Co-Ownership for First Home Buyers: What to Consider

Thinking about buying a home but struggling to save up a deposit for NZ home loans? Mortgage Masters is here to help shine a light on all your financial options for purchasing a home or buying land NZ. This includes co-ownership, an exciting option for first home buyers who can’t afford a deposit for a property on their own. Let’s go through this process and the pros and cons you should be aware of when considering co-ownership.

YouOwn Co-Ownership New Zealand

YouOwn is a co-ownership program where instead of a traditional 80-20 split between your bank loan and deposit, you put down a smaller percentage while YouOwn helps with the rest. For example, you can buy a portion of the property with a 5% deposit, and YouOwn contributes 15% equity in a shared ownership model. You pay a charge on YouOwn’s portion and after five years, you can purchase the share when it works for you. With this co-ownership option, you have all the rights as homeowners so you can renovate or just enjoy the house as is. You will always be the majority owner, with YouOwn playing a passive role. There is no set timeframe for you to become full owner, as YouOwn will own the property with you until you buy the share or sell the house.

Co-Ownership First Home Buyer Eligibility

While there are grants to buy first home, not everyone is eligible, and rising costs of living can make it difficult for many New Zealanders to achieve their goals of owning property. That’s where Mortgage Masters comes in, connecting prospective buyers with programs that make their dreams a reality. We are pleased to recommend YouOwn co-ownership with those that meet the first home buyer eligibility requirements. YouOwn is the first privately funded co-ownership program in New Zealand, and it’s open to NZ citizens and permanent residents.

Here are the other eligibility requirements to consider:

  • Household income of $110 000+ (Bay of Plenty), $130 000+ (Auckland)
  • Less than $15 000 in debt and clean credit history
  • 5% deposit from savings and or Kiwisaver
  • 3 years contributing to Kiwisaver
  • Buying the property to live in

How to Buy Your First House Through Co-Ownership New Zealand

In terms of how to buy your first house with YouOwn co-ownership, you must make sure your financial situation meets the criteria, and that the property you purchase is also eligible for funding. Generally, the program is for new houses constructed by recognised builders, although well-built existing homes and apartments may also qualify. An independent registered valuer will need to complete a market valuation for the lender. The financial advisers at Mortgage Masters can go through this process and other grants to buy first home in more detail, too.

Explore Co-Ownership Home Loans in New Zealand

Our independent mortgage brokers and financial advisers are ready to help you make sense of NZ home loans and co-ownership options for investing in a home or buying land NZ. Contact Mortgage Masters for more information on home loans in New Zealand.

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