First Home TOGETHER tips
In September 2022 we launched First Home TOGETHER to help Police and their whānau get into their first home, faster. Since then, we’ve helped seven members buy their first home and want to help more!
If you’re struggling to save up enough for a house deposit, First Home TOGETHER (FHT) could double your deposit and halve the time it takes to get into your first home.
With the recent increase in enquiries and applications for First Home TOGETHER (FHT) we’ve popped together some tips for members who are thinking about applying. This info is designed to help you see if FHT is right for you and to improve your chance of a successful application.
1. Work out if FHT is right for you
As a shared ownership home loan package, FHT isn’t suitable for everyone.
It can only be used to buy a house that is already built, so if you're wanting to purchase some land and build a house, you’ll need to look into other options.
You might have a big enough deposit saved that you’d be better off with a standard home loan rather than FHT.
Have a read through our info about FHT, including our brochure, to get an idea of whether FHT could work for you.
2. Use the scenario calculator
Our scenario calculator allows you to see how much ‘deposit help’ you may be eligible for, the maximum purchase price of a property based on your deposit, and an indication of your home loan repayments.
This will give you a good idea of whether the home loan will be affordable and if you've saved up enough deposit to buy the type of house you want.
Note: You’ll need to be on a desktop to use this calculator.
3. Sort your money
You’ve played with the calculator, read up on how FHT works, and are getting serious about applying. What now? It's time to improve your chance of approval by making sure your money is sorted!
- Check your Credit Score ✅
A clean credit history shows that you can manage your debts. We'll review a copy of your latest credit score as part of your loan application.
You can order a copy of your credit score from Equifax and Centrix to understand whether there's anything in there that might impact your application.
- Reduce or remove any debt 💸
Any debt you have will impact how much money you'll be approved to borrow. This includes credit cards, personal loans, store cards, and Buy Now Pay Later.
Even if you pay your credit card balance off in full each month, the limit on your credit card is taken into account as part of your application. It can reduce the amount you're approved for by thousands of dollars.
So before you apply, we recommend doing what you can to reduce your debt, including cancelling or reducing your credit card limits.
Check out Sorted NZ for tips on sorting your debt.
- Review your bank accounts 🏦
Take a look at your last 3 months of bank statements to see if there are any changes you should make before applying.
When you apply for a loan, we review the last 3 months of all your bank accounts to understand your expenses, spending, and savings. We’re looking for consistency and that your bills are all paid on time.
If you’ve had a couple of months of unusual spending like a long holiday, big purchases, or short-term expenses, it’s worth making a money plan and sticking to it for 3 months before you apply.
Having 3 months of tidy accounts makes it easier and faster for us to assess your application.
Got more questions?
If you have some unanswered questions about how FHT works please check out our FAQs page.
You can also:
- Call us on 0800 429 000
- Email us at info@policecu.org.nz
- Send us an enquiry through the link below