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:
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:
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.
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.
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.
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.
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.
Get in touch with us here to find out what's possible for you!