I’m a Home
Shoes are fine.
to help you find
your way around
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
look for your
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.
If I might
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.
• 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
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.
I’m your home Starting
buying journey. out
Here are the 02
steps you'll House
follow to get
to your next Money
I’m here to help
you do your
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
I'm an idea of
how much you
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
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.
I'm up for a little
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
I’m five handy tips
to avoid insanity while
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.
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.
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
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
I'm the Home Loan
Choose one to suit or try a combination.
Want the certainty of regular
A Table Loan
could be best for you.
The traditional table home loan is the most
popular option. Your monthly or fortnightly
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
over the term of the loan. As you pay off the Interest
principal in even amounts, the interest cost
reduces with each repayment.
First payment Last payment
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
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
your cheque and home loan accounts into ba
Loan balance ($)
a single, easy to manage package. Ideal if
you need an ongoing credit limit which you
can access at any time. It lets you make
repayments at your own pace, or redraw up
to your credit limit without needing to reapply. Time
It’s like an overdraft with no set regular
A reducing limit revolving credit loan has
similar features to a standard revolving credit Re
loan but the credit limit will reduce over time. g l
You still have the flexibility to redraw up to
Loan balance ($)
your reducing limit, without having to reapply.
Ideal if you wish to repay your loan faster and an
keep a tighter control on your finances. la
I'm here to
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
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
but the loan limit
to do with ASB rate applied to
your loan will
over the fixed
term of your
There are no
sure that you are
paying off your
home loans: vary or float
loan, making it
loan over the
term you have
conditions. to budget. selected.
I want to keep my loan and
daily transactions separate.
I want the flexibility to redraw up to
my limit even if I’ve paid some off.
I want to make repayments
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
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
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.
I'm here to make
your home loan
work for you.
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.
Choose the repayment frequency.
Nominate whether you want to make your installments on a monthly or
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.
Choose the interest rate.
At ASB, you have a number of options to choose from to suit your circumstances
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.
if your circumstances
From time to time you Make additional repayments
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
I'm the bit
about what your
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).
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
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
I'm waiting for
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.
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
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.
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.
Check out asb.co.nz
for further information.
Buying at auction, while becoming more
Ready to buy
I'm here to
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
• 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
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
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.
I'm your handy
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.
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.
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
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
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ASB Bank Limited 56140 1306 1110