Getting a home head start

It’s good news if you want to buy your first home with a friend or family member.

From October 1, you and your prospective co-owner are able to apply for a HomeStart grant of up to $10,000.

If you have been in a KiwiSaver scheme for three years or more, making regular contributions, you can apply for a grant through Housing New Zealand.

In addition, if you’re buying in partnership with others, and they meet the criteria, they too can apply for a grant.

If you’re buying an existing home, you can receive $1000 for each of the three or more years you’ve been paying into your KiwiSaver.

This is capped at $5000 if you’ve been a KiwiSaver member for more than five years.

Your property partner can also apply for a grant, so you can pool the grants to provide you with a deposit for your first home, capped at a total of $10,000 for an existing property.

The incentive is doubled if you decide to buy a new home or land, with $2000 for each year in KiwiSaver, capped at $10,000.

This applies to other coowners as well.

Again, the combined grants are capped at $20,000 for a new home or land for a new home.

Housing New Zealand administers the process, and they strongly urge people wanting to apply for the HomeStart grant to apply for pre-approval.

This is an excellent recommendation because once you have approval, you will have certainty about your financial position before you start your property search.

Pre-approvals are valid for six months.

This story was originally published by First National Marlborough and has been republished with permission.

RICKY WILSON/ STUFF Joining up with family and friends can get you a home loan head start through KiwiSaver.