Competition for borrowers getting into the Government KiwiBuild scheme has hotted up with one of our major partners ASB offering a 95% LVR mortgage.Technically this is nothing new as occasionally for 'Turn Key' house and land packages banks have been willing to get to 95% LVR for really strong borrowers.
Now the key thing to note is just because you have say $30k deposit, that doesn't automatically mean you can borrow $570k on a $600k house. Borrowers will still need to prove servicing, which on a low-deposit loan, the loan size is approximately 4 times your income (assuming no debts or kids). So on a $570k loan, you would need roughly $140k of annual income to be eligible. It's likely you will need to be 'squeaky clean' in all other aspects such as clean credit history, stable job history and tidy account conduct.
It's quite likely other banks will follow suit with this criteria and each bank will differ on how much they will lend you. They'll differ on how long the approval lasts for and also what they will charge as a low-equity fee. So it pays to get our expert help.