Home loan

Are you looking to buy your first home but don’t quite have the deposit or home loan required to purchase the home you want? Kāinga Ora’s First Home Partner Scheme may help you get on the property ladder.

 First Home Partner is a shared ownership scheme whereby first home buyers are given the opportunity to purchase a home together with Kāinga Ora. It is a scheme that is administered by Kāinga Ora to offer support to first home buyers with the aim to have that buyer completely own their own home as soon as they are financially able to do so. First Home Partner specifically supports the purchase of newly built homes that have received their Code Compliance Certificate within the previous 12 months and have not been owned or occupied previously.

What is shared ownership and how is shared ownership determined?
When buying a property under shared ownership, you initially share ownership of the property with a third party, in this case Kāinga Ora. Here, you own as tenants in common and you will hold majority of the ownership and will have the opportunity to buy Kāinga Ora’s share in the property when you are ready. The shared ownership will be governed by a Shared Ownership Agreement and you and Kāinga Ora will be listed on the Record of Title as co-owners.

The make-up of shared ownership is determined by:

  • Your deposit;
  • How much your lender is willing to lend you; and
  • How much Kāinga Ora will contribute towards the purchase of the home.

The maximum contribution Kāinga Ora will make towards a purchase is 25% of the purchase price or $200,000, whichever is less.

How do I qualify?
In order to qualify, you must be over the age of 18, be a New Zealand citizen, permeant resident or a resident visa holder who is an original resident in New Zealand, have a total household income before tax of no more the $130,000, have a good credit rating, be a first home buyer and not have previously received shared ownership support from Kāinga Ora.

In addition, you must be purchasing the home for you to live in and commit to living there for at least three years. You must also provide evidence that you have a contribution of at least 5% of the purchase price and that the bank is willing to provide you with a home loan. Once you receive pre-approval from the bank, Kāinga Ora will confirm how much they can give you towards the purchase of your first home.

Ongoing Requirements
During the shared ownership period, you will be required to meet with a Kāinga Ora Relationship Manager annually to review your financial circumstances and work towards the goal of achieving full home ownership. Kāinga Ora will assist you in achieving the goal of purchasing the share of the home owned by Kāinga Ora within the first 15 years of ownership. You will also be required to seek permission from Kāinga Ora before making any improvements or alterations on the property and will need to obtain consent if you plan on selling the property.

How do I buy the share owned by Kāinga Ora?
You can choose to purchase the share owned by Kāinga Ora as a single lump-sum payment, or in smaller individual payments that meet the minimum purchase amount. The amount required for payment is determined by the value of the home at the time. This means that if the value of the home has increased by 10% from when you originally purchased it, it will cost you 10% more to purchase Kāinga Ora’s share. Once you have purchased Kāinga Ora’s share, you will be the sole homeowner and Kāinga Ora will be removed from the Record of Title.

Alternatively, if you decide to sell the home whilst you and Kāinga Ora are still shared owners, the sale proceeds will be split proportionate to the share held by each party.

If you qualify for the First Home Partner Scheme and would like any assistance with buying your first home, please do not hesitate to contact us.