First Home Buyer Calculator

Purchasing your first home, or property can be very complicated and many facets of the purchase are often discovered at the time they're needed to be completed, allowing little time for planning or adjustment. This first home buyer calculator takes into account the journey from your budgetary calculations, to the loan profiling, to the loan length comparison, interest rate comparison, the ongoing property ownership costs, and the associated initial one-off property purchase costs. With this tool, you will be able to have a holistic view of how much money you will have to outlay to purchase the property in the immediate term, short term, and over the lifetime of the loan. Every question has an annotated explanation of the terms and question, if you click the '?' next the input to ensure that every part of the tool is easy to understand, making the whole decision-making process as easy as it can be.

Loan Repayment Costs

Purchase Price

 

$
?

This is the price that is agreed for the property purchase.

Deposit Available

$
?

This is your contribution as a deposit, which is usually ~20% of the purchase price.

Amount Borrowed

$
?

This is the remaining sum of money owed, which the lending institute will provide to cover the balance of purchase price minus the deposit.

Loan to Value Ratio (LVR)

%
?

The Loan to Value Ratio or LVR is the ratio of the amount borrowed against the purchase price.

Mortgage Lenders Insurance (LMI) Likely Required

?

Mortgage Lenders Insurance or LMI is an insurance premium payment, that is added to the standard loan interest rate to protect the lender.

Term of Loan In Years

years
?

This is the period in terms of years that you want to pay off the whole mortgage (principal and interest). The longer the term the lower the repayments will be each payment, but the higher the overall total repayment amount will be due to the additional incurred interest over time.

Loan Interest Rate Per Year

%
?

This is the interest rate that you have agreed to pay the bank over the course of the agreed term, which could be 0.5years to 5 years on your agreed deal. Once that time frame has elapsed, a new deal can be struck at the interest rate at the time for the remaining term of the loan.

Mortgage Lenders Insurance (LMI)

?

This is a flag for the calculator based on the result of the LVR ratio above. If the LVR ratio is above 80%, then the Mortgage Lenders Insurance (LMI) will likely apply.

Loan Interest Rate Used for Calculation

%
?

This is the loan interest rate used for the calculator's calculations. If an LMI doesn’t apply then it uses the standard interest rate, if it does apply then it uses the standard interest rate plus the premium you have chosen in the cell above.

Loan Repayment Frequency

?

This is the frequency or regular cadence in which you pay back the agreed repayment. Changing the repayment frequency to a more frequent payment will help you pay off the mortgage sooner and reduce the total interest charges over the life of the loan.

Number Of Repayment Periods Each Year

?

This calculates how many payments will be made per year based on the decision you have made for the loan payment frequency above. It is worth noting that there are technically 52.18 weeks per year, 26.09 fortnights, 12 months, 6 bi-monthly instances and 1 year in every year.

Loan Repayment Amount (without LMI)

$
?

This is the amount that you will repay every repayment frequncy period that you have decided above using the standard loan interest rate with no LMI adjustment.

Total Property Repayments Per Year (without LMI)

$
?

This is the amount that you will repay ever year using the standard loan interest rate with no LMI adjustment.

Mortgage Lenders Insurance (LMI) Premium Paid

$
?

This is the amount that you will repay every repayment frequncy period that you have decided above using the LMI adjusted interest rate.

Annual Mortgage Lenders Insurance (LMI) Premium Paid

$
?

This is the amount that you will repay ever year using the LMI adjusted interest rate.

Total Loan Repayment Amount (with LMI, if any)

$
?

This is the total amount that you will repay per repayment period.

Total Property Repayments Per Year (with LMI, if any)

$
?

This is the total amount that you will repay per year.

Principal versus Interest

Total Repayment Value

 

$
?

This is the total amount you will repay across the entire loan over the loan term.

Principal Paid

$
?

This is the principal amount that you will repay, which is the amount that you borrowed from the lending institute initially.

Interest Paid

$
?

This is the interest that you will pay on the loan, over the length of the loan.

Principal / Interest Ratio

?

This is the ratio of principal to interest that you will pay over the loan term. A lower interest ratio, closer to 0% is most preferable.

Associated Property Ownership Costs

Council Property Rates / Taxes

 

$

 

?

Council taxes or rates are a charge (tax) against a property set by the local and regional councils. The charge value differs between councils and regions in New Zealand, however this is a compulsory charge.

Body Corporate Fees / Homeowner Association Fees

$
?

Bodycorp fees or home owner association fees are a payment to pay for maintenance, repairs, upgrades, or other costs that are charged through levies to unit/apartment/townhouse owners. These fees are likely to increase every year, and can fluctuate in value depending on the need of the association at the time.

Compulsory Building Insurance

$
?

This is a compulsory requirement of most property based loans to insure against any large scale events that could impact the value of the property, such as fire or flooding.

Mandatory Life Insurance

$
?

This is a compulsory requirement of most property based loans to insure against any large scale events that could impact the value of the property, such as fire or flooding.

Property Maintenance Costs At 0.5% of Property Value

$
?

This is an automated calculation on the likely costs of maintaining a property each year. As with any asset, property requires upkeep to ensure that it stays in the same condition, or better than when it was purchased.

Total Associated Property Ownership Costs Per Year

$
?

This is the total cost per year of the associated costs of owning the property you have chosen.

Total (Loan/Council/Body Corp) Cost of Property

$
?

This is the adjusted cost per repayment period taking into account the cost of the loan repayment, the council costs (rates/taxes) and the bodycorp or homeowners association fees (if any).

Annual Total (Loan/Council/Body Corp) Cost of Property

$
?

This is the adjusted cost per year taking into account the cost of the loan repayment, the council costs (rates/taxes) and the bodycorp or homeowners association fees (if any).

Associated Initial Property Purchase One Off Costs

Property Conveyancing / Lawyer Costs

 

$
?

For a property deal to be completed, you will require property conveyancing work completed. This is usually completed by a Lawyer. The fees for this differ significantly dependent on the complexities of the deal. If the property deal includes a KiwiSaver purchase, a Trust, a company or multiple parties then it will likely cost more due to the additional billable hours required, and the AML (Anti Money Laundering) work required.

Building Report / Inspection

$
?

One of the conditions that would be prudent to have as a condition of purchase in the building report, or builders inspection. This is a check by a certified professional over the property to give you feedback in an official report on the overall condition of the property. This does cost money, however it will give you a much more informed set of information to make a decision on whether to purchase the property or not and will allow you to quantify the potential repairs/fixes that the property needs to be at the standard you require/

Land Information Memorandum (LIM) Document

$
?

The LIM or Land Information Memorandum is a report that is issued by the local council that summarised all of the information that the council has on the property. This is an important document that is not always supplied by the vendor. As this can take up to 10 working days to prepare depending on the council, and many unconditional deal periods are ~10 days, this should be one of the first questions asked before the deal is offered/accepted.

Registered Property Valuation

$
?

As part of a property deal, the lending institute may require that the property has a professional property valuation undertaken so they can be sure of the current value of the property.

Moving Truck/ Moving Company Costs

$
?

The moving cost is a tangible cost in the purchase process, as it can range from $400 - $4,000 depending on the distance and complexities of moving the belongings.

Immediately Required Appliances

$
?

Some new properties do not come with all chattels (washing machines, dishwasher, fridge) which are items you may need on day 1, therefore these would have to be purchased before the settlement date, for delivery on or after the settlement date.

Immediately Required Furniture

$
?

For a first home purchased there will be furniture items you may need on day 1, therefore these would have to be purchased before the settlement date, for delivery on or after the settlement date.

Immediately Required Additional Items (Lawn Mower, Alarm, Cameras etc)

$
?

Depending on the property, it may be a good idea to get the installation of an alarm, or security system done as the start before you are fully moved in.

Travel Costs for Open Home, Private Viewing, Inspections

$
?

If the property is a significant distance from your current home, such as in a different city, or island, then attending the viewings and inspections may incur a significant cost.

Potential Home Loan Sign On Bonus At 0.6% of Loan Value

$
?

This cashback is a payment to your bank account by your lender after the settlement has completed. It is a payment that is made as an incentive by the lender for you to stay with them. It is usually around 0.6% of the total lending value.

Total Associated Purchase Costs

$
?



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