Can I get Kainga Ora Kiwisaver Withdrawal, First Home Loan or First Home Grant as a previous home owner?
Disclaimer: The below guide is general in nature and do seek individual financial advice to see how this applies to your situation. Our experienced advisers are on hand to help at no cost to you (T’s and C’s apply)
Although Kainga Ora’s products are intended to help those get into their first homes, they do have a carve out for what they call ‘second chance buyers’.
I have inherited a home or some land, do I still count as a first home buyer or second chance buyer?
Kiwis who currently have their name on the title of any property (excluding Maori Land) will not be eligible for this, but may become eligible for this once they sell their homes, depending on their financial situation at the time.
What are the criteria for being a second chance buyer?
No current ownership of any property in NZ or overseas (excluding Maori land)
Your assets must be no more than 20% of the house price cap for existing property in your region
You must not have accessed the First Home Loan scheme or previously withdrawn your Kiwisaver for the purchase of a home
Note that these schemes have their own criteria, these are just the requirements for being considered as a second chance buyer,
How do Kainga Ora determine my assets against the house price cap?
Ok, so this gets a little complex and it can be worth talking to your adviser for clarification.
Realisable Assets
Add up all the below that you own.
Cash or savings. Includes term deposits.
Shares, stocks or bonds
Boats or Caravans worth over $5,000
Excess vehicles. An individual can be expected to own one car, a couple two. Anything above this may be counted towards your realisable assets.
Deposit for a house already paid to the vendor
Kiwisaver is not counted as a realisable asset.
House Price Caps
Find out the house price cap for an existing home in your region. We then take 20% of this as our maximum allowed realisable assets in order to still be eligible for the scheme.
EG: The Wellington region house price cap for an existing house is $750,000 (at time of writing). 20% of this is $150,000.
This means that we must have no more than $150,000 in realisable assets.
Example
Let’s use Jim as our example. Jim lives in Wellington.
Jim owned a property in a previous relationship. Due to the separation, they sold this property and each took the proceeds from selling.
After paying off the mortgage and other legal costs, Jim was left with $100,000 in cash.
He has $50,000 in Kiwisaver.
He has 2 cars worth $10,000 each
He has other savings in a term deposit of $12,000.
Therefore, Jim’s realisable assets are
$100,000 - Cash from sale of home
$10,000 - Extra car
$12,000 - Term deposit
$122,000 - total realisable assets.
Since the house price cap is $750,000 and 20% of this is $150,000, Jim is under the limit for realisable assets as he has $122,000. He would likely be eligible as a second chance buyer.
Note that we did not include one of his cars or his Kiwisaver as these are not counted as realisable assets.
If you have any doubts on whether you would qualify, do speak to one of our advisers.
How do I apply?
