Aera introduced us to the Ownership Accelerator as a groundbreaking co-ownership product which was on track to launch as soon as the bank support was locked in, but unfortunately despite them receiving positive feedback and indications from the banks that they were ready to proceed when Aera needed to go live the major banks and lenders were unwilling to step up and partner with them.
As Aera have said, they have been 💯% ready and willing to step in to help Kiwis without the bank of ‘Mum and Dad’ and I genuinely believe they were going to be another good alternative.
However, without a mainstream lender to provide the rest of the financing in partnership with Aera they can’t move forward with the scale that they need, and while they say they will keep pushing the banks in 2024 for now sadly it means the Ownership Accelerator is going to remain unavailable.
Let’s hope that the attitude of the banks change and they will look to support these types of initiatives in the future.
So What Other Options Are There?
So as one door closes, others open … and we are always on the lookout for options that help first home buyers.
It’s also important to understand that your first home is not always going to be your forever home, and the way that you finance the purchase of your first home is often a stepping stone too.
As mortgage advisers we are always aiming to make sure that you have the best options so even if you need to pay a low equity fee / margin or the higher interest rates and fees with non-bank lenders then consider this as temporary and a way to get into home ownership.
The Options Include:
- First Home Loans scheme – this is the Government backed low deposit scheme for first home buyers. It’s managed by Kainga Ora (Housing New Zealand) and while the current rules may exclude you, it’s always worth reviewing and we are also hopeful that the rules might become more useful too.
- New Builds – these are exemption from the rules as The Reserve Bank want to encourage building of new homes to counter the housing shortage mentioned. Of course there are not new builds available everywhere, but recently we have seen some builders selling new homes at good discounts so this is always worth considering.
- Non-Banks – the restrictions imposed by The Reserve Bank apply to banks, not the non-bank lenders and so some of these are able to offer some special options for low deposits, and some allow 2nd mortgages too.
- Co-Ownership – is still a popular way to buy a home with lower deposits if your income or outgoings are restricting what you can buy today. There is one less option than we hoped there would be, but it might still be the best option for buying your first home in 2024.
Get More Information
We know that most first home buyers have a few hurdles to overcome, and that’s where our team can help. We love helping first home buyers and understand how to identify and resolve those issues that often stop Kiwis from buying a home.
Please complete the form below and we will send you more information.
It does not matter where in New Zealand you are – we are able to help you wherever you are and wherever you want to buy.
We also have access to most banks and lenders, and are always looking for updates and new options. That’s why we were one of the first to get involved with the Aera Ownership Accelerator and will be why we will be the first (or one of the first) to know about any other new options too.
Our team of mortgage advisers are waiting to help.
