Prospective first home buyers are being encouraged to explore a new ownership model through the First Home Partner Scheme. The programme has been developed by Kāinga Ora to assist New Zealanders reach their home ownership goals by bridging the gap if your deposit and home loan isn't quite enough to buy a home that meets your needs.
It involves Kāinga Ora serving as a third party equity provider to share ownership of a home with a household with the intention for the household to purchase that third party equity stake at a later date and graduate into full home ownership. Kāinga Ora will share ownership with you as co-owner on the title, but it won't feel very different as you are the majority homeowner and Kāinga Ora won't use or occupy your home.
The criteria for the First Home Partner programme include:
- Minimum 5 per cent deposit required
- Equity contribution determined by household/whānau deposit, and home loan
- Affordability assessment
- Maximum equity contribution of 25 per cent or $200,000 (whichever is lower)
- Nationwide
- Available once only
The scheme can be used for ‘off the plans’ and brand new homes. The partnership cannot be accessed to assist with the purchase of only land, and if you currently own or have an interest in land, even if there is no home currently on it you are still not eligible.
Some of New Zealand’s major banks can provide assistance to prospective purchasers to assess their eligibility. The First Home Partner programme sits alongside the First Home Grant offering that Kāinga Ora offers first home buyers. Once the home has been purchased under the First Home Partner Scheme, the household will partner with Kāinga Ora to develop a long-term plan to purchase the property outright within 15 years.
Juliet Lichtenstein, Project Sales Manager in the Residential Projects team at Colliers, says the First Home Partnership Scheme will make home ownership more accessible. “Saving for your first home is one of the hardest things you will ever do. Colliers is delighted to share a range of new homes that have been constructed by experienced developers such as the Templeton Group, Avant Group, and Lamont & Co. in a variety of suburbs across Auckland from Long Bay to Onehunga,” Lichtenstein says.
“These new homes have been approved by Kāinga Ora for the First Home Partner Scheme and include spacious one bedroom apartments, stylish two-bedroom apartments, or terrace homes near amenities with strong connections to transport links.”
Following the recent success of the first educational evening about the First Home Partner Scheme, Colliers is proud to present two further events that will be held at the Colliers head office in Level 23 of the HSBC Tower at 188 Quay Street on 17 November starting at 5pm.
“We look forward to meeting more people and walking them through this process to help them achieve their home ownership dream,” Lichtenstein says.
Register for the information seminar here
