We get this question a lot, especially from first home buyers just starting to think about how to get into the market.
"Should I talk to someone about budgeting and saving first, or go straight to a mortgage adviser?"
It’s a great question, and the answer really depends on your goals and where you're at financially. So let’s break it down.
Start with your timeframe and your goals
If you’re planning to buy a home in the next 6 to 12 months, chatting to a mortgage adviser is usually the best first step. We can tell you what your options look like right now, how much you might be able to borrow, and what deposit you’ll need.
If your goal is a little further down the track, or you’re just getting started with saving and want help getting your finances sorted, a budgeting coach or financial mentor could be a great first step. They can help you set a plan to get your spending under control, pay down debt, and start growing your savings consistently.
A mortgage adviser, who see's peoples budgets all day, every day is also likely to be able to shed some light on where you could adjust your budget accordingly if needed.
A mortgage adviser helps you set a target
One of the biggest benefits of talking to a mortgage adviser early is that you’ll get a clear idea of what you need to aim for. Rather than randomly saving and hoping it’ll be enough, we can show you:
What deposit you’ll need for the type of property you're after
How the banks assess your income, spending, and debts
What steps to take next to get into a stronger position
That way, you can budget with a purpose.
Don’t wait until everything is perfect
A lot of people think they need to have their finances “perfect” before they talk to us. That’s absolutely not the case. We work with clients at all stages of the journey.
Even if you’ve only just started saving, or you're still figuring out your budget, we can help you understand where you stand now and what to work on next. Sometimes people are closer to buying than they think.
Sort your KiwiSaver early
This is a big one. Whether you’re just starting out or nearly ready to buy, getting your KiwiSaver fund set up correctly is essential.
A KiwiSaver adviser can help you choose the right type of fund for your timeframe and risk level. Being in the wrong fund could cost you thousands in the long run, so this is something we always recommend getting sorted sooner rather than later.
Budgeting support still has a role
If you’re trying to get out of a cycle of overspending, pay down debt, or build better money habits, a budgeting coach or financial mentor can be an awesome support person alongside your mortgage adviser. Generally budgeting support has a cost associated which needs to be balanced with the benefits of it as well.
At My Mortgage, we regularly support clients with budgeting as we know it’ll help them get into a stronger position faster and we can, if required, refer them through to budgetting support.
We’ll point you in the right direction
The bottom line? If you’re even thinking about buying a home, it’s worth having a chat with a mortgage adviser. There’s no cost to talk and we’ll give you clear next steps for your specific situation.
And if you need extra support with budgeting or KiwiSaver along the way, we’ve got the contacts to help you out.
Get in touch with one of our advisers for a free chat. We’ll help you understand your options and make a plan that works for you.
