What do we Know About KiwiBuild?
There has been a lot of talk in recent times regarding the Government’s KiwiBuild initiative and with some upcoming developments we thought it would be timely to provide an overview of the KiwiBuild eligibility and process.
Who is eligible?
KiwiBuild homes are for aspiring first home owner-occupiers. To be eligible you must:
Be a New Zealand citizen or permanent resident
Be a first home buyer or in the same financial position as a first home buyer (as deemed by Housing New Zealand)
Have a gross household income no higher than $120,000pa for a single purchaser and no higher than $180,000pa where there is more than one purchaser
Intend to live in the home as your principal place of residence for a minimum of three years
If you haven’t already registered your interest in KiwiBuild you can do so here. Registering your interest will ensure you are kept up to date with the latest developments and you will receive information about available KiwiBuild properties.
Once you are aware that there are KiwiBuild properties in a location you are interested in, you will need to complete the online pre-qualification process. This must be done before you can enter a ballot for a KiwiBuild home. As part of the pre-qualification process you’ll need to submit the following:
Proof of citizenship or residency (certified copies of Passport and visas)
Proof of income (IRD Proof of income for the prior 12 months)
Financial pre-approval from a bank or other lender, as well as evidence of your own deposit
A KiwiBuild Statutory Declaration
Your pre-qualification will only remain valid for six months from the date you pre-qualify so it is recommended that you wait until you have identified a KiwiBuild home that you want to purchase before completing the process.
Ballots opened for Northlake, Wanaka on 8 October 2018, New North Road, Mt Albert on 22 October 2018 and Te Kauwhata, Waikato on 29 October 2018. Other recently closed ballots were open for 4 weeks so if you are interested in any of these areas it would be worth completing the pre-qualification as soon as possible. In future other areas such as Wellington, Hamilton, Napier-Hastings, Queenstown-Lakes District and Tauranga will also get KiwiBuild properties.
Although you might not necessarily need your finance pre-approval for a KiwiBuild home right now, it is still worth talking to a specialist mortgage adviser regarding your options. They will be able to provide you with personalised advice and guidance to help ensure your financial position is as favourable as possible (which could improve your chances of obtaining bank finance). Depending on your situation, you may even be able to purchase a non-KiwiBuild home, and get into your own home sooner.
Give us a call if you’re interested in purchasing a KiwiBuild home or your first home, we would love to assist you and our advice is 100% free of charge.