Getting into your first home may be closer than you think
Kianga Ora is working with first home buyers to help them on the property ladder & into their own home. We have broken down the options available and how you could be getting into your brand new home sooner than you think
First Home Grant
If you have been contributing to KiwiSaver for atleast 3 years, you may qualify for a First Home Grant, and the good news is if you are building or buying brand new, you qualify for double the amount of an exisiting home.
You can claim $2000 for every year you have been contributing to KiwiSaver up to a maximum of $10,000 for individuals or $20,000 for couples
There are a few T&C's;
- You need to be over 18
- Earn less than $95,000 per year for individuals or $150,000 per year for coulples
- Live in the property for 6 months
- The property you are buying must fall under the price cap (Auckland is $875,000, for a full list of price caps by region visit www.kiangaora.govt.nz)
- Prove that you have 5% deposit saved. This can come from savings, KiwiSaver or been gifted by a family member
First Home Partner
Kainga Ora also offers a First Home Partner option that helps bridge the gap if your deposit & home loan aren't quite enough to buy a home. It's a shared ownership scheme, meaning you initially own the home with Kianga Ora. You are the majority owner & occupier of the home, and you buy out the Kainga Ora share over time.
The amount that they will lend varies depending on your deposit & how much you can borrow from your lender but there is a cap of 25% of the home value or $200,000, whichever is the lower amount
Once again there are a few T&C's
- You will need to meet the First Home Partner eligibility criteria
- You have to commit to living in the house as your primary residence for atleast 3 years
- You need to do your best to pay back Kainga Ora in 15 years & must have paid back the full amount in 25 years
- You will need to seek permission of Kainga Ora to do any alterations to the home or before you sell it
The Kainga Ora wesite is a wealth of information & & has all of the links to see if you qualify. Click here to find out more.
Disclaimer: Frame Homes is not qualified to give financial or lending advice. The intention of this article is to educate our clients with the options currently on offer to them. Please consult your lending institution or Kainga Ora for up to date advice.