They were the first people in Tairāwhiti to use the scheme
The first people from Tairāwhiti to utilize the First Home Partner scheme that Kāinga Ora, a crown agency providing housing for New Zealanders, were a young couple expecting their second child.
“The couple started looking to buy a home when they were expecting their second child. They were in KiwiSaver and were eligible for Kāinga Ora’s First Home Loan and First Home Grant,” said Theo Akroyd, Kāinga Ora’s stakeholder relationship manager.
“After getting pre-approval for a small bank loan they started looking for something to buy. They looked at a couple of homes in Gisborne but the only things in their price bracket needed a lot of work,” Akroyd said.
“They couldn’t really afford to buy the house, let alone get the holes fixed. This a situation many of our people find themselves in.”
Akroyd said that the couple eventually found a modern-looking house close to the couple’s marae with three bedrooms along with a large deck and a spot for a big vegetable garden.
“After struggling for so long to find somewhere suitable to bring up their family, they were determined to buy this house,” he said.
“They looked into what other assistance would be available and found out about the First Home Partner scheme. That's when I met them.”
The First Home Partner scheme is a shared homeownership scheme designed to help bridge the gap for people buying a house for the first time without enough deposit and home loan to purchase a property.
Find out how much money do you need to buy a house in NZ here.
Those eligible for the scheme will purchase a house together with the agency to help with the deposit. While the buyer is considered to be the majority homeowner and occupier, the agency will own a share in the home, which the buyer will buy out over time in order to gain full ownership.
The agency will contribute a maximum of 25% or $200,000, whichever is lower, to the home purchase. Until recently, homes that will be purchased were required to be newly built or purchased off of the plan.
Eligible applicants are now able to buy currently existing homes as well, and the household income cap was now increased from $130,000 to $150,000.
“People who want to get into their first home need to start reaching out for information and support. Working with local Kāinga Ora staff, a mortgage broker, real estate agents and a lawyer all helped the couple make their dream a reality,” Akroyd said.
