Kiwibank is taking a lead in supporting first home buyers wanting to participate in the government’s KiwiBuild initiative.
Kiwibank Group Manager Marketing Mark Wilkshire said: “Kiwibank is really excited to make the dream of home ownership come true for more New Zealanders. We are putting Kiwibank out there as the first choice for KiwiBuild participants.”
Kiwibank will pre-approve customers for up to 90 percent of the value of a KiwiBuild home*, meaning participants would only need a 10 percent deposit on the new builds. It will also contribute $2,000 to moving or legal expenses.
“The government’s efforts to restore the Kiwi dream of home ownership is an aspiration Kiwibank can support. We know the response to KiwiBuild from the public has been enthusiastic with over 30,000 first-home buyers registering their interest in the first few weeks,” Mr Wilkshire said.
“Home ownership rates are now at the lowest level in over 60 years, there are not enough homes being built and not enough starter homes. First home buyers are struggling to get on the property ladder and KiwiBuild could help to address this issue.”
“Kiwibank economists believe New Zealand has a shortage of over 100,000 homes. Supply has not kept pace with demand. Demand is still growing and capacity constraints are being hit. Kiwibank supports New Zealand’s need for more affordable dwellings.
“There is an expectation that, as the largest New Zealand owned bank, we help as many first-home buyers as we can. KiwiBuild has potential to be a game changer for the residential housing sector and we are keen, as always to make a positive difference for our customers and the New Zealand economy,” Mr Wilkshire said.
“First home buyers may be aware of Loan to Value ratio (LVR) restrictions and many assume this means they need a 20 percent deposit. Unlike some other banks the minimum deposit for first home buyers at Kiwibank is only 10 percent.
“It is important that first home buyers do their homework on KiwiBuild properties and take their time to seek pre-approval. To begin with, there are limited homes available and they may not suit the needs of all first home buyers.
“Pre-approvals from banks need to be regularly reassessed to ensure that the lending remains affordable. First home buyers should be aware these will need to be regularly reviewed,” Mr Wilkshire concluded.
Find out more about KiwiBuild at mbie.govt.nz