How to get your dream home loan

Tough new loan rules requiring homebuyers to stump up 20 per cent of the cost of a house should not stop those who are serious about getting onto the property ladder.

Although ANZ, National, ASB and Sovereign have officially limited lending to 80 per cent of a property's value, this doesn't mean first-time buyers must delay their dreams while they save the rest, says Jodi Cottle, author of Young & Singles Guide to Property Investment and director of Sable Mortgages.

"There are still a couple of mainstream lenders out there that will lend 95 per cent," says Cottle. "The key to this is that they require the 5 per cent to be genuine savings and they require the borrower to have squeaky clean credit history and stable employment."

Mark Jurgeleit, principal of Meta Mortgages, says Westpac will still consider lending above 80 per cent to "clients with proven incomes," but borrowers should expect more in-depth assessment of their ability to repay than had become the norm before the credit crunch.

Banks will lend outside their criteria based on merit.

To read the full NZ Herald story click here

Posted: 15 Dec 2008

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