Buying a home
Once you understand your budget and how much you may be able to borrow to purchase a new home, it’s time to find the right home that meets your needs.
Understanding your budget
Creating a budget will help you understand the type, size and location of the new home you can afford, set savings goals, understand your living expenses and give you an idea of how much you need to borrow. You’ll need to know:
- Your household income and living expenses
- How much you can contribute to the deposit
- What home loan repayments you can afford
Kāinga Ora will confirm exactly how much we will contribute towards purchasing a home with you once you have received and shared your pre-approved home loan from a participating bank with us.
Homes eligible for First Home Partner
Homes eligible for First Home Partner must be:
- a ‘new’ home, which means that the home is a new build that has not been previously owned (other than by the developer or builder), and has received a Code Compliance Certificate within the previous 12 months; or
a home off the plan which means that you are purchasing a new home before construction has been completed
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
- your primary place of residence for at least 3 years.
If your personal circumstances change that require you to move or sell your home within this 3-year period (e.g. a change in your employment) then you will need to discuss this with Kāinga Ora.
As part of your application, we will assess your circumstances and areas you are interested in buying, and provide guidance to help you find a suitable home for the needs of your household. Once you have identified an eligible property that you can afford, you will need to contact us to confirm the property satisfies the conditions outlined in your Commitment Agreement and begin the process of co-purchasing the home.
Buying a home
If the home you are interested in purchasing satisfies the conditions in your Commitment Agreement, we will provide you with an Approval Letter for you to give to your chosen participating bank, and a Shared Ownership Agreement that governs the relationship with Kāinga Ora for the period of shared ownership.
You will also be provided with a Sale and Purchase Agreement by the seller of the home.
The Approval Letter confirms that the home you are interested in purchasing satisfies the conditions of co-ownership with Kāinga Ora set out in your Commitment Agreement, and the final equity amount that we will contribute towards purchasing the home with you. Your chosen bank will request this as part of finalizing your home loan.
Shared Ownership Agreement
The Shared Ownership Agreement is an agreement between you and Kāinga Ora, and is a mandatory part of purchasing a home with First Home Partner. It outlines the details of how we will share ownership of the home and includes:
- the rights and responsibilities of both you, as the majority homeowner, and Kāinga Ora as a tenant in common co-owner
- your obligation to do your best to buy the share in the home owned by Kāinga Ora within 15 years of your settlement date
- your responsibilities to upkeep and maintain the home
- requirements to seek prior approval from Kāinga Ora for any improvements or renovations to the home
- the process for obtaining valuations, selling the property, and responsibility for any costs incurred
- when the agreement and relationship with Kāinga Ora will end.
Sale and Purchase Agreement
A Sale and Purchase Agreement is a contract between the buyer and seller of a home. It outlines what will happen, and when, and sets out all the agreed terms and conditions of purchase. You will need to provide a signed copy of your Sale and Purchase Agreement to us as part of the co-purchasing process.
You will need to provide copies these signed documents back to us at least 10 working days before your date of settlement. If we do not receive the signed documents within this timeframe, it may result in our share of equity being delayed and not paid out in time for settlement.
If you have questions about buying a home, get in touch with your Kāinga Ora Relationship Manager, or you can:
- Phone us on 0508 935 266
- Email us at firstname.lastname@example.org
Page updated: 5 October 2021