Bank of New Zealand (BNZ) has welcomed the First Home Partner shared ownership initiative announced today by Te Tuapapa Kura Kāinga/Ministry of Housing and Urban Development and Kāinga Ora – Homes and Communities.
BNZ is one of the two founding partner banks for the scheme and will be accepting applications for home loans from customers with First Home Partner support.
BNZ Acting Executive, Customer, Products and Services, Karna Luke, says, “Every year we help thousands of New Zealanders into their first homes and are pleased to support the First Home Partner initiative to make it easier for more first home buyers to get into the market.
“First Home Partner is a great initiative to help make owning your first home a reality for more people. The shared ownership scheme will be especially helpful for those facing challenges with getting a deposit together.
The scheme sees Kāinga Ora take an equity share in ownership of a new home with the new household, which the household then buys out over time. Kāinga Ora will typically contribute equity up to the value of 15% of the purchase price, up to a maximum of 25% or $200,000, while BNZ will provide customers the rest of the financing of the purchase price.
BNZ customers wanting to purchase a home under the scheme will need to seek approval from Kāinga Ora first and then submit a home loan application with BNZ.