Navigating Home Ownership
The First Home Grant is Gone: What Help is Available for First-Time Home Buyers?
With the recent discontinuation of the First Home Grant, many prospective first-time home buyers are left wondering how to accumulate enough for a deposit. While this change might seem daunting, there are still several effective strategies and programs available to support you on your journey to home ownership. Let's dive into some of the key options you can explore:
Shared Equity/Ownership
Shared equity arrangements are gaining popularity in New Zealand as a viable pathway to home ownership. This option involves partnering with a third party, such as the government, a council, or iwi, to purchase a home. The third party contributes a portion of the home’s value, and over time, you can buy out their share. This flexible approach helps reduce the initial financial burden, making it easier for you to step onto the property ladder.
Family Equity Loans
Family support can play a crucial role in achieving your home ownership goals. A family equity loan involves two separate loans: one for the deposit, which is co-signed by you and a family member, and another for the remaining balance, solely in your name. This arrangement can ease the financial strain by spreading the burden and facilitating quicker access to your first home.
Kāinga Ora First Home Loan
The Kāinga Ora First Home Loan is a government-backed initiative designed to make borrowing easier for first-time buyers. Unlike traditional mortgages that typically require a 20% deposit, the Kāinga Ora loan requires only a 5% deposit. This significantly lowers the entry barrier, allowing more people to secure a mortgage and purchase their first home.
KiwiSaver Withdrawal
If you have been contributing to KiwiSaver for at least three years, you can leverage your savings to boost your home deposit. Under this scheme, you are allowed to withdraw almost all your KiwiSaver savings, except for $1000 which must remain in the account. This can provide a substantial increase to your deposit fund, bringing you closer to owning your first home.
Navigating Your Path to Home Ownership
While the removal of the First Home Grant is a significant change, the options outlined above demonstrate that there are still multiple avenues to help you build your deposit and purchase your first home. It's essential to explore these alternatives and find the one that best suits your financial situation and long-term goals.
If you have any questions or need personalized advice on navigating these options, don't hesitate to reach out. Our team is here to help you explore your options and find the best path to build your deposit and own your first home.
Contact us today to start your journey to home ownership. Together, we can make your dream of owning a home a reality.
Julia@brokerintel.net
020 41560804
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