First Home Partner

First Home Partner in 2026: What's Changed

First Home Partner remains one of the strongest supports for buyers who cannot reach a 20% deposit. Kāinga Ora co-invests an equity share in your first home — historically up to 25% — which reduces the mortgage you need, and you pay no rent or interest on their share. You can buy the share back later, in full or in stages.

The income and house price caps are reviewed regularly and were updated in 2025, so the figures quoted in older guides (including some figures on this page) may be out of date. Always confirm current caps on the Kāinga Ora website before you apply — a pre-approval from Kāinga Ora is required before you make an offer anyway.

First Home Partner vs First Home Loan

• First Home Partner: shared equity — Kāinga Ora owns a slice of the home; you need a smaller mortgage; you share future capital gains with Kāinga Ora.
• First Home Loan: a low-deposit mortgage with a 5% deposit and bank-comparable interest rates, backed by Kāinga Ora's guarantee (with a one-off premium).
• Which suits you: if you can service a mortgage but lack deposit, First Home Partner reduces the loan size; if you have a small deposit but strong income, the First Home Loan may be simpler.
• Combining: both can be used alongside a KiwiSaver first-home withdrawal, and for new builds LVR exemptions already allow low deposits — check with Kāinga Ora which combination applies to you.

How Equity Buy-Back Works

Because Kāinga Ora's share is a percentage of the property's market value, the cost to buy it back rises if prices rise. If they hold 10% of a home bought at $700,000 and you buy them out when it is worth $770,000, you pay $77,000 — 10% of the current value, not the original $70,000.

You are never forced to buy back: the share is simply repaid proportionally when you sell. Many buyers buy back in stages as their income grows, and your Kāinga Ora Relationship Manager can set up a plan. Factor this future cost into your long-term budget — it is effectively a deferred payment, not free money.

Applying in 2026: Step by Step

• Check eligibility and current income/price caps on the Kāinga Ora website (income and residency criteria apply).
• Get pre-approval from Kāinga Ora — a financial assessment that confirms how much equity they will contribute.
• Find a property within the price cap and make an offer with a condition that First Home Partner funding is confirmed.
• Settlement: your solicitor registers Kāinga Ora as co-owner on the title.
• Plan the buy-back: request valuations through the First Home Partner portal and purchase shares in stages if you prefer.

First Home Partner Is Fully Subscribed

This is the single most important thing to know before reading the rest of this page. Kāinga Ora's own scheme page now states plainly that First Home Partner is fully subscribed, and that the page exists to assist existing customers. New applications are not being accepted. The scheme reached its funding allocation, and the remaining resource is committed to people already inside it.

How the Equity Buy-Back Works

You buy Kāinga Ora's share back in one of two ways, and both are priced off the current market value at the time of purchase, not the price you originally paid:

• A single lump sum, when you can fund it.
• Smaller payments over time, each meeting a minimum purchase amount — commonly $1,000 — supported by annual goals meetings with your Kāinga Ora Relationship Manager.

The pricing rule is the part people underestimate. If your home has risen 10% in value since purchase, Kāinga Ora's share costs 10% more to buy back. On a home that rose from $700,000 to $770,000 with a 20% Kāinga Ora share, the buy-back price moves from $140,000 to $154,000 — you are buying the equity at today's value, not yesterday's.

What Happens If You Sell While Kāinga Ora Still Owns a Share

Proceeds are split proportionally to the shares held. Kāinga Ora gives a worked example on its own site: if it still owns 10% and the home sells for $800,000, it receives $80,000. Two other conditions are worth knowing:

• You must live in the home as your primary residence while Kāinga Ora holds shares. It is not a rental or a flip.
• Further lending needs approval. Additional debt can affect your ability to buy back the share, so Kāinga Ora asks for a further lending request with supporting evidence.
• Renovations need prior approval while it remains a co-owner.

What to Do Instead If You Are Not Already In

With First Home Partner closed, the realistic 2026 alternatives for a deposit shortfall are:

• The First Home Loan — 5% deposit, income caps $95,000 (single, no dependants) or $150,000 (two or more buyers).