First- time home buyer? Westpac launches new home loan product to help get you started

28 August 2013 - Which Way To Pay

Home loans: Do you want to buy a house but worry you have not got sufficient deposit?

Westpac has launched a service that allows family members to help first-time home buyers onto the property ladder. The move comes ahead of restrictions that will make it tougher to get a loan for those with low deposits.

Buying a house? No cash will be required upfront with this home loan

Last week Westpac announced an "innovative home loan option" that avoids first home buyers having to come up with a deposit on their own. The bank will accept equity in the property of an immediate family member as the deposit needed for the loan. No cash will be required upfront. This new product has been available since the beginning of the month.

"For a number of years now many New Zealanders have been focused on building equity rather than investing. This is a way they can leverage that equity to a level they are comfortable with and help their children or grandchildren into home ownership," said Ian Blair, general manager of retail bank at Westpac. "Family Springboard means family can help without having to hand over cash or lose interest on their savings. If the value of the property purchased increases sufficiently or the springboard part of the loan is repaid, the loan could be restructured to remove liability of the family member."

Are there alternative home loan products available?

This follows the launch of another Westpac home loan product – Choices Offset. This provides customers the ability to use the balance of their Westpac transaction and savings accounts to offset against their floating home loan and only pay interest on the difference. They claim this could save you thousands on your interest repayments and cut years off your home loan.