Current Status: Fully Subscribed
The most important fact for new buyers is that First Home Partner is fully subscribed. Kāinga Ora's scheme page now exists to assist existing customers, and no new applications are being accepted. The scheme was part of the Government's Progressive Home Ownership Fund, launched in October 2021, and it reached its funding allocation.
If you are already a First Home Partner customer, the rest of this page covers the mechanics that determine what your home costs you over the next fifteen years. If you are not, skip to the alternatives section at the end — the buy-back mechanics will not apply to you.
How the Scheme Worked
First Home Partner was a shared ownership scheme for first home buyers who could service a standard mortgage but could not save a deposit large enough for pre-approval. Kāinga Ora co-purchased a share of the home alongside you, which reduced the mortgage you needed and closed the deposit gap.
Two eligibility settings were in place at closure: the household income cap was $150,000 (raised from $130,000 in August 2023), and from that same date existing homes became eligible as well as new builds, giving buyers more choice. Intergenerational whānau of six or more people who normally live together could also apply.
How the Equity Buy-Back Is Priced
You buy Kāinga Ora's share back either as a single lump sum or in smaller payments that each meet a minimum purchase amount, commonly $1,000. Annual goals meetings with your Relationship Manager support that plan.
The pricing rule is the part that surprises people: the buy-back price is based on the home's value at the time you purchase the share, not the price you originally paid. If the home has risen 10% in value since purchase, the share costs 10% more.
| Scenario | Original | After 10% value rise |
|---|---|---|
| Home value | $700,000 | $770,000 |
| Kāinga Ora share (20%) | $140,000 | $154,000 to buy back |
| Your cost to reach 100% ownership | — | +$14,000 |
This is not a penalty — it is the arithmetic of buying equity at market value — but it means a rising market makes full ownership more expensive over time. Buying shares back earlier costs less if prices are climbing.
Selling While Kāinga Ora Still Owns a Share
Sale proceeds are split proportionally to the shares held. Kāinga Ora's own worked example: if it still owns 10% and the home sells for $800,000, it receives $80,000, and you receive the remainder net of the mortgage.
Three other conditions applied throughout the shared ownership period:
- Owner-occupier requirement. You must live in the home as your primary residence; it cannot be rented out or used as an investment.
- Further lending needs a request. Additional debt can affect your ability to buy the share, so Kāinga Ora asks for a further lending request with your adviser's supporting evidence.
- Renovations need prior approval for as long as Kāinga Ora remains a co-owner.
The stated aim is for you to own 100% as soon as you are financially able and within 15 years. After year 15, an annual administration fee can apply to cover Kāinga Ora's reasonable costs.
What to Use Instead in 2026
With First Home Partner closed and the First Home Grant gone, the deposit-gap options that remain are:
- The First Home Loan — 5% deposit instead of 20%. Income caps are $95,000 for a single buyer with no dependants and $150,000 combined for two or more buyers, with regional price caps.
- KiwiSaver first-home withdrawal — after three years of membership, no upper cap on your own and employer contributions. Typically $30,000–$60,000 after six to eight years.
- Low-deposit bank lending — since 1 December 2025, banks can write 25% of new owner-occupier lending above 80% LVR, up from 20%. New builds are exempt from LVR restrictions entirely.
- A gifted deposit — workable, but the lender will want a gift letter confirming the money is not a loan.
Combining KiwiSaver with the First Home Loan is how the majority of 2026 first-home buyers close their deposit gap, and on a median-priced home it requires about $38,500 of cash rather than $154,000.
Getting Advice Before You Commit
Shared equity is a long-term legal arrangement, and the decisions that matter — how fast to buy the share back, whether to make lump-sum or incremental purchases, and what happens if your circumstances change — depend on your own income trajectory and the local market. Get independent financial and legal advice before making commitments, and read the Shared Ownership Agreement carefully, including the renovation and further-lending clauses.
If you have a complaint or dispute about a decision under the scheme, ask for it in writing first. Written decisions can be escalated; verbal ones cannot.
Frequently Asked Questions
Can I apply for First Home Partner in 2026?
No. Kāinga Ora states that First Home Partner is fully subscribed and that the scheme is now assisting existing customers only. New applications are not being accepted. The First Home Loan and KiwiSaver first-home withdrawal remain open.
How is the First Home Partner buy-back price calculated?
The price is based on the value of the home at the time you purchase the share, not what you originally paid. If the property has risen 10% since purchase, Kāinga Ora's share costs 10% more to buy back. You can pay in one lump sum or in smaller payments meeting a minimum amount, commonly $1,000.
What happens if I sell while Kāinga Ora owns part of my home?
Sale proceeds are split proportionally to the shares held. If Kāinga Ora still owns 10% and the home sells for $800,000, it receives $80,000 and you receive the balance net of the mortgage. You must also have lived in the home as your primary residence throughout.
What alternatives are there now that First Home Partner is closed?
The First Home Loan (5% deposit for buyers within its income and price caps), KiwiSaver first-home withdrawal after three years of membership, low-deposit bank lending — banks can now write 25% of owner-occupier lending above 80% LVR — and a gifted deposit supported by a gift letter.