Key Features of the Loan
Low Deposit: The most significant benefit is the ability to buy a home with a deposit of as little as 5%, rather than the standard 20% required by most banks.
No House Price Caps: The scheme no longer has a maximum house price limit, giving you more flexibility in your search.
Lender’s Mortgage Insurance: There is a one-off Lenders’ Mortgage Insurance premium of 1.2% of the loan amount, which can be added to the total loan.
KiwiSaver Integration: You can use your KiwiSaver funds to contribute to your 5% deposit, provided you meet the KiwiSaver First-Home Withdrawal criteria.
Who Can Qualify?
To be eligible for a Kāinga Ora First Home Loan, you must meet a specific set of criteria. We can help you navigate this process to see if you qualify. Here are the key requirements:
1. You are a First-Home Buyer (or in a similar financial position) The loan is primarily for first-time buyers. However, you may also be eligible if you have previously owned a home but are now in a similar financial position to a first-home buyer (e.g., due to divorce or a significant change in circumstances).
2. You Meet the Income Caps Your before-tax income for the last 12 months must not exceed:
$95,000 for an individual buyer without dependants.
$150,000 for an individual buyer with one or more dependants.
$150,000 (combined) for two or more buyers.
3. You Have a Minimum Deposit of 5% You must have at least 5% of the purchase price as a deposit. This can be made up of your own savings, a KiwiSaver First-Home Withdrawal, a gift from a family member, or a combination of these.
4. You Plan to Live in the Home The loan is for buying a primary place of residence only. It cannot be used to purchase a rental or investment property.
The Home Loan Hub Can Help
While the Kāinga Ora criteria are set by the government, each participating lender has its own additional lending criteria. This is where we come in. As your trusted mortgage advisers, we will:
Check Your Eligibility: We will assess your personal situation against all the criteria to confirm if you qualify for the loan.
Find the Right Lender: We have relationships with all the participating banks and will match you with the one whose lending criteria best fits your circumstances.
Simplify the Process: We’ll handle all the paperwork and guide you through every step of the application, from pre-approval to settlement.
Ready to see if you qualify?