BankDirect has launched a 100% home loan product which it says will make it easier for first home buyers to get on the property ladder.
“It has been well documented that thanks to the boom in house prices, student loan debt and high rent, many young professional New Zealanders are finding it near impossible to buy a first home,” Head of Bank Direct Jim Anderson says.
The 100% Home Loan package is structured with a 10% variable component with the clear objective to help borrowers pay back 10% of their loan within five years.
The loan is aimed at Generation X, 25-39 year olds who representi approximately 20% of New Zealand’s population.
Anderson says this group also makes up the largest group of New Zealander’s intending to buy a first home. “The 100% Home Loan package is about helping people fast forward their life goals, whilst managing their financial situation in a prudent manner."
“The home loan holiday feature should quell many people’s fears that taking on a mortgage might prevent them from being able to achieve other goals, such as starting a family and being able to take maternity leave or taking a mini OE,” Anderson says
