BNZ shared-equity scheme aimed at first-home buyers

Bank of New Zealand is preparing to launch a scheme that will help first-home buyers into houses – in return for a slice of the equity. The shared ownership programme, involving an as-yet-unnamed third party, will launch as a pilot scheme in Auckland next year. If people identify a house they want to buy, they will be apply to the bank for a mortgage for part of the price. ‘‘It’s a commercial take on the Bank of Mum and Dad for new homeowners,’’ BNZ chief customer officer Paul Carter said. There will be catches to understand – for example, if a property decreased in value before it was sold, the loss would be shared across both parties, a bank spokesman said. Value increases would be shared in the same way.