ASB has thrown a lifeline to all the would-be first-home buyers out there with $25,000 handy.
They're going to lend up to 95 percent of the purchase price for KiwiBuild homes.
"Our history shows we're committed to supporting Kiwis into their first home by empowering them to confidently take steps towards realising their dream," said acting executive general manager retail banking Claire McKinnon.
On top of that, the bank is offering $2500 cold, hard cash once their loan is approved.
"For example, it can be used towards the costs of purchasing their new KiwiBuild home, such as a property valuation or legal fees."
The cheapest one-bedroom KiwiBuild homes in Auckland will be $500,000, requiring at least a $25,000 deposit. Not even the Government's own bank - Kiwibank - is matching that. Earlier this month Kiwibank made headlines when it said it would lend 90 percent of the purchase price, and give buyers $2000 cash.
"The Government's efforts to restore the Kiwi dream of home ownership is an aspiration Kiwibank can support," said Kiwibank group marketing manager Mark Wilkshire.
Around 40,000 people have applied for a KiwiBuild home, and with only a few hundred expected in the first year it could be a long time before buyers get a chance to take advantage of the offers, if they're still available.
Presently banks can't have more than 15 percent of their residential mortgage lending go to owner-occupiers with less than a 20 percent deposit.
But lending to KiwiBuild buyers is exempt, as the Reserve Bank's restrictions don't apply to new builds.
ASB's deposit minimums
- $500,000 home - $25,000
- $600,000 two-bedroom home - $30,000
- $650,000 three-bedroom home - $32,500
Newshub.
