HOW IT ALL WORKS
To help you navigate the sales process, we’ve summarised 10 steps on the home-buying journey. If you’re buying your first home, then you’re probably feeling (a) extremely excited, and (b) a little nervous. It’s a big decision — one of the biggest you’ll ever make — and you’ll want to make sure everything goes as smoothly as possible. If you’re an old hand — if you’ve been there, done that — it’s still useful to have this information as a reference point.
1. KiwiBuild purchasers - Apply for KiwiBuild pre-qualification
Are you eligible for KiwiBuild? Find out at www.kiwibuild.govt.nz. You’ll find all the documents you need here — and you can also do your application online.
2. Get your finances together
Talk to a bank or independent mortgage advisor and find out how much you’ll be able to borrow. Many buyers like to get conditional pre-approval at this stage.
3. Legal representation
You’ll need a lawyer to advise and represent you. You might like them to review a blank Sale and Purchase Agreement.
4. Sign a conditional Sale and Purchase Agreement (and KiwiBuild Deed)
Once you’ve got all your ducks in a row, then come see us! We’ll draw up a conditional Sale and Purchase Agreement with you which includes a five working-day due diligence and finance condition. Please note: if you’re buying a KiwiBuild apartment, you’ll also have to sign a KiwiBuild Deed of Convenant.
5. Pay a 10% deposit to secure the apartment
Once you’ve signed the Sale and Purchase Agreement, you’ll pay a deposit equivalent to 10% of the purchase price of the apartment into your lawyer’s trust account. They’ll then transfer it to our lawyer’s account where it’ll be held in trust for the duration of the build. The deposit can either be paid from your savings—or you can use funds from KiwiSaver First-Home Withdrawal or First Home Grant.
6. Due diligence (five working days)
We’ll email a copy of the Sale and Purchase Agreement to you and to your lawyer.
Your lawyer will review the agreement and related documents.
If you haven’t already done so, you’ll need to get agreement in principle from your bank.
Apply for KiwiSaver First-Home Withdrawal / First Home Grant now if you intend to put these funds towards your deposit.
- Do your homework – dot the i’s and cross the t’s – so you’re well-informed and ready to proceed.
If you change your mind, you can walk away without penalty (and without having to give a reason).
If you’re happy to go ahead, your lawyer will let us know and our agreement will go unconditional.
We’ll provide you with regular updates as the build progresses.
9. Prepare for settlement
Finance: Most banks give mortgage pre-approval up to three months. This means you’ll need to get pre-approval again a few months prior to settlement to confirm your financial situation hasn’t changed. In the run-up to settlement, your bank may request a valuation of the apartment.
Pre-settlement inspection: In the 10 working days prior to settlement, you’ll also have the opportunity to conduct a pre-settlement inspection.
Once the building is complete and Ockham Residential has obtained the Certificate of Title and the Code Compliance Certificate (CCC), you’ll be issued with a settlement notice. Settlement will take place 10 working days afterwards. Now for the exciting part! At settlement, we meet you on site to hand over the keys and then give you a tour and induction into the building.
Very important: You’ll also need to do lots of your own research.
If you’re a first-home buyer, then definitely check out:
www.settled.govt.nz - It’s an independent website, set up by the New Zealand Government, that’s full of tips, essential resources and links to pretty much everything.
The following websites are also a great place to start:
www.hnzc.co.nz - Housing New Zealand (KiwiSaver first-home withdrawal and First Home Grant).
www.kiwibuild.govt.nz - All about KiwiBuild.