The amount you contribute
In a mortgage discussion, your deposit is the portion of the purchase price you contribute yourself. For example, with a price of NZ$700,000 and a contribution of NZ$140,000, the mortgage would be NZ$560,000 before any additional costs. That contribution represents 20% of the purchase price. This example is arithmetic, not a lender requirement.
The deposit in the purchase agreement
The agreement also specifies an amount payable towards the price and when it is due. It is part of your purchase funds, so avoid counting it twice. Your lawyer can explain its timing, where it will be held and what is due at settlement.
Evidence for the lender
- Savings. Statements can show balances and how money accumulated.
- A family gift. Tell the lender whether repayment is expected. It may ask the giver for written confirmation.
- KiwiSaver. Check eligibility, the available amount and processing time with your provider.
- Sale proceeds. If you are moving, allow for the current mortgage, selling costs and the timing of settlement.
Understand a KiwiSaver first-home withdrawal · Plan your savings