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Couple despairs of ever reaching 20pc home deposit

By Sonya Bateson

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Tauranga couple Vicki and Stefan Nogaj say they will either have to leave the country to buy a home or rent for the rest of their lives if the Reserve Bank decides to lift the minimum deposit for home loans.

The Bay of Plenty Times spoke to the Nogajs in May when a Reserve Bank proposal to raise the minimum deposit for home loans was announced.

The couple were in the process for saving for their first home but as it now stands, Mr Nogaj said he said they will either need to leave the country to buy a home or face renting for the rest of their lives. So far they have saved $20,000 towards their deposit.

"At this stage our goal is to rely more on our KiwiSaver and we're waiting for our three years. Hopefully we can use that as a catalyst to get into our first home."

Mr Nogaj called their situation "borderline depressing".

"It would be nice to have a home we could call our own. We want to set up a nest egg for our three children for their future as well. With every year that passes, that dream seems further and further away."

To save up a 20 per cent deposit, Mr Nogaj said they'd be looking at $80,000 which would take another few years. As Mr Nogaj is now 40, with a 25 to 30 year mortgage term he would be well past retirement age before paying off the mortgage.

"The longer it takes to save the deposit, the older we get.

 

- BAY OF PLENTY TIMES

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