Kāinga Ora - First Home Partner
First Home Partner is a shared ownership scheme administered by Kāinga Ora – Homes and Communities, as another way to help first home buyers into their own home.
Shared ownership is where you are the majority homeowner, but you initially share ownership of a home with a third party – in this case, with Kāinga Ora. Shared ownership schemes are usually designed to help those who have an insufficient deposit or cannot service a larger mortgage on their own.
With First Home Partner, the home buyer provides a minimum deposit of 5% toward the purchase price of the home. Kāinga Ora then contributes an agreed amount in return for an equivalent share in ownership – up to 25% of the purchase price or $200,000 (whichever is lower).
The buyer then progressively purchases back the share of the home owned by Kāinga Ora at the current market value, increasing their share of ownership in the home. The goal is to achieve full ownership within 15 years.
How is buying a home with First Home Partner different?
- The home buyer will need to meet the lending criteria of a bank to receive a home loan.
- The homer buyer is responsible for all loan repayments to SBS.
- The home buyer is responsible for the typical costs involved in the home purchase (such as legal advice, conveyancing, bank fees).
- The home buyer is responsible for all regular ownership costs associated with the home (such as rates, insurance, and upkeep of the home).
- The home buyer can make the home their own, including furnishing and decorating.
- First Home Partner can only be used to purchase brand new homes or homes off the plans.
- The home buyer and Kāinga Ora enter into a shared ownership relationship in order to purchase the home together.
- Kāinga Ora is a co-owner on the title of the home with the home buyer as long as it owns a share of the home.
- The home buyer meets with Kāinga Ora at least annually as part of a Goals Management Programme to discuss progress toward becoming the sole homeowner.
- The home buyer needs to seek prior approval from Kāinga Ora before making improvements or renovations to the home, selling the home, or selling their share in the home to another party.
To be eligible for First Home Partner, you must:
- Be over 18 years old
- Be a New Zealand citizen, permanent resident, or resident visa holder who is ordinarily resident in New Zealand or be applying with someone who meets the citizenship or residency requirements, and you are married to or in a civil union or de facto partnership with that person
- Be a first home buyer or a previous homeowner in a similar financial position to a first home buyer
- Have a total household income of no more than $130,000 (before tax) from the last 12 months
- Be in a financial position to contribute a minimum deposit of 5% towards the home purchase
- Be buying the home for you to live in and commit to living there as your primary place of residence for at least three years from your settlement date
- Have not previously received shared ownership support from Kāinga Ora
To start an application or for more information on the First Home Partner scheme, visit the Kāinga Ora website here.