approval and do your due

diligence before bidding.

Body Corporate

A group made up of owners in a block of ats

or apartments, who maintain and repair the

building and its shared spaces.

Certicate of Title

A document containing the legal description

of a property, who owns it and who may have

registered a mortgage against the title.

Chattels

Items included in the sale of the property and

listed in the Sale and Purchase Agreement.

Chattels can include items such as curtains,

carpets and light ttings.

Code Compliance Certicate

A formal statement issued under the Building

Act 2004, that the building work carried out

under a building consent complies with

that building consent and the New Zealand

Building Code.

Conditional oer

An oer where you specify conditions that

must be met by a certain date before the

Sale and Purchase Agreement is declared

unconditional. Common conditions include

obtaining a satisfactory building inspector’s

report, conrming nance or obtaining a

LIM report.

Conveyancing

Term used to describe the legal work required

for completion of a property transaction –

usually a sale or a purchase.

Full loan approval

Full loan approval means we’ve conrmed

the amount we can lend you on the specic

property you intend to buy.

If you want to bid at an auction, or you want

to make an oer with no nance clause, you’ll

need to get full loan approval rst.

Note, a pre-approved home loan is not full

loan approval as you still need our approval for

the specic property.

Land Information Memorandum

(LIM) report

Issued by the local council and provides a

summary of information they have on le

about roads, ooding or any contamination of

the land, rates and resource planning consents.

Oer and negotiation

You make an oer in writing and then

negotiate with the vendor until you agree on

a price and conditions. Your real estate agent

or your solicitor will help you ll in a Sale and

Purchase Agreement containing your oer and

any conditions. The vendor can accept your

oer, reject it or make a counter-oer. The real

estate agent will act as the go-between until

both you and the vendor reach an agreement.

Pre-approved home loan

Gives you an indication of what we will lend

to you, subject to certain conditions, so you

can go house-hunting with condence.

A pre-approved home loan is not a loan that

has been fully approved – you will still need

to get full loan approval by satisfying any

conditions that need to be met.

GLOSSARY

Private sales

Private sales usually follow the same

process as oer and negotiation – but the

negotiations are made directly with the

vendor instead of through a real estate agent,

and you’ll pay the deposit to your solicitor.

With this type of sale you’re more likely to

require a property valuation report before

nance can be approved.

It’s important that you consult your lawyer

before signing or committing to anything

in a private sale.

Loan to Value Ratio (LVR)

The amount you wish to borrow as a

percentage of the property’s market value.

LVR is calculated by dividing the amount of the

loan by the value of the property. For example,

if you have a deposit of $100,000 and the

property is worth $500,000 it means you need

to borrow $400,000 and the LVR will be 80%

($400,000/$500,000=80%).

Low Equity Premium (LEP)

A fee that is charged when you borrow more

than 80% of the value of the property that’s

available as security for any loans you have

with us. This is charged as a percentage of

your loan amount on a graduated scale – the

more you’re borrowing against the value of the

property, the higher the fee could be.

Mortgage

Sometimes used to describe a home loan.

However, this is a legal document that is the

security a borrower gives a lender which is

registered against the title to the property

being purchased. The property cannot be

sold without the home loan being repaid

and the mortgage removed from the title

(discharge of mortgage).

Mortgagee

The lender who gives the loan to the borrower

and receives the security (mortgage) in the

property from the borrower.

Principal

The amount you have borrowed from the

bank, which is used to calculate your nal loan

amount (i.e. including the interest you will

need to pay).

Sale and Purchase Agreement

This is the written contract for sale and

purchase of the property between the vendor

(seller) and the purchaser (buyer) – usually

handled by a real estate agent and a solicitor.

The Agreement sets out the amount the

property will be sold for, any conditions

that must be satised before the sale is

unconditional and settlement date.

Settlement day

The date the purchaser’s lawyer pays the

vendor’s lawyer the purchase price and the

vendor’s lawyer transfers legal title to the

property to the purchaser. The purchaser

can get the keys on this date.

Sale by Tender

This is the process where prospective buyers

submit a written oer (tender) by a certain

date. The tenders are opened after that date

and the vendor decides which (if any) they

will accept. They may or may not choose to

negotiate with any of the tenderers.

Unconditional oer

An oer with no conditions attached.

You should carry out all due diligence (e.g.

LIM reports, inspections, conrming full

loan approval) and ensure your solicitor has

reviewed the Sale and Purchase Agreement

prior to making an unconditional oer, as

you will be legally bound to complete the

purchase if your oer is accepted. Your

ANZHome Loan Coach will be able to assist

you with conrming full loan approval.

Vendor

This is the person selling the property.

NOTES

ANZ Property Unlocked webinars

Get rst-hand insights from experts including solicitors, real estate

agents and ANZ Home Loan Coaches at a free ANZ Property

Unlocked webinar.

To register for a webinar, visit anz.co.nz/propertyunlocked.

0800 269 4663

Visit anz.co.nz/homeloans

Book an appointment with an ANZ Home Loan Coach

at any branch

Arrange for an ANZ Mobile Mortgage Manager to

visit at a time that suits you. Go to anz.co.nz/mmm

Lending criteria, terms, conditions, and fees apply. A copy of terms, conditions, fees and our Reserve Bank Disclosure

Statement are available at anz.co.nz or a request for a copy can be made at any ANZ branch. The contents of this

brochure are subject to change.

This brochure is for information purposes only. We recommend seeking nancial advice about your situation and

goals before getting a nancial product. To talk to one of our team at ANZ, please call 0800 269 4663, for more

information about ANZ’s nancial advice service or to view our nancial advice provider disclosure statement see

anz.co.nz/fapdisclosure

Our insurance solutions are underwritten and issued by third party insurers. No member of ANZ or its related

companies or any other person guarantees Chubb Life Insurance New Zealand Limited (Chubb Life), Vero Insurance

New Zealand Limited (Vero), or their subsidiaries or any of the products issued by them. ANZ may receive a

commission on any policy it arranges.

This brochure is current as at July 2024 and the details in it are subject to change.

TAKING THAT NEXT STEP

An ANZ Home Loan Coach will help you to apply for a home loan.

You’re in control, because how you apply is up to you:

ANZ Bank New Zealand Limited 07/24 20696 H240716

anz.co.nz