Frequently Asked Questions
A Credit Score is a number between 0 and 1000 that indicates how good you are at paying off debt and keeping on top of bills. Everyone gets a Credit Score as they start using credit facilities and utility providers. Most scores are between 300 and 850, and a score between 600 and 700 is generally considered average in New Zealand. House Hounds aims to create a community of trustworthy, financially dependable members with complementary goals, so we've set the Credit Score benchmark at 700. That way, everyone in the House Hounds community is above average in the Credit Score world, and of a similar financial credibility to other members of the site.
Credit Bureaus collect credit history data from the government database, lenders, and service providers, which they use to make up your Credit Score. You need to have paid debt off in your lifetime in order for data to be collected about your repayment trends, so some people's scores may be lower or less accurate if they haven't had time to build up a good credit history yet, or haven't had credit or utilities in their own name.
That's why we've given our members another option: the GRI, or Geographic Risk Index. Statistics New Zealand divides the country into what's called "meshblocks". A meshblock is a group of 30 to 60 neighbouring houses. The Credit Scores of everyone in that meshblock who has one is averaged out and divided by 10 so it's a number between 0 and 100 rather than 0 and 1000, then applied to that whole meshblock.
For example, if a meshblock contains 50 houses, and 30 of those houses have an occupant with a Credit Score, those 30 Credit Scores are averaged out, divided by 100, and applied to all 50 of the houses in that meshblock. That score is now called the GRI. Often when a person doesn't have enough credit history to build up an accurate Credit Score, providers will use their GRI instead. Similarly to the Credit Score benchmark, if you opt to join House Hounds based on your GRI, it needs to be 70 or above.
The 3 Credit Bureaus in New Zealand are Centrix, Equifax, and Illion. House Hounds has chosen to partner with Illion to conduct both ID and Credit verification.
You can learn more about Credit Scores here:
https://help.clearscore.nz/hc/en-gb/categories/11513393323922-Credit-reporting-scores
https://www.creditcheck.illion.co.nz/info/learn
https://content.creditsimple.co.nz/learn/
https://instantfinance.co.nz/our-blogs/what-is-a-credit-score/
https://www.moneyhub.co.nz/credit-score-credit-check.html#18
And meshblocks here:
https://datafinder.stats.govt.nz/layer/115225-meshblock-2024/
No, but you can add it to your device's homescreen so you can access it just like an app.
Android:
1. Open househounds.co.nz in a browser on your Android device.
2. Tap on the browser menu button (typically three dots in the upper right corner of the screen).
3. Look for an option that says "Add to home screen" or similar; it may be different in different browsers.
4. You may be prompted to name the shortcut that will appear on your homescreen. Enter a name if required.
5. Tap "Add" or "Add to Home screen" to confirm to add the app to your homescreen.
Apple / iOS
1. Open househounds.co.nz using Safari browser on your iOS device.
2. Tap the "Share" button - it looks like a square with an arrow pointing upwards.
3. In the Share menu, scroll until you find the option labeled "Add to Home Screen". It may also be labeled as something different but similar.
4. You may have the option to customize the name of the shortcut that will appear on your homescreen. Enter a name if desired.
5. Tap "Add" or "Add to Home Screen" to confirm.
Once added, you'll see an icon on your homescreen that represents the app. You can now launch the app directly from there, just like you would launch a native app.
Trust is built in the House Hounds community by everyone coming into it as transparent, communicative, open, and reciprocal. Then:
1. User Verification
We run identity and Credit Score or GRI checks as a baseline for membership. Everyone who joins House Hounds is subject to the same verification. We hope to add biometric verification soon as an extra layer of both security and ID validation.
2. Behaviour Reciprocity
Think of it this way: if you're nervous about the kinds of people you'll meet here, it means others are nervous about meeting you. So, if you do everything you can to put others at ease, it's likely that others will do the same.
3. Recommended Processes
We strongly recommend spending time in person with those you're considering co-buying with. Lenders will go through all of your finances with a fine-toothed comb, so now's the time to be upfront and honest with each other. Co-purchasers are encouraged to seek legal counsel and draw up agreements specific to their situations, which we can guide you through.
Remember that you can connect with as many Hounds as you want and do as much research as you feel is right. If you don't believe you've found a good fit, then as long as you haven't entered into any legal agreements, simply communicate your feelings and withdraw from the conversation.
Yes! There are risks in buying property - or any other kind of investment - no matter what the means. And, just like other investments, there is potential for great reward.
House Hounds has done as much as it can to consolidate what you need to make an informed decision and connect you with purchasers whose goals align with yours. You still need to seek independent legal advice. Take as much time as you need to complete due diligence and feel comfortable with your investment decisions.
Think about it; everything we do now on a daily basis once seemed foreign and scary - we went from "don't talk to strangers" to literally hailing them and getting inside their cars. We order food, buy shares, transfer money, buy clothes, book flights, and communicate with strangers on a system that 30 years ago, didn't even exist.
Communal property ownership is not a new concept, House Hounds is simply bringing it to you in a way that makes sense and is easy to use. With the right research and planning, there's no reason why joint home ownership can't work successfully. It's time to beat the system!
Home loans are generally committed to a 30-year term. If you increase your initial deposit, you're borrowing less over the same time period, so the repayments are less.
Alternatively, you can keep the repayments the same and decrease the life of your loan. This can be tricky with high interest rates like we're facing today.
If you're really lucky, you can do both - decrease repayment amounts and decrease the term of the loan.
Remember that you always start out paying much more interest than principal.
This is from sorted.org.nz. The first image shows figures based on a $1m property with a $200,000 deposit:
This second image is the same property price and interest rate, but with a $400,000 deposit:
Monthly repayments and total interest are both significantly different.