The lowdown on KiwiBuild

KiwiBuild is certainly a hot topic at the moment among the media, politicians, and first home buyers. But what exactly is it, and could it be an opportunity to help you, or someone you know, into your first home?

What is KiwiBuild

KiwiBuild is a government programme designed to create 100,000 quality and affordable homes for first home buyers by 2028.  The government guarantees to purchase affordable homes at price caps (maximum $650,000), which encourages developers to build the affordable homes as they know they are already pre-sold. Take a look at what is currently available here.

Who is Kiwibuild for?

If you’re looking to buy your first home and you meet the eligibility criteria, then KiwiBuild could be for you.

To be eligible you need to be a first home buyer (or in a similar financial position as a first home buyer), a NZ citizen/Permanent Resident, and have an income of less than $120k if you’re single, or a combined income of less than $180k for couples. You must also intend to live and own the home for at least 3 years. As part of your pre-qualification application, you will also be required to have your funding approved by a bank.

Once your eligibility is confirmed and you are pre-qualified by your lender, you will go into a ballot for the KiwiBuild homes you have expressed interest in.

The good news is that if you qualify to go into the ballot for a KiwiBuild property, there is a good chance you could get an approval to purchase non-KiwiBuild properties too.

How we can help

Finding the best bank or lender to work with and obtaining a valid approval of finance can be complicated and time consuming. The ‘big four’ banks and some of the smaller players have come up with various special deals to entice KiwiBuild customers to borrow with them. Right now, we can get up to a $3,000 cash contribution, lending for up to 95% of the value of the home, and a preapproval that lasts for up to 12 months (which can be handy in a changing market). Some of these offers are also available for non-KiwiBuild properties. On the downside, lenders are charging interest rate premiums or additional fees for people with lower deposits.

As always, the package that is going to work best is going to come down to your individual circumstances. Come have a chat with us and let us do the work for you!


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