First home buyers are seeing Kainga Ora’s First Home Partner as a good way to get into a first home, but we’re hearing many people that find the process confusing.
This is very evident from comments and posts on New Zealand’s largest Facebook Group for first home buyers.
When we first had it explained to us it did seem a bit confusing too!
The process created by Kainga Ora made sense to them, and the process within the banks made sense to them; however it was all a bit disjointed and for many first home buyers they were left to navigate the whole process without having anyone to guide them.
To make it easier we have created our own guide for First Home Partner that includes a simple 4-step process to follow.
Mortgage Managers Help First Home Buyers
The team of mortgage advisers at Mortgage Managers have a good knowledge of Kainga Ora’s First Home Partner.
This is one of the shared ownership schemes that is available for people with as little as 5% deposit, making it an option for many first home buyers who otherwise would remain renting.
Until recently (August 2023) this had only been available to people that had a household income under $130,000 in the last 12-months, and only on brand new homes too.
This did not suit everyone, and often people were excluded:
- if the household income was over $130,000
- when the income meant they could not afford a new build in the area they need to buy
- Or, in many areas there are minimal new builds available
Kainga Ora has now increased the income cap to $150,000 which will mean more people are eligible, and has also opened First Home Partner for existing homes as well as still doing the new builds.
Effectively this means more choice and for more people.
Our 4-Step Process
When you download the free guide for First Home Partner you will see our simple 4-step process, and if you do things in this order it will all make a lot more sense.
The steps are:
- Initial Loan Assessment – you need to know that the bank will lend you the money needed to buy your first home so we will always suggest that we arrange an initial assessment. This is where we calculate the total loan that you can afford, and suggest any changes needed before we apply with the bank.
- First Home Partner – before finalising the loan application for the bank we need your “eligibility letter” which confirms that you are approved for the First Home Partner shared home ownership scheme, and what amount you pre approved for. The “eligibility letter” is valid for 6-months so best to get it now, and if needed you can apply again.
- Get Lending Pre-Approved – once you have the “eligibility letter” we can complete the application and get an approval with the bank. This will be a pre-approval and will always be subject to finding the right property to buy.
- Find Your New Home – often people have thought that they could never own their own home, but with the First Home Partner shared home ownership scheme it is a little easier as you are not having to pay for the whole amount all at once.
This is the basic order of what you need to do.
As mortgage advisers we can help answer your questions throughout the process too.
Now you can buy your first home with First Home Partner, and with the help of an experienced mortgage adviser that can show you how this all works to ensure that you get the best results without the stress.
