First-home buyers need to check out government assistance

“Kiwis considering buying need to know that different government assistance is available to get them on the property ladder. It could make all the difference, but many don’t even know these opportunities exist,” says Tim Kearins, Owner of Century 21 New Zealand.

Government assistance schemes includes First Home Grants, First Home Loans, and First Home Partner.

First Home Partner is a shared ownership scheme to help aspiring first-home buyers purchase a home together with Kāinga Ora. First Home Partner is aimed at those whose deposit and home loan aren’t quite enough to buy a home that meets their needs.

“For example, a couple secures $620,000 for a $730,000 purchase, and Kāinga Ora stumps up with the $110,000 difference. Both parties then enter a shared ownership agreement. It’s an attractive scheme that’s helping a lot into their first home and well worth investigating,” says Julius Capilitan, Managing Director of Century 21 Financial.

Last year to better reflect market prices, the Government increased the house price caps for the First Home Grant and entirely removed house price caps from the First Home Loan.

First Home Grants give eligible first-home buyers up to $20,000 for a deposit. First Home Loans allow eligible buyers to purchase a home with a five percent deposit with no price caps.

“For sure it’s harder for buyers with less than a 20% deposit to get finance due to the Reserve Bank’s Loan-To-Value Ratio (LVRs) restrictions, but these schemes make it much more possible to secure a mortgage. My advice is talk to a broker, but first get on the Kāinga Ora website to understand their products better and see if you’re eligible,” says Mr Capilitan.

Julius Capilitan says most buyers hungry enough will get finance and will get into a property.

“We’re still seeing plenty of approvals from banks, despite what you may hear. There are always exemptions to the rules and while it’s never easy, it’s certainly not getting harder,” he says.

Mr Kearins says given the current cost of living crisis, coming up with a sufficient deposit is often the biggest hurdle. He says the Government needs to better promote its first-home buyer assistance.

“There are no silver bullets to home ownership, but these schemes certainly help many young Kiwis get over the line. Given the opportunities for buyers out there, this winter may prove to be the best time in a long time to get on the property ladder,” says Tim Kearins. www.century21.co.nz

Tim Kearins, Century 21 New Zealand – (0274) 495-547

Julius Capilitan, Managing Director, Century 21 Financial NZ –(027) 2777-352