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Home Buyer Guide

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					I’m a Home
Buyer’s Guide.
Come in.
Shoes are fine.
I’m the
contents page
to help you find
your way around
this brochure.
1	 Your	helping	hand.
2	 Why	choose	ASB?
3	 Your	home	buying	journey.
   01 Starting out
   02 House hunting
   03 Money stuff
   04 Ready to buy
   05 Moving in
   06 Managing your home loan
I’m your
helping hand
while you
look for your
next house.
Buying a new home? Whether it’s your first or
your fifth time, buying a house is an exciting and
demanding time. The housing market is continually
changing, but to help make things easier for you,
I’m here to bring you the wealth of knowledge we’ve
gained from helping thousands of New Zealanders
into their homes.


This	guide	is	produced	by	ASB	Bank	Limited.	It	is	intended	to	provide	general	
information	only	and	should	not	be	relied	upon	to	give	specific	advice.	Expert	
advice	should	be	sought	prior	to	committing	to	the	purchase	of	a	house.	




                                                                                  1
I’m some
sound
reasons for
choosing
ASB.
If I might
say so
myself.
If you’re looking for a home loan you’ll want to look a bit
further than just a good rate. With a loan from ASB, you’ll
get the help, support and advice you need at every stage.

2
•	   Get started with our calculators	to	                       •	 And, you’ll get the right home loan
	    work	out	a	budget	and	look	at	how	                            for you.	Our	experienced	staff	are		
	    much	you	could	borrow.	We’ve	got	                          	 here	to	make	sure	your	home	loan		
	    great	options	for	those	who	don’t	                         	 fits	your	lifestyle	and	your	future		
	    have	20%	deposit	so	your	home	                             	 goals.	We’ll	give	you	options	that	will		
	    could	be	a	lot	closer	than	you	think.                      	 help	you	pay	off	your	home	loan	faster		
•	 Get a pre-approval certificate	so	you		                      	 or	stick	to	a	budget.
	 can	bid	and	buy	with	confidence.	         And	because	buying	a	home	can	be	
•	   A great rate	and	we’ll	hold	it	for		   stressful	enough,	once	you’ve	found	
	    60	days	for	free	from	when	your		      your	home	we’ll	automatically	get	your	
	    loan	is	approved	and	documented.	      documents	to	your	solicitor	within		
                                            24	hours	of	approval.	If	we	receive	your	
•	   Contributions to your lawyers
                                            solicitors	instructions	two	days	before	
     fees	to	help	cover	some	of	those		
                                            settlement,	we’ll	even	make	sure	your	
	    additional	costs.
                                            home	loan	is	advanced	by	8.00am	on	
•	   Apply for an ASB Visa or MasterCard	 settlement	day.
	    at	the	same	time	as	your	home	loan	
	    and	we’ll	waive	the	normal	account	
	    fee	for	12	months**	making	that	first	
	    year	a	bit	easier.




Loans	for	business	purposes	excluded.	**ASB’s	account	terms	and	conditions	apply.	Subject	to	ASB	Credit	Card	
lending	criteria	and	Credit	Card	Conditions	of	Use.	The	availability	of	any	insurance	cover	is	subject	to	your	application	
being	approved.	All	applications	are	subject	to	individual	consideration.	Special	conditions,	maximums,	exclusions	or	
premium	loadings	may	apply.




                                                                                                                         3
                                            01
I’m your home                        Starting
buying journey.                        out

Here are the                               02
steps you'll                      House
                                 hunting
follow to get
to your next                   Money
                                           03
home.                           stuff


                                      04
                            Ready
                            to buy


                            05
                Moving in



    Managing    06
      your
    home loan


4
                                                                01
I’m here to help
you do your
homework.
Preparation work is never       Getting	started	isn’t	too	painful	really.	
                                All	you	need	to	do	is:
much fun – ask anyone
                                •	 Start	thinking	about	the	money		
who’s ever had to sand down     	 you	have	coming	in	and	going	out.
their house. Still, it always   •	 Build	a	savings	history		
pays off. Do the prep work      	 (some	is	better	than	none	at	all).	
                                •	 Set	yourself	a	goal,	think	about	how		
now and you'll save time        	 much	you	will	need	to	save	and	how		
and hassle when it comes to     	 long	you	want	this	to	take.	
sorting your home loan.         •	 Wipe	out	as	many	debts	as	you	can,		
                                	 including	student	loans	(existing	debt		
                                	 reduces	the	amount	you	can	borrow).	
                                •	   If	you’ve	already	bought	a	house	and		
                                	    you	want	to	move,	any	equity	you		
                                	    have	in	your	current	home	can	be		
                                	    used	for	your	deposit.	Just	bear	in		
                                	    mind	you’ll	need	to	sell	your	home		
                                	    at	the	same	time	as	buying	a		
                                	    new	one	-	unless	you’re	buying	an		
                                	    investment	property	of	course.


                                     Check out asb.co.nz for more
                                     information on getting debt free
                                     faster with our debt consolidation
                                     loan.




                                                             Starting out
                                                              01
I'm an idea of
how much you
can borrow.
It’s important that you
                                   You’ll find heaps more handy
know exactly how much              advice, tips and calculators for
you can afford to spend on         working out budgets, repayments
                                   and what you can afford at
a home before you start
                                   asb.co.nz
actively searching through
the property pages.           And	when	it	comes	to	getting	your	
Knowing what you can          deposit	together,	here	are	a	few	options	
                              to	help	you	get	there:
afford will help you narrow
                              •	 Savings	are	a	great	way	to	get		
down where you can buy,       	 started.
the type of house and how     •	 KiwiSaver	scheme	provides		
much you’ll need to borrow.   	 opportunities	for	First	Home	and		
                              	 Second	Chance	buyers.
The	amount	you	can	borrow		   •	   Your	family	might	be	able	to	help		
depends	on	three	things:      	    out	through	gifting,	acting	as		
1.	 The	market	value	of		     	    guarantor	or	even	through	providing		
	 the	home	you	want.          	    a	loan.
2.	The	deposit	or	equity		    •	   There	is	also	buying	with	a	friend		
	 you	can	provide.	           	    which	is	a	great	option	for	those		
3.	The	regular	repayments		   	    wanting	to	buy	property	but	can’t		
	 you	can	afford.             	                                          	
                                   quite	afford	it	on	their	own,	or	maybe	
                              	    keen	to	buy	an	investment	property		
                              	    to	rent,	or	a	holiday	home.




Starting out
                                                                            02
I'm up for a little
house hunting.
Ready to join me?
Right. Time to start                          There	are	many	ways	to	look	for	a	
                                              house	and	to	make	your	search	easier:
looking. Before you do,
                                              Real Estate Agents.
you’ll need to figure out                     It’s	a	good	idea	to	establish	a	
where you want to live as                     relationship	with	a	few	real	estate	
well as the type of property                  agents.	Let	them	know	what	you’re	
                                              looking	for	as	they	often	see	listings	
you want to live in, and                      before	they	get	advertised.	
make sure you know what                       Newspapers.
you can actually afford.                      Real	estate	inserts	in	local	newspapers	
                                              and	Property	Press	magazines	are	a	
Now	is	a	really	good	time	to	get	a	loan	      great	place	to	start.	They	have	open	
pre-approval	certificate	so	you	start	        home	listings	so	you	can	plan	out	your	
your	search	in	the	right	place.	A	pre-        weekend	viewing.	
approval	will	also	help	you	bid	and	buy	
with	confidence,	as	you	know	exactly	         Internet.
how	much	you	can	borrow.	                     Most	of	the	major	real	estate	agents	
                                              have	websites	that	let	you	search	
Then	it’s	time	to	get	out	there.	You	
                                              according	to	area	and	price	range.	
could	easily	end	up	spending	the	rest	
of	your	life	doing	research.	But	sooner	
or	later	you've	got	to	put	all	that	theory	   	 We’ve put together some handy
into	practice	and	find	your	very	own	           tools to help you make the most
dream	home.	                                    informed decision you can. For
                                                everything from tips to different
                                                ways to search, how to get the
                                                most out of your real estate agent,
                                                to tricks for open homes and
                                                much more check out asb.co.nz



                                                                        House hunting
                                                      02
I’m five handy tips
to avoid insanity while
house hunting.

Months of dedicated house hunting can send you a bit
crazy if you let it. So here are a few hard and not so fast
rules to keep in mind during the process:
1.	 Don't	think	it's	the	end	of	the	world	if	you	miss		
	 out	on	a	place	you	like.	There'll	be	another	one.
                                     t
2.	 Stick	to	your	budget.	Don’t	even		 hink	about		
	 stretching	things	out	until	you	can	be	sure	you		
	 can	afford	the	repayments.
3.	 Be	patient.	This	is	a	huge	decision	and	as	much	as	you	
	 might	like	them	to,	things	won't	happen	overnight.	
4.	   When	you've	found	a	house	you're	interested	in,		
	     don't	be	rushed	or	pressured.	You	need	to	ensure	
	     you're	completely	comfortable	that	you've	checked	
	     everything	you	need	to.
5.	 Be	prepared	to	compromise.		
	 There	is	no	such	thing	as	the	perfect	home.




House hunting
                                              03
I'm the
all-important
financial stuff.

Choosing the right type of
home loan for you is really
a question of what you’re
most comfortable with.
There	are	lots	of	choices	on	offer:	
different	loan	types,	repayment	options,	
interest	rates	and	building	in	flexibility	
to	suit	your	changing	lifestyle.
For	example,	do	you	choose	fixed	rate	
or	floating?	Or	maybe	a	combination	
of	both,	so	you	can	make	it	easier	to	
pay	off	your	loan	faster	and	still	have	
the	security	of	knowing	your	regular	
repayment	amounts.
When	you	understand	all	the	options	
you’ll	know	exactly	which	one	you	
prefer,	and	we’re	here	to	help	you		
do	just	that.		

  You can also try out our
  handy online Compare Loans
  calculator at asb.co.nz




                                              Money stuff
I'm the Home Loan
structure available
to you.
Choose one to suit or try a combination.

Want the certainty of regular
repayments?
A Table Loan
could be best for you.
The	traditional	table	home	loan	is	the	most	
popular	option.	Your	monthly	or	fortnightly	
                                                   Installment ($)




repayments	are	of	the	same	amount	and	spread	
evenly	over	the	whole	term	of	your	loan,	                               Interest																						Principal
making	it	easier	for	you	to	budget	(subject	to	
interest	rate	changes).	And	because	principal	
repayments	are	lower	at	the	start	of	your	loan,	                     First payment                 Last payment
you	may	be	able	to	afford	to	borrow	more.



Can you afford to pay a little
bit more now?
A Reducing Loan
could be best for you.
As	the	name	implies,	this	type	of	loan	begins	
with	higher	installments	that	gradually	reduce	
                                                   Installment ($)




over	the	term	of	the	loan.	As	you	pay	off	the	                          Interest
principal	in	even	amounts,	the	interest	cost	
reduces	with	each	repayment.
                                                                        Principal
                                                                     First payment                 Last payment




Money stuff
                                                                                                             03
Want a loan for a shorter
term? Need more cash now?
An Interest Only Loan
could be best for you.
In	certain	circumstances,	usually	for	short-term	
loans,	for	example	buying	a	new	home	before	




                                                                                                                                Principal
                                                      Installment ($)
selling	your	existing	property	it	may	be	possible	
to	make	instalments	on	an	interest-only	basis	
with	the	full	principal	being	repaid	at	the	end	of	
the	pre-agreed	term,	or	when	the	security	is	sold.                          Interest
                                                                         First payment                          Last payment


Want a more flexible option?                                             Your limit
A Revolving Credit Loan                                                                      Funds	available	
could work for you.                                                                            for	redraw

A	revolving	credit	home	loan	combines		                                                                           Lo
                                                                                                                    an
your	cheque	and	home	loan	accounts	into	                                                                               ba
                                                      Loan balance ($)




                                                                                                                         lan
                                                                                        home
                                                                                        Renovate	


                                                                                                                            ce
a	single,	easy	to	manage	package.	Ideal	if	
                                                                                                           boat
                                                                                                           Purchase
you	need	an	ongoing	credit	limit	which	you	
can	access	at	any	time.	It	lets	you	make	
repayments	at	your	own	pace,	or	redraw	up		
to	your	credit	limit	without	needing	to	reapply.	                        Time
It’s	like	an	overdraft	with	no	set	regular	
principal	repayments.
                                                                                Funds	available	
                                                                                for	redraw
A	reducing	limit	revolving	credit	loan	has	
similar	features	to	a	standard	revolving	credit	                                                    Re
                                                                                                      du
                                                                                                        cin
loan	but	the	credit	limit	will	reduce	over	time.	                                                          g	l
                                                                                                              im
                                                                                                                it
You	still	have	the	flexibility	to	redraw	up	to		
                                                      Loan balance ($)




your	reducing	limit,	without	having	to	reapply.	
                                                                                        home
                                                                                        Renovate	




                                                                                                            Lo
Ideal	if	you	wish	to	repay	your	loan	faster	and	                                                              an
                                                                                                                      ba
keep	a	tighter	control	on	your	finances.                                                                                la
                                                                                                                          nc
                                                                                                                            e


                                                                         Time




                                                                                                           Money stuff
I'm here to
explain your
ASB home
loan options.
We can help you choose                        	    regular	repayments	to	pay	off	your		
                                              	    loan	faster.	It's	important	to	note		
the right home loan to suit                   	    that	with	a	fixed	term	loan	you	are		
you. It’s also a good idea                    	    restricted	to	paying	a	maximum		
                                              	    of	$1,000	per	month	or	$500	per		
to check in with us if your
                                              	    fortnight	on	top	of	your	normal		
needs change as we may                        	    repayments.	If	you	intend	to	pay		
be able to offer some great                   	    more	than	this,	it's	a	good	idea	to		
                                              	    have	a	percentage	of	your	loan		
solutions to make your home                   	    on	floating.
loan work better for you.                     •	   Choose	to	take	your	current	home		
You	may	already	know	that	you	can	            	    loan	with	you	even	when	you	move		
choose	between	fixed	and	floating	            	    or	buy	another	property.	With	a	fixed		
options,	but	you	might	want	to	think	         	    interest	rate	loan	you	may	be	
about	structuring	your	loan	with	a	           	    required	to	pay	an	early	repayment		
combination	of	both.	This	could	make	         	    adjustment	fee	(ERA).
it	easier	to	pay	off	your	loan	faster,	and	   •	 Have	a	table	or	reducing	loan.
give	you	the	security	of	knowing	your	        •	 Have	an	interest	only	loan	or	apply		
regular	repayment	amounts.                    	 a	period	of	interest	only	to	your	loan,		
                                              	 to	a	maximum	term	of	5	years.
We	offer	great	home	loan	products	and	
remember	you	can	split	your	loan		            •	 Top	up	your	loan	(subject	to	lending		
across	a	range	of	these	products.             	 criteria).
                                              •	 Choose	your	loan	term	–	up	to		
ASB home loans are also great                 	 30	years.
because you can:
                                              •	 Receive	regular	statements	and	view		
•	 Choose	how	often	you	want	to	pay	–		       	 loan	information	online.
	 fortnightly	or	monthly.	Increase	your		


Money stuff
                                                                                                            03
                                           Standard Home Loan                                Revolving Credit
 I'm a handy table                         Floating              Fixed                    Orbit            Orbit
 which explains all                        rate                  rate                                      FastTrack
                                           Often	referred	       Your	                    Works	like	a	    Works	like	Orbit		
 the bits & bobs                           to	as	a	variable	
                                           rate,	the	interest	
                                                                 repayments	are	
                                                                 spread	evenly	
                                                                                          transaction	
                                                                                          account	with	
                                                                                                           but	the	loan	limit		
                                                                                                           reduces	making		
 to do with ASB                            rate	applied	to	
                                           your	loan	will	
                                                                 over	the	fixed	
                                                                 term	of	your	
                                                                                          an	overdraft.	
                                                                                          There	are	no	
                                                                                                           sure	that	you	are	
                                                                                                           paying	off	your	
 home loans:                               vary	or	float	
                                           with	market	
                                                                 loan,	making	it	
                                                                 easy	
                                                                                          set	regular	
                                                                                          repayments.
                                                                                                           loan	over	the	
                                                                                                           term	you	have	
                                           conditions.           to	budget.                                selected.

 I	want	to	keep	my	loan	and		
                                                                                                x                x
 daily	transactions	separate.

 I	want	the	flexibility	to	redraw	up	to	
                                                    x                     x                                       
 my	limit	even	if	I’ve	paid	some	off.

 I	want	to	make	repayments		
                                                    x                     x                                       
 at	my	own	pace.

 I	want	to	know	that	my	loan	
 payments	won’t	change	so	I	know	                   x                                            x                x
 where	I	stand	each	month.

 I	want	the	flexibility	to	increase	
 or	make	lump	sum	repayments	                                            x                                       
 without	penalties.	

 You	will	hold	my	rate	once	my	loan	        The	rate	on	         Yes,	we	will	hold	it		   The	rate	on	     The	rate	on	
                                            settlement		         for	60	days.		           settlement		     settlement		
 is	approved	and	documented.                day	will	apply                                day	will	apply   day	will	apply


 I	want	to	have	my	income	paid	
 directly	into	my	loan	account	
                                                    x                     x                                       
 allowing	every	dollar	paid	into	the	
 account	to	save	me	interest.

 I	want	the	ability	to	use	my	credit	
 card	for	day	to	day	purchases	
 and	pay	it	off	with	my	loan.	You’ll	
 receive	up	to	55	days	interest	free	
 credit	on	your	purchases	and	earn	
 True	Rewards	dollars	at	the	same	                  x                     x                                       
 time.	Using	the	interest	free	days	
 on	your	credit	card	delays	taking	
 money	out	of	your	loan	account	
 and	keeps	the	outstanding	balance	
 lower,	again	saving	you	interest.

ASB's	terms	and	conditions	and	ASB's	current	disclosure	statement	are	available	free	of	charge	from	any	ASB	branch	or	
online	at	asb.co.nz.	Lending	criteria	apply.



                                                                                                           Money stuff
                                                                          03
I'm here to make
your home loan
work for you.
01.
Choose the term of your loan.
You	can	structure	your	home	loan	over	any	term	up	to	30	years.	This	means	you	
can	choose	to	save	on	interest	by	paying	your	loan	off	sooner	or	reduce	your	
repayment	instalments	by	spreading	your	loan	over	a	longer	term.	



02.
Choose the repayment frequency.
Nominate	whether	you	want	to	make	your	installments	on	a	monthly	or		
fortnightly	basis.
With	a	floating	rate	ASB	Home	Loan,	Orbit	or	Orbit	FastTrack	Home	Loan		
you	can	make	extra	lump	sum	repayments	at	any	time	without	penalty.	



03.
Choose the interest rate.
At	ASB,	you	have	a	number	of	options	to	choose	from	to	suit	your	circumstances	
and	budget:
A	floating interest rate	fluctuates	with	the	market,	which	means	your	repayments	
can	increase	or	decrease	at	anytime.	This	is	a	good	option	if	you	want	the	flexibility	
to	increase	or	make	lump	sum	repayments	without	penalties.	
Interest	on	Orbit	and	Orbit	FastTrack	accounts	are	set	at	a	floating	rate	of	interest.
A	fixed interest rate	gives	you	the	certainty	of	knowing	that	your	interest	rate	
won’t	change	over	the	fixed	interest	rate	period	you’ve	selected.	Fixed	interest	
rates	are	available	from	6	months	to	5	years.



Money stuff
                                                                                  03
I'm listening
if your circumstances
change.
From time to time you                     Make additional repayments
                                          without penalty.
may need to adjust your                   With	a	standard	floating	rate,	Orbit	
home loan to suit your                    or	Orbit	FastTrack	Home	Loan,	there	
                                          are	absolutely	no	penalties	for	early	
changing needs.                           or	lump	sum	repayment.	Increase	the	
You	can	chat	to	us	at	any	time	about	     repayments	on	your	fixed	rate	home	
making	your	home	loan	work	better	for	 loan	by	up	to	a	further	$1,000	per	
you	and	we	offer	a	range	of	options	to	   month	or	$500	per	fortnight,	with	no	
help	you	along	the	way:                   penalties	(any	increase	must	be	for	
                                          the	remainder	of	the	fixed	rate	term).	
Take a holiday from your
                                          For	fixed	rate	loans,	any	lump	sum	
home loan repayments.                     payments	made	during	the	fixed	rate	
You	may	be	able	to	suspend	your	home	 term	must	be	a	minimum	of	$10,000	
loan	repayments	for	up	to	three	months.	 and	you	may	be	required	to	pay	an	early	
The	principal	and	interest	repayments	    repayment	adjustment	fee.
suspended	during	that	period	will	be	
added	onto	your	loan,	and	interest	will	  I’m going to make switching to
continue	to	accrue	on	your	outstanding	   ASB easy for you.
                                          Refinancing	is	easy	and	we’re	dedicated	
loan	balance	during	the	‘holiday’.
                                          to	making	the	whole	process	as	smooth	
Top up your home loan.                    as	possible,	from	setting	up	transaction	
As	you	repay	your	loan,	you	may	apply	    accounts	to	transferring	payments.		
to	borrow	more	for	any	purpose,	still	    As	an	ASB	Home	Loan	customer	you’ll	
secured	by	your	house	and	still	at	ASB’s	 receive	outstanding	service,	help	with	
competitive	home	loan	interest	rate.	     your	lawyer’s	fees	and	you	may	also	
                                          receive	fee	exemptions	on	an	ASB	Omni	
Keep the same home loan
                                          account	and	an	ASB	Credit	Card	with	no	
when you move house.
                                          account	fees	for	first	6	months.*	
If	you	sell	your	home	and	buy	another,	
                                          Loan	holidays	are	subject	to	meeting	specific	ASB	
you	may	retain	your	existing	ASB	Home	 lending	criteria	and	terms	&	conditions.	There	must	also	
Loan	package	by	simply	exchanging	the	 be	a	minimum	of	12	months	between	the	expiry	of	a	loan	
                                          holiday	and	the	beginning	of	another.	*Excludes	Low	
security	to	your	new	property.            Interest	MasterCard




                                                                                Money stuff
                                                                             03
I'm the bit
about what your
lawyer does.

You might try to sell a                      2.    When your offer is accepted they:
                                             •	    Obtain	a	guaranteed	title	search	that		
house without a real estate                  	     temporarily	protects	you	against		
agent. But you should never                  	     claims	on	the	property.
                                             •	    Run	a	check	on	ownership		
try buying one without
                                             	     restrictions,	consents,	local		 	
a lawyer. With intimate                      	     authority	plans	and	any	other		
knowledge of all the traps                   	     potential	problems.
                                             •	    Make	sure	the	conditions	in	your	
you can fall into, these                     	     agreement	are	met.
professionals are more                       •	    Draft	mortgage	documents.
than just middlemen.                         •	    Make	sure	you	have	insured	the		
                                             	     property	(insurance	is	a	condition	of		
Basically,	lawyers	protect	you	by	           	     your	loan).
checking	contracts,	making	you	aware	        •	    Check	rates	and	other	costs	are		
of	your	rights,	crossing	the	t’s	on	the	     	     paid	up.
paperwork	and	ensuring	the	property	         •	    Arrange	for	draw	down	of	your	loan		
title	is	in	order.	That’s	before,	during	    	     and	payment	of	your	share	of	the		
and	after	you’ve	made	an	offer.              	     purchase	price.	
                                             •	    Send	you	a	settlement	statement.
1.     Before you make an offer they:
•	 	   Check	the	sale	and	purchase	          3.    On settlement day they:
   	   agreement,	auction	or	tender		        •	    Give	your	lender	mortgage	and		
   	   documents.                            	     loan	documents	and	the	certification		
•	 	   Make	sure	you’re	protected	by	the		   	     of	insurance.
   	   right	conditions.                     •		   Process	all	legal	papers	(title	and		
•	 	   Go	over	any	legal	issues.             	     transfer	of	ownership	documents).




Money stuff
                                                                      03




•	
	
	
      Pay	the	money	to	the	seller’s	lawyer		
      in	exchange	for	the	title,	transfer		
      papers	and	keys.
                                                 I'm about all
•		
	
      Register	the	new	mortgage	and		
      transfer	of	title	with	Land	Information	
                                             	   important
                                                 insurance.
	     New	Zealand.

4.    Then after settlement day they:
•	    Report	to	you	with	a	statement		
	     showing	payments	received	and		
                                           Whether	you’re	buying	your	first	house	
	     made	on	your	behalf.
                                           or	moving	into	a	new	one,	it’s	a	good	
•		   Report	to	your	bank	with	a	copy	of		
                                           idea	to	think	about	your	insurance	
	     the	title	showing	the	new	mortgage.
                                           needs	when	sorting	out	your	finances.	
If	your	lawyer	uses	KeyTrack,	you	can	     You	can	chat	to	one	of	our	insurance	
ask	them	to	keep	you	in	the	loop	via	      managers	on	0800	200	252	to	make	
keytrack.co.nz,	an	online	tracking	system	 sure	you	have	everything	covered	from	
that	sends	you	text	and	email	updates	on	 settlement	day.	
your	property	deal	as	it	happens.	
If	you	don’t	already	have	a	lawyer,	go	
to	conveyancing.co.nz	where	you	can	
locate	a	lawyer	in	your	area	and	request	
a	quote	for	their	services.	


      For more on the legal part of the
      process check out asb.co.nz




                                                                     Money stuff
                                                                            03
I'm waiting for
your application.
No pressure though.

When you’re ready to talk home loans,
we’re here to make things easy for you.
Whether	you’ve	found	your	home	and	you’re	ready	to	apply,	or	you’re		
starting	to	look	and	would	like	a	pre-approval	certificate	so	you	can	buy		
with	confidence,	these	are	the	things	you'll	need	to	flick	to	us:	

    	 Proof of annual income:	a	pay	slip,	or,	if	you	work	for	yourself,		
	     a	profit	and	loss	statement.	

    	 Details of your debts and expenses:	including	any	loans,		
	     credit	cards	and	hire	purchases.	

    	 Your sale and purchase agreement:	if	you	have	a	valuation		
	     or	any	other	report	on	a	property	would	be	handy	too.	

    	 Evidence of your deposit:	such	as	a	bank	statement.	

    	 Identification:	One	type	of	ID	if	you	already		
	     bank	with	us	or	two	types	if	you’re	new	to		
	     ASB.	Driver's	licences	and	credit	cards		
	     (ideally	with	a	photo)	are	good.




Money stuff
                                                                                                   03
I'm the fees
& charges bit.


When setting up your home                                  Orbit and Orbit FastTrack
                                                           fees and interest:		
loan some fees and charges                                 •	 Monthly	flat	account	fee	of		
may apply. Refer to our                                    	 $12	covering	all	unlimited	transactions	
                                                           	 and	repayments	and/or	redraws	
Guide to Fees for home
                                                           	 against	the	account	(this	excludes	
loans and personal loans                                   	 other	bank	ATM	usage	fees).	
for a full list. To get a copy                             •	   All	customers	who	use	other	banks'		
of this brochure, go to                                    	    ATMs	to	obtain	an	account	balance	
                                                           	    or	withdraw	cash	will	be	charged	
asb.co.nz or visit your                                    	    a	75¢	other	bank	ATM	usage	fee	
nearest ASB branch.                                        	    in	addition	to	the	Orbit	and	Orbit	
                                                           	    FastTrack	home	loans	flat	monthly	
•	 A	loan	processing	fee		                                 	    account	fee.	
	 of	$400	may	apply.				
                                                           •	   If	and	when	the	account	is	in	credit,	
•	   When	borrowing	more	than	80%		                        	    your	funds	will	earn	ASB’s	daily		
	    of	the	property’s	value,	a	low	equity	                	    Call	Account	rate	of	interest,	which		
	    fee	will	apply	and	a	registered	                      	    is	paid	monthly.	
	    valuation	may	be	required.	
                                                           •	 Interest	is	calculated	daily	at	our	
                                                           	 standard	variable	home	loan	rate		
                                                           	 and	charged	monthly.




ASB's	terms	and	conditions	and	ASB's	current	disclosure	statement	are	available	free	of	charge	from	any	ASB	branch	
or	online	at	asb.co.nz




                                                                                                 Money stuff
                                                                                   04
I'm going to help
you buy that
house, my friend.

Ways to buy. There are quite a few ways to buy a home,
whichever way you decide to go you should be checking
in with your lawyer every step of the way.
Offer & Negotiation.                               and	more	popular	requires	a	bit	more	
The	most	popular	way	to	buy	a	home,	               groundwork	as	you	can’t	place	conditions	on	
the	seller	will	have	an	advertised	sale	price	     your	bid.	Your	pre-approval	certificate	will	
(list)	or	will	be	sold	by	‘negotiation’.	This	     help	you	bid	with	confidence	and	steer	away	
means	you	can	put	in	an	offer	to	buy	the	          from	over	committing	yourself.	Make	sure	you	
property	through	their	real	estate	agent.	You	     have	checked	out	the	property	thoroughly	
can	make	an	offer	when	you	want,	and	build	        and	have	a	good	idea	of	how	much	it	is	worth,	
conditions	into	your	offer.	Make	sure	you	         when	the	settlement	date	is	and	what	is	
check	in	with	your	solicitor	before	you	make	      included	in	the	purchase	eg.	chattels.
an	offer.
                                                   Tender.
Private Sale.                                      A	tender	is	a	formal	offer	to	the	vendor.	
This	could	be	better	for	the	vendor	(seller)	as	   Unlike	the	usual	negotiation	process	you	
they	will	not	have	to	pay	commission	to	a	real	    are	not	able	to	counter	offer	if	someone	
estate	agent.	You	should	treat	this	situation	     else	offers	more	than	you	do.	For	this	
with	care	and	talk	to	the	sellers	solicitor	       reason,	agents	recommend	you	put	your	
before	every	move	you	make.	Make	sure	you	         highest	offer	up	front.	It’s	also	important	to	
pay	your	deposit	to	your	solicitor	so	they	can	    remember	that	if	your	tender	is	accepted,	you	
hold	it	in	a	trust	account	until	the	agreement	    must	buy	the	property.
is	unconditional.	
                                                      Check out asb.co.nz
Auction.
                                                      for further information.
Buying	at	auction,	while	becoming	more	




Ready to buy
                                                                 04
I'm here to
help you
seal the deal.

You've been looking for         •	   Don't	be	afraid	to	try	and	bargain		
                                	    down	the	price	of	a	home	you're		
months and finally found        	    interested	in.	Sometimes	a	seller		
the home of your dreams.        	    is	prepared	to	accept	less	than	the		
                                	    advertised	price.	It	will	help	if	you		
Congratulations. Now it’s
                                	    can	offer	a	bigger	deposit	or	be		
time to go out and make it      	    flexible	on	the	settlement	date.
yours. With these negotiating   •	   Don't	get	too	emotionally	attached		
tips up your sleeve your        	    to	the	property.	Weigh	up	how	much		
                                	    you	are	prepared	to	pay	before		
chances of a positive           	           w
                                     you'll		 alk	away.
outcome could be a whole        •	   Don't	tell	the	agent	or	seller	your		
lot better.                     	    top	price	-	the	real	estate	agent	is		
                                	    working	for	the	seller	and	they	
                                	    will	try	to	negotiate	the	highest		
                                	    price	possible.
                                •	 Don't	procrastinate	too	long		
                                	 as	the	vendor	may	get	another		
                                	 offer	in	the	meantime.
                                •	 Don't	sign	anything	you	don't		 	
                                	 understand	or	feel	pressured		
                                	 into	rushing	things.
                                •	 Make	sure	you	know	what		
                                	 the	property	is	worth.	




                                                              Ready to buy
                                                                         04
I'm getting
pretty close now.

Making an offer.                             •	 Check	the	finance	date	and		 	
Your	lawyer	can	help	you	through		           	 settlement	date	on	the	sale	and	
this	process,	here	are	a	few	tips	to		       	 purchase	agreement.
get	you	started:                              •	 Watch	out	for	any	escape	clauses.
•	   Make	sure	you	know	how	much	
	    money	you	can	raise.	Remember	our		 Stuff to cover off.
	    pre-approval	certificates	can	help	you		    		 Pre-approval
	    here.	You	can	choose	to	make	‘finance’		    	 LIM	Report
	    a	condition	of	your	offer	too.              	 Building	Inspection	Report
•	   Do	your	homework	and	make		                 	 Valuation	if	required
	    sure	you’ve	ticked	off	the	list.
                                                 	 Engaged	a	lawyer
•	   Be	clear	about	what	price	you	will		
	    pay	and	the	conditions	you	have		
	    around	the	sale	and	purchase.		
	    Make	sure	you	put	this	in	writing.




Ready to buy
                                                                 05
I'm so excited.
You're moving in!


Moving day. The day you’ve      Set	aside	some	moving	day	essentials:		
                                •	 A	torch,	first-aid	kit,	pencil,		
been waiting for. It’ll be an
                                	 paper	and	tool-kit.
upheaval for sure, but it can   •	 The	kettle,	tea,	coffee,	mugs,		
be as easy or stressful as      	 snacks	and	bottles	of	water.
you make it. First up, make     •	 Your	mobile	phone	and	charger.
sure you’ve got access to       •	 Bed	linen.
                                •	 A	change	of	clothes.
the house in advance. Also,
                                •	 A	toilet	bag	(including		
try not to move in on the       	 any	prescription	medicine).
same day that the previous      •	 Cash	for	takeaways.
owners leave.                   •	 A	bottle	of	wine	to	celebrate.	

                                You	might	also	want	to	create	a	
                                separate	valuables	box	for	important	
                                documents.	Things	like	birth	and	
                                marriage	certificates,	passports,	deed	
                                and	title	documents	and	the	contact	
                                details	for	your	real	estate	agent,	bank	
                                and	solicitor.	Because	you	never	know.




                                                                   Moving in
                                                                            05
I'm your handy
moving checklist.


Below is a checklist of things you'll need
to remember when you move house:
  	 Arrange	home	and	contents	insurance,	(ASB	can	help	you	with	this).		
	   If	you	have	existing	contents	cover	you	should	check	with	your	insurer		
	   that	you	are	covered	during	the	move.	

    	 Arrange	to	have	your	mail	forwarded	to	your	new	address.	

    	 If	you	are	currently	renting,	give	your	landlord	the	required	amount		
	     of	notice	and	check	if	there	are	any	other	conditions	you	need	to	satisfy		
	     to	get	your	bond	back,	then	apply	to	get	your	bond	back	from		
	     Tenancy	Services	Centre.	

    	 Get	quotes	from	moving	firms.	It	pays	to	shop	around.		
	     Do	this	well	in	advance	as	they	get	booked	up,	especially	over	weekends.	

  	 Have	your	existing	phone,	gas	and	electricity	disconnected		
	   and	cancel/transfer	delivery	of	your	newspaper.	

    	 Have	phone	and	electricity	connected	at	your	new	home		
	     (if	you	are	not	moving	far,	you	may	be	able	to	keep	your	existing	number).	

    	 Organise	a	cleaner	so	you	don’t	have	to	do	it	all	when	you	move	out.	




Moving in
                                                                                                     06
I'm a few smart
moves for managing
your home loan.

You've taken the plunge and                                 up	to	a	further	$1,000	per	month	or	$500	
                                                            a	fortnight	with	no	penalties	(however,	keep	
bought yourself a place to                                  in	mind	that	any	increase	must	be	for	the	
truly call home. Top stuff.                                 remainder	of	the	fixed	rate	term).	So	if	you	
                                                            can't	keep	up	the	regular	increase,	you	can	
Now all you have to do is
                                                            save	any	extra	money	and	make	a	lump	sum	
pay off that loan. Here's six                               payment	when	the	fixed	term	ends.	
smart ways to tackle your                                   Maintain payments at the
home loan.*                                                 same level when rates drop.
                                                            You'll	save	money	on	interest	and	pay	off	
Increase regular payments.	                                 your	loan	faster.	Just	pretend	your	rate	
By	paying	an	extra	$40	per	fortnight,		                     never	dropped	in	the	first	place	and	you'll	be	
you	could	save	as	much	as	$85,485	in	                       paying	off	that	loan	in	no	time.	
interest	repayments.	
                                                            Take a loan repayment holiday
Shorten term of loan.	                                      when you need a break.	
By	reducing	the	loan	to	20	years,		                         You	may	be	able	to	suspend	your	interest	
you	could	save	as	much	as	$171,420	in		                     and	principal	instalments	for	up	to	three	
interest	repayments.	                                       months.	The	interest	will	continue	to	accrue	
Pay off lump sums when you can.                             on	your	outstanding	principal	during	the	
With	a	floating	interest	rate,	or	revolving	                “loan”	holiday.
home	loan	such	as	Orbit	and	Orbit		             Top up your home loan.
FastTrack,	there	are	no	penalties	for	early		   As	long	as	the	top	up	is	not	used	for	
or	lump	sum	repayments.                         business	purposes	you	can	borrow	
On	a	fixed	interest	rate,	you	can	increase	the	 additional	money	and	spend	it	on	what		
repayments	on	your	fixed	rate	home	loan	by	 you	want.
*Examples	are	based	on	a	$250,000	loan	at	8.50%	p.a.	for	a	term	of	30	years.	Lending	criteria	apply.		
Loan	holidays	are	subject	to	meeting	specific	ASB	lending	criteria	and	terms	and	conditions.




                                                                               Managing your home loan
Let’s get things
underway.
 Phone or visit any ASB branch for an appointment to
 discuss your home loan requirements with a Personal Banker.

 Contact a lending specialist or your local ASB Mobile Lending
 Manager on 0800 100 600, they can meet you at your home
 or workplace, 7 days a week. They may even be able to
 approve your home loan on the spot if you provide the
 necessary documentation.

 Visit asb.co.nz

 Message us on facebook.com/asbbank

 Follow us on twitter.com/asbbank




                                                   ASB Bank Limited 56140 1306 1110

				
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