First Home Partner - Kainga Ora

If you've added up your total deposit, and it simply isn't enough to get you the property you want, OR it leaves you with a loan that is too high to meet repayments you're comfortable with - there may be other options available for you with Kainga Ora's First Home Partner scheme.

"First Home Partner" (FHP) is a scheme set-up by Kainga Ora that allows shared ownership of properties for First Home Buyers, to purchase a home with Kainga Ora.

The first step would be finding out if you are eligible, and the criteria is similar (although there are some slight differences) to other Kainga Ora Schemes:

Eligibility Criteria:

You'll need to be eligible to meet the requirements of the participating banks. We can run some initial calculations for you on this - to determine if you'd meet the standard bank criteria to be able to get the loan (assuming you're approved for FHP too), so get in touch here to see how we can help.

In addition you'll also need to contribute a minimum of 5% of the purchase price of the home you're interested in. Of course the higher your deposit, the better. Other eligibility criteria for the FHP are outlined below:

be over 18 years old
be a New Zealand citizen, permanent resident, or a 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
have a total household income before tax of no more than $150,000
have a good credit rating (subject to a credit report)
be a first home buyer
not previously received shared ownership support from Kāinga Ora

You also must be buying this home with the intention to live in it as a primary place of residence for at least 3 years from your settlement date.

Deposit Criteria:

The 5% referred to above must be made up of; your own personal savings, your KiwiSaver funds (that are eligible for withdrawal), a First Home Grant (if eligible), and gifts (if applicable) from family members. For more information around KiwiSaver and First Home Grants, see our blog here.

How to Apply:

If you wish to apply for FHP, use the link here. This can take a bit of time to formally get approved, so you're best to handle this early - along with any other applications such as KiwiSaver withdrawal and First Home Grants, if you require these.

Once you're Approved for FHP:

At this stage we would submit a formal loan application to a participating bank and work on getting you the finance approval to match your budget.

Other FAQs:

Are there house price caps? No. The value is determined by your deposit, the FHP contribution and amount a bank will lend you.

How much equity can I get from FHP? Each application is case-by-case, but the maximum contribution Kainga Ora will make is 25% of the purchase price, or $200,000, whichever is lower.

When can I buy Kainga Ora's share out? You must do your best to purchase the share of the home purchased by Kainga Ora within the first 15 years of ownership, and must have purchased the share in full by the 25th anniversary from the date of settlement on the home. However, you can begin buying the share from Kainga Ora FHP as early as you want (at minimum $1k increments, or one lump sum). When you purchase the share owned by Kainga Ora, you do so at the then current market value.

Can I buy any home with FHP?
Homes eligible for First Home Partner must be:
- a ‘brand new’ build - this means the home is a new build that has not been previously occupied (other than by the developer or builder), and has received a Code Compliance Certificate within the previous 12 months; or
- purchased 'off the plan' - this means that you are purchasing a new home before construction is complete. The house and land must be purchased together on a single Sale and Purchase Agreement. First Home Partner does not support scheduler payments or construction loans
- an existing home with minimal house maintenance under $5,000.00,
- habitable from the date of settlement or from the relevant completion date once the Code Compliance Certificate/title has been issued
- assessed in accordance with the bank’s own credit standards

Can I use FHP to purchase land to build a house on? No. First Home Partner is designed to support the purchase of homes not land

While the above are helpful, these aren't a complete set of notes for everything to consider, so legal advice is something we'd recommend. For more information - see further information on the Kainga Ora website here.

If you're looking at purchasing your First Home, and want to know what's possible for you and what options you've got available, we'd love to help.