First Home Partner

What is First Home Partner?

First Home Partner is a shared equity scheme run by Kāinga Ora (Housing NZ). Instead of lending you money, Kāinga Ora buys a share of your first home — up to 25% (or up to $200,000). This reduces the amount you need to borrow from the bank.

How It Works

1. You buy a home on the open market
2. Kāinga Ora contributes up to 25% of the purchase price (capped at $200,000)
3. Kāinga Ora is registered on the title as a co-owner
4. You pay no rent or interest on Kāinga Ora's share
5. When you sell, Kāinga Ora gets back their share of the sale price (proportionally)

Eligibility Criteria

• First home buyer — you have never owned a home before (with limited exceptions)
• KiwiSaver member — must have contributed for at least 3 years
• Income cap: $95,000 for one person, $150,000 for two or more buyers
• Minimum deposit: At least 5% of the purchase price from your own savings
• Residency: Must be a NZ citizen or permanent resident

House Price Caps

Same regional caps as the First Home Grant apply, for example:

• Auckland: $875,000 (existing)
• Wellington: $750,000 (existing)
• Christchurch: $600,000 (existing)
• Tauranga: $750,000 (existing)

Pros and Cons

Advantages

• No interest or rent on Kāinga Ora's share
• Reduces your deposit gap significantly
• Can be combined with First Home Grant and KiwiSaver withdrawal
• You can buy Kāinga Ora's share later (called "buying out")

Disadvantages

• Kāinga Ora shares in the capital gains when you sell
• Limited to homes under regional price caps
• Must get pre-approval from Kāinga Ora before making an offer
• Not all banks accept shared equity arrangements

How to Apply

1. Check your eligibility with Kāinga Ora
2. Get pre-approval — this involves a financial assessment
3. Find a property within the price cap
4. Make an offer with a condition that Kāinga Ora funding is confirmed
5. Settlement — your solicitor handles the shared ownership registration

Buying Out Kāinga Ora

You can purchase Kāinga Ora's share at any time, or it's repaid proportionally when you sell. The buy-out price is based on the current market value, so you share in both gains and losses.