Buying your next home

Where do I start?

Selling your current home and buying a new one can be a busy time, but we're here to help. For most, the option to sell your current home first can leave you with the equity and a clear budget to purchase a new home. But there are times where buying first may suit your circumstances better.

There's no perfect solution in this situation. Every purchase or sale is a unique experience. If you’re starting to think about buying, it's a good idea to get your current home and finances in order. Talk to one of our team and give them an indication of your plans so we can help find a solution that works best for you.

 


Selling your current home first

Ideally you would time the sale of your old home and purchasing your new house as closely together as possible. This will help avoid the expense and trouble of having to organise a rental and moving house twice. However, depending on the property market in your chosen area, it could mean that you're left trying to find your next home when your current house has already sold.

Even if you do find the right property, it can take longer than you might anticipate to reach settlement, which means you may have a period of time between exiting your last home and moving into your new one.

Give one of our team a call to discuss your options for this situation. We may need to arrange bridging finance to cover your offer on the new home.


Buying your next home first

If a house that ticks all the boxes comes on the market it can be hard to resist putting an offer on it, especially in a hot market with lots of competition.


Owning two homes

If your offer is accepted you may find yourself in the position of owning two homes. Unless you can align the settlement dates on the two properties perfectly, you’ll find yourself in a position of needing to service two home loans.

Owning two homes can also have insurance implications as you’ll need to have both covered until you can hand over ownership of the property.

If you're planning to buy first, you can make the sale of your existing home a condition of your offer. While this takes the pressure off, it may also make your offer less attractive.


Negotiate a longer settlement date

Alternatively you could try to negotiate a longer settlement when you buy the new house, which will give you more time to sell. Discuss options with the real estate agent to find out how you can negotiate an offer that the seller would still be happy with.

There's no perfect solution in this situation, every purchase or sale is a unique experience. If you’re starting to think about buying, it's a good idea to get your current home and finances in order. Talk to one of our team and give them an indication of your plans so we can help find a solution that works best for you.


Know the market

Is it a sellers’ market?

Whether you’re planning to sell or buy first, start talking to real estate agents in your area to find out what might be coming on the market, and ask them for a market report to see whether there is a current demand for a property like yours.
 

Start your house hunting early and watch the market regularly

If your needs are quite specific, you may find the type of property you’re looking for doesn’t come on the market that often so you should prepare your selling strategy based on this – will you be left needing to rent if your home sells before your next property comes up? Put in a contingency plan in case you sell before you can buy – would you need to rent, or could you stay with family short term? Are there pets you need to consider? It can be harder to find a rental that allows pets so all of these factors should be considered before you put the ‘For Sale’ sign outside.


Preparing to sell

Tidy up and declutter

Now is a great time to start tackling all those jobs around the house that you’ve been putting off. Prepare your current home for sale – tidy the garden, declutter and touch up paint where needed. It can be handy to have a friend pop round and get them to tell you what they see – this can help to determine what your perspective buyers might focus on. Look at your property through the eyes of a potential buyer.


Review your home loan

When it comes time to sell your home, you’ll want to try and achieve a maximum profit. If you’re thinking of selling, increase your home loan payments to build up your equity. When it comes time to sell, more of that sale profit can be converted to cash. Consider what your budget allows – can you make extra one-off payments, pay a little more on your scheduled payment or change your repayment frequency to help pay off that loan faster. 

 

MANAGE YOUR HOME LOAN

 

 

Things to think about

Council Rates

Remember to check what your local Council rates will be per year so you can factor this cost into your budget.

Insurance

If your home is damaged by an unforeseen accidental event such as a natural disaster, fire, accident or storm, House cover arranged by TSB in conjunction with TOWER can help protect you when the unexpected happens. Make sure you’re covered.

Maintenance

Older properties will require more maintenance than a newer build, factor in an annual budget for regular maintenance depending on the age of your property.

 

 

Unit Titles

Unit title owners own a defined part of a building, such as an apartment and share common areas such as lifts, lobbies or driveways with other owners. As an owner of a unit title property, levies are an annual cost you will need to pay.

 

 

Your home loan options

 

Home Loan Special Rates

YOUR RATE

Whether you’re after the certainty of a fixed term, the flexibility of floating, or a combination of both, we have a range of competitive rates to offer.

HOME LOAN RATES

tsb home loan house

YOUR HOME LOAN OPTIONS

When it comes to loan type and repayment plans, one size doesn’t fit all. Enjoy the freedom of a revolving credit, or make budgeting easier with a fixed home loan - whatever works best for you.

LOAN & REPAYMENT OPTIONS

tsb home loan calculator

YOUR REPAYMENTS

Align your repayments to suit your lifestyle, whether it's weekly, fortnightly, monthly or quarterly. Use our home loan calculator to see what your repayments could be.

HOME LOAN CALCULATOR

 

 

Manage your home loan

With a little planning and some helpful home loan tools, you can shorten the length of your loan term, reduce the amount of interest you pay, and save money in the long run.

See how our home loan features can help you pay off your loan sooner.
 

We’re here to help

If you’re unable to make your regular payments and are facing unforeseen hardship, there are options available to assist you through difficult times.

 

 

StepUp
Automatically increase your repayments by a small amount each year.

 

 

 

Chat to us today

 

 

Save time - start your application

Download the application form below, fill out what you can and email it to emailsupport@tsb.co.nz. We’ll then contact you for any further information we might need and to discuss the next steps. You can also make an appointment with your local branch, give us a call on 0800 872 226 or let our Mobile Mortgage Managers come to you – whenever and wherever suits.

When you’re ready to talk with one of our team, you’ll need to provide us with the following to assess your loan application:

  • Evidence of your income if your wages aren't deposited directly into a TSB account (three months’ bank statements and your two most recent pay slips).
  • Or, updated financial statements for the last two years if you're self-employed.
  • Three months of statements for any credit cards, hire purchases or personal loan facilities.
  • Photo Identification (Driver’s License or Passport - these may need to be certified).

If we need more information or additional documentation, we’ll let you know what else you need to bring along.

 

GET STARTED
application form MESSAGE US
  • Don’t forget to read this bit

    Terms and Conditions – refer to the terms and conditions of your loan. Take a look at our Disclosure Statement or grab a copy from your local branch. TSB’s current assessment lending criteria, lending terms and conditions, interest rates and fees apply. Use of accounts and services are subject to TSB’s General Banking Information.

    1. Offer available from 20 August – 13 October 2018 for loans relating to residential properties only. Additional interest rate margins may apply for bridging loans and buyers with less than 20% deposit (including Welcome Home loans). Loan must be contracted during the campaign period and drawn down within 60 days of contracting. Offer can be withdrawn or amended at any time. All interest rates are subject to change without notification. TSB’s current account opening criteria, current lending criteria, terms and conditions, fees and interest rates apply. 

    2. Use of ATMs not owned by any bank in New Zealand may incur a service fee (in addition to standard account transaction fees) for which TSB receives a commission.