KiwiBuild buyers must "carefully consider" the financial commitment

by Ksenia Stepanova14 Aug 2018

KiwiBuild has launched its online pre-qualification portal this week, bringing eligible New Zealanders one step closer to owning their own home.

The portal allows first-home buyers and ‘second chancers’ to apply to the KiwiBuild Unit, which determines whether they are eligible to enter a ballot to purchase a KiwiBuild home. According to the head of KiwiBuild, Stephen Barclay, the portal is an “important milestone” for the programme and offers a valuable first look at the pre-qualification system.

“There is no rush to pre-qualify for a KiwiBuild home,” Barclay said. “My advice is to familiarise yourself with the system, get a better understanding of the information you’ll need to provide us with, and obtain some financial advice as well. KiwiBuild will give you plenty of time to pre-qualify, view homes and make an informed decision about becoming a homeowner.”

According to Barclay, the best time to enter pre-qualification is when a KiwiBuild development becomes available in your area of interest.  You can then submit your details via KiwiBuild’s online portal, and you will be contacted with an update of whether you’ve qualified to enter a ballot.

However, he says it is also vital to keep in mind the magnitude of taking on a mortgage, and to ensure that you are well prepared to handle the financial implications.

“It is important to remember that buying a KiwiBuild home is similar to buying a home on the open market, and people will need to go through the same process as any first home buyer,” Barclay said.

“KiwiBuild homes are more affordable, but your mortgage provider will still require a deposit and be satisfied that you can afford a mortgage. While the KiwiBuild programme will make the process of buying a home as easy as possible, people need to carefully consider if home ownership is a commitment they are ready to make.”

KiwiBuild currently aims to deliver 1000 homes within its first year, followed by another 5000 by June 2020 and 10,000 by 20201. The scheme is initially focusing on areas most affected by high demand and low supply including Auckland, Wellington, Hamilton and Queenstown.

 

Related stories:
KiwiBuild criteria needs to accommodate low-income earners
KiwiBuild kicks off in Northcote with up to 400 homes

 

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