Significant changes to the First Home Partner scheme make Kiwi dreams a reality
In early August, the NZ Government announced significant changes to the First Home Partner Scheme, due to take effect from August 14th, which would widen the scheme's availability to Kiwi's looking to buy their first home.
Since it's launch in October 2021, The First Home Partner Scheme has helped hundreds of individuals co-purchase a home together with Kāinga Ora. Co-ownership means that you are the majority homeowner, but share the ownership of the home with Kāinga Ora initially. You then purchase this share back over time until you are the sole homeowner.
As an example, let’s say you have managed to save 10% of the total home purchase price, and you are able to obtain a loan for 80% of the remaining amount. In this scenario, Kāinga Ora steps in and contributes the remaining 10% required. In exchange for their financial contribution, Kāinga Ora obtains a 10% share in the ownership of the home.
As of August 14, there will be the below key changes to the eligibility criteria:
- All eligible applicants can purchase existing homes (this is an expansion to the previously criteria which only allowed for new build purchases through the scheme).
- The household income cap has increased from $130,000 to $150,000.
- The income cap criteria for intergenerational whānau has broadened to include larger whānau, allowing any eligible whānau of at least six people who normally live together to purchase a home through First Home Partner.
The below criteria still apply as before. To be eligible you must:
- Be over 18 years old and a New Zealand citizen, permanent resident or resident visa holder who is “ordinarily resident in New Zealand"
- Be a first home buyer or previous homeowner in a similar financial position to a first home buyer
- Have not previously received shared home ownership support from Kāinga Ora.
- Be buying a home to live in as your primary place of residence and commit to living in the home for at least 3 years
- Be in a financial position to contribute a minimum deposit of 5% towards the home purchase
To find out whether the First Home Partner scheme could be right for you, chat to us today.