First Home Partner
If your deposit and home loan aren’t enough to buy a home, First Home Partner could help to bridge the gap. You apply for First Home Partner through Kāinga Ora.
First Home Partner is a shared ownership scheme to help aspiring first home buyers whose deposit and home loan aren’t quite enough to buy a home that meets their needs, purchase a home together with Kāinga Ora.
If this sounds like you, First Home Partner may be able to help you get your foot on the property ladder.
What is Shared Ownership?
Shared ownership means that you initially share ownership of the home with a third party who purchases the home with you (in this case Kāinga Ora). You are the majority homeowner and occupier, but we will own a share in the home, that you will buy out over time.
The make-up of shared ownership will be determined by several factors, including:
- How much of a deposit you have
- How much a participating lender is willing to lend you
- How much contribution Kāinga Ora will make towards purchasing the home with you.
For example, you may have saved 10% of the purchase price of a home and a participating bank is willing to lend you 75%. Kāinga Ora then contributes 15% to purchase the home with you in return for a 15% share of ownership in the home.
5 easy steps to home ownership with First Home Partner
If you think First Home Partner might be for you, follow these steps to see how you can start your journey towards home ownership.
- Check you are eligible for First Home Partner
- Submit your First Home Partner application online
- Getting home loan pre-approval
- Finding and buying a home
- Become a full home owner
How much equity can Kāinga Ora contribute?
Applicants for First Home Partner will be assessed on a case-by-case basis. The maximum contribution Kāinga Ora will make towards a home purchase is 25% or $200,000 – whichever is lower.
You will need to meet the lending requirements of a participating bank to receive a home loan and be able to contribute a minimum of 5% of the purchase price of the home you are interested in buying
How is buying a home with First Home Partner different?
Shared ownership won’t feel very different from full home ownership from day-to- day. You are the majority homeowner, and Kāinga Ora will not use or occupy your home. However, there are some important differences you should consider
- you will need to meet the First Home Partner eligibility criteria
- Kāinga Ora will share ownership of the home with you as co-owner on the title
- the shared ownership relationship between you and Kāinga Ora is governed by a Shared Ownership Agreement
- you commit to living in the home as your primary place of residence for at least three years from settlement
- you meet annually with a Kāinga Ora Relationship Manager to review the financial circumstances of your household and work towards the goal of achieving full home ownership
- you will need to do your best to purchase the share of the home owned by Kāinga 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
- you will need to seek permission from Kāinga Ora before making improvements or renovations, or if you want to sell your home.
If you have questions before you apply, you can:
- Phone us on 0508 935 266
- Email us at firstname.lastname@example.org
Page updated: 2 November 2021