How Travis, a seasonal worker, got a home loan with a 5% deposit

Travis, a 37-year-old seasonal worker in New Zealand (we’ve changed his details), had always dreamed of owning his own home. Working in the horticulture and viticulture industries, he moves between seasonal contracts, picking and packing fruit throughout the year. While his income is steady across different employers, banks have refused to approve a home loan because his contracts were not permanent.

“I had a good income, but because I wasn’t in a ‘traditional’ full-time job, I struggled to get a mortgage. Every time I spoke to a bank about getting a mortgage, I was told I needed at least a 20% deposit and a permanent job. Buying a stable home for me and my family just seemed impossible,” said Travis.

How Global Finance helped Travis secure a home loan

It was suggested to Travis that he get in touch with the mortgage experts at Global Finance. Our team assessed his situation and recommended the Kāinga Ora First Home Loan.

Kāinga Ora First Home Loan

This government-backed scheme allows eligible first-home buyers to purchase a property with just a 5% deposit, provided they meet the required employment and income criteria.

As Aseem Agarwal, Head of Mortgages at Global Finance, explained:

We see a lot of seasonal workers in horticulture, agriculture, hospitality, and industries affected by seasonal supply and demand in New Zealand, particularly in the Bay of Plenty, Nelson, Marlborough, Otago or KeriKeri, for example. Kāinga Ora considers a seasonal worker’s employment history over three years. If you’ve worked consistently in the same industry or job type for at least two years, even with different employers, you can potentially qualify for a loan with only a 5% deposit.

Meeting the Kāinga Ora criteria

Our mortgage advisors worked closely with Travis to put together an application. We helped him:

• Provide three years of employment history through IRD records.
• Demonstrate a stable annual income by averaging earnings across different seasonal jobs.
• Show that he had remained in the same industry and job type for over two years.

“Kāinga Ora looks at whether your job type or industry has remained consistent,” explained Aseem. “For example, if you’re packing avocados for one company and kiwifruit for another, your job remains the same even if the employers change. If you work in the wine industry and switch from pruning and vintage to working in the restaurant or at the cellar door, your job may change, but because the industry or employer hasn’t, you may qualify for a home loan with a lower deposit. However, if you switch from fruit picking to working on a ski field over winter, you would be unlikely to qualify.”

Aseem provided another example of how loan eligibility is assessed:

“Let’s say, for example, you started as a packer or assembler in a fruit packing facility and later worked at assembling health equipment for export. Although the industry has changed, the nature of your job, being an assembler on a production line, has remained the same. In this case, you would still qualify for a Kāinga Ora first home loan because your role has stayed the same, even if your employer and industry have changed.”

Presenting the strongest case for loan approval

One of the keys to securing a home loan as a seasonal worker is presenting your employment history in the most favourable light. This is where Global Finance’s expertise made all the difference for Travis.

“We examined both the job contracts and the job descriptions to determine which aspect better supported his case,” said Aseem.

He continued, “Kāinga Ora won’t necessarily understand the ins and outs of different job titles and industries. Our expertise allows us to highlight the key aspects of a person’s work history and consistent income, so they meet Kāinga Ora’s approval criteria, and we present the case accordingly.”

Loan approval and buying his first home

With Global Finance’s help, Travis was able to present a strong case to Kāinga Ora. He successfully secured his home loan with just a 5% deposit. Once approved, Travis was then able to access the same competitive mortgage interest rates as buyers with a 20% deposit.

Travis bought a house in the Bay of Plenty, where he works most seasons, providing stability for himself and his family.

“Without Global Finance, I wouldn’t have known how to approach the bank or present my case to Kāinga Ora. Their advice made all the difference. Now, I finally own my first home.”

How Global Finance can help you

If you’re a seasonal or casual worker, don’t let the 20% deposit requirement discourage you. The mortgage brokers at Global Finance are experts at helping casual and seasonal workers across New Zealand.

• They can assess your employment and income history to determine eligibility for a home loan with a lower deposit through Kāinga Ora.
• They can help you prepare the right documentation.
• They can help present your case to Kāinga Ora in the best possible light.

“With the right approach and documentation, securing a home loan is possible. Our team is here to help you every step of the way,” said Aseem Agarwal.

If you’re a seasonal or casual worker ready to buy a home, contact a Global Finance mortgage broker today. Either email info@globalfinance.co.nz or call 09 255 5500.