RNZ reports Kāinga Ora’s First Home Loan insurance premium will rise from 0.5% to 1.2% on applications from July 1, 2025, as the government ends its contribution under Budget 2025—saving $17.9 million annually. The scheme allows first-home buyers to purchase with just a 5% deposit, bypassing standard LVR restrictions and often avoiding low-equity fees. The premium hike means a $550,000 loan’s cost could rise from $2,750 to $6,600, either paid upfront or added to the mortgage. Though the change was poorly communicated, Jeremy Andrews of Key Mortgages says the scheme remains valuable due to one-off fees and flexible approval options.
Key Mortgages shares details with Good Returns how expanded low-deposit lending options may help eligible first home buyers enter the market sooner and with better pricing
As featured in Stuff, buying property with friends or family can improve affordability, but clear agreements and proper structure are essential.
Banks and Mortgages advisers discuss with New Zealand Herald, why home loan approvals may take longer as lenders apply more detailed affordability checks and tighter financial assessments.
In our recent discussion with Radio New Zealand, we shared that age alone doesn't prevent home loan approval, but lenders carefully assess retirement income and long-term repayment plans.
Key Mortgages has been committed to supporting clients for nearly a decade, offering ongoing advice and tailored solutions without extra fees, even as industry changes occur.
Jeremy from Key Mortgages shares experiences of fixing in high rates long term and using break fee benefit calculator. One couple’s complaint over costly break fees after fixing five-year mortgage at 6.29%–6.66% rejected.
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