The scheme is a "commercial take on the bank of mum and dad"
Leading financial institution BNZ has announced that it will offer a new shared ownership loan scheme for first-time home buyers.
The idea is that BNZ’s commercial shared ownership model will pair up potential home owners with a “trusted industry partner.” Together they build the funds required to purchase the house with the help of BNZ, and the third-party takes an equity share in the property.
BNZ chief customer officer consumer and wealth Paul Carter said the scheme is a commercial take on the bank of mum and dad for new home owners.
“Not everyone has family to call on in this way and that’s where shared ownership could help,” he explained. “Shared ownership is another way that BNZ can help our customers get into their first home.”
Initially, BNZ’s shared ownership offering will be limited to certain new-build houses in Auckland. The scheme and more details will be available early next year.
“While we are launching small, we and our partner will be looking to make shared ownership available to more first home buyers wherever they are in New Zealand after the launch next year,” Carter noted.
“We are looking at a similar scheme for low income earners so it’s great to see BNZ looking at a progressive home ownership model like this,” Housing Minister Phil Twyford added.
