It’s also important to really be honest with yourself about what you can afford.
ANZ’s research tells us that more first home buyers are considering buying a house on the back of interest rates which are at a historic lows.
Low rates are undoubtedly good news for home buyers.
Interest rates have declined for a number of years but many home buyers have never had to contend with rising interest rates - so we’re encouraging our home loan customers to factor in a potential interest rate rise.
It’s important to ask: “Can we afford to keep up our mortgage repayments if interest rates go up?” and factor it into affordability calculations.
As a guide, a 1 per cent increase in the interest rate on the average $NZ379,000 first home loan would add about another $73 a week to mortgage repayments.
Paying down the mortgage became my biggest financial priority when we bought our first home.
We maintained our payment levels when interest rates went down and ploughed every spare cent into the mortgage.