First-time home buyers are making the most of abundant listings and steady prices – they’re currently the single biggest buying cohort, doing more deals each month than movers or property investors [source]. But as first-timers, they don’t have the experience of seasoned buyers to draw on when navigating what may be the biggest investment they’ve made so far.
ANZ’s Indicative Approval Tool – a new kind of mortgage calculator – provides first-home buyers with another tool in the toolkit, giving a quick indication of how much they could borrow and whether they’re likely to get approved for a specific home they’d like to buy.
It takes five minutes to complete and works out a likely borrowing range based on your income, expenses and how much you’ve saved for a deposit.
“We want this tool to empower first-home buyers,” says Salvador Gloria, ANZ Mobile Mortgage Manager.
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“It can be overwhelming for people buying their first home. People may have had a bad experience and put home ownership in the ‘too hard’ basket. This tool can give you a bit of a boost that you're on the right track and ready to get the ball rolling.”
Whether you have found the property you want to buy, or you’re still looking, ANZ’s Indicative Approval Tool is fast, simple to use and you don't need to be an ANZ customer to use it.
Once you’ve got an indication on how much you could borrow and whether you're likely to get approved, you have the option to share your results with ANZ to kickstart the home application process or discuss your options with an ANZ Home Loan Coach.
A first home is now within reach for more Kiwi households, says Gloria. For most properties and loan types, many are now able to have a 10% deposit rather than 20%, and others are making it work without support from the ‘bank of mum and dad’.
“We’re helping change the narrative,” he says.
“There are all these memes about how young people can never get a home or get ahead. But I’m 30, and I see that for people in their 20s and 30s, we do want to own assets for ourselves – that’s a theme for younger generations.
“They’re saying, ‘I want that foundation so that I’ve set myself up when it comes to retirement.’ This tool is another way of ANZ telling New Zealanders that we’re here to help kickstart that journey.”
‘Owning a piece of the pie changes your life’
As a Mobile Mortgage Manager, Gloria works with a diverse range of people at all sorts of life stages – often travelling to clients’ homes to meet them at a time that suits them.
He says seeing first-time buyers achieve home ownership is his favourite part of the job.
These buyers often need extra help putting a deal together or getting a loan across the line as they navigate questions about how much they can borrow for a mortgage, how much of a deposit they need, and the application and approval process for the very first time.
Gloria feels lucky to be able to focus entirely on what’s best for his clients, even when a deal is trickier or more time-consuming.
Getting approval for a first home loan always feels special, partly because Gloria knows exactly how meaningful it can be. He arrived in Aotearoa from the Philippines as a 12-year-old, and his family moved between rentals five times in an eight-year period. It was a disruptive experience.
“You are at the mercy of the landlord and at the mercy of your employer, because there are only so many jobs hiring non-residents. You are paying for your visa and paying rent, so it’s hard to save up a deposit, too.”
Now a New Zealand citizen, Gloria and his wife bought their first home in Wigram, Christchurch two years ago, using a 10% deposit and without any family assistance. Their first child arrived around a year later.
“It’s a real comfort to know that our son doesn’t have to move again and again. It changes your life to know that you own a little piece of the pie, when you’ve worked so hard to get there. We’ve been very lucky.”
The couple bought when prices were at their highest – in contrast to the current buyers’ market – but Gloria understands that buying a house is a long-term decision.
“Was it a bad time to buy? It’s just one of those things – you can’t control what the market brings or where the interest rate lands. I think the best time to buy a house is when you’re ready. This tool can help get you started, along with our Home Loan Coaches, who can help with a plan to get you where you want to be.”
To use ANZ’s Indicative Approval Tool and contact ANZ about buying your first home, visit anzapply.anz.co.nz/home-loan-indicative-approval/introduction
ANZ’s Indicative Approval Tool provides an indicative result only. Responsible lending and other criteria apply to full applications. Terms, and fees apply to home loans.