Your deposit
Your deposit is how much you’ve saved up to put towards your home. That might be 10% of the total purchase price.
We’ve teamed up with organisations that partner with first home buyers who are finding it hard to save a deposit for a home that meets their needs.
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You could buy your first home with as little as 5% deposit, by partnering with a shared ownership provider, to buy a house together. Initially, the shared ownership provider would own part of your home. This means you need a smaller deposit upfront.
With shared ownership, a third party provider contributes money towards the purchase of your home. How much they contribute can vary by provider, but you’ll always be the majority homeowner and occupier.
Let’s say that you own 90% of your home and a provider owns the other 10%.
Your deposit is how much you’ve saved up to put towards your home. That might be 10% of the total purchase price.
You borrow 80% from a bank and pay off your mortgage over a number of years.
The provider’s share is 10%, which you would eventually buy back yourself.
You’ll buy back shares from the provider (there’s usually a time limit on this) until they no longer have a stake in your home. Shared ownership providers will usually allow you to do this either in a single lump-sum payment, or in smaller increments over time. You can use savings or apply for a home loan top-up for this.
You may need to get permission to do renovations or if you want to sell your home while your provider still owns a share in it. When selling, any proceeds will usually be divided according to your ownership shares.
If you’ve researched the options and decided shared ownership is right for you, here are the next steps.
Find out which shared ownership programmes you might qualify for. Income caps typically differ by provider.
Submit an application to your chosen provider.
Once approved by a programme, contact us about getting conditional approval for a BNZ home loan under a shared ownership scheme.
BNZ’s role is as a lender only. Make your own enquiries and seek independent legal advice about any arrangement with a shared ownership organisation that you might chose to partner with.
Kāinga Ora is a government agency focused on delivering public housing and affordable home ownership options.
Housing Foundation is a not-for-profit, charitable trust that helps lower-income households into homeownership.
Ngāi Tahu offers support to whānau on their home ownership journey.
We’ve teamed up with organisations that provide shared ownership programmes to help first home buyers with a low deposit.
If you’re buying a new build, or buying a property off plans (still under construction), deposit requirements can be flexible.
Your parents might be able to help by gifting or loaning money towards a deposit, or acting as guarantors or co-borrowers.
Leave your details and we’ll get in touch to talk you through the process.
Mobile Mortgage Managers cover both city and rural areas across New Zealand. We’re available seven days a week, and can come to you, where and when it suits.
One of our loan experts can give you a call to talk you through your options. Contact us online, or through Internet Banking or the BNZ app.
If you need some help call 0800 275 269.