New shared ownership product to help first home buyers with deposit
Loan funding confirmed for 50 more homes via Progressive Home Ownership (PHO) Fund
Second round of funding through PHO Fund’s Provider pathway
Working with Iwi and Māori organisations through Te Au Taketake
The Government is creating more opportunities for individuals, families and whānau to purchase their own homes through the Progressive Home Ownership (PHO) Fund.
“A core belief of this Government is that everyone deserves a warm, dry and secure home, whether they own or rent,” says Housing Minister Megan Woods.
“Progressive Home Ownership enables people who might otherwise never have a chance, to own their own home. 53 families are now living in these homes since the launch of the programme last year, with a further 113 contracted and on the journey to home ownership. These changes mean even more people will have that opportunity,” Megan Woods said.
Today, Kāinga Ora launched a new shared-ownership product, First Home Partner, through which Kāinga Ora will take an equity share in a property to assist first home buyers who can service a mortgage but need help raising their deposit.
“This phase of the PHO scheme provides additional financial support to households who don’t require the kind of intensive support to manage their finances as offered through the Provider pathway,” Megan Woods said.
Habitat for Humanity and Queenstown Lakes Community Housing Trust will also build 50 more homes around the country for progressive home ownership after Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development (HUD) approved their loans.
In addition, HUD has opened a second round of funding through the PHO Fund’s Provider pathway and is continuing to work with Iwi and Māori organisations through Te Au Taketake to establish their own progressive home ownership products.
The $400m PHO Fund will help between 1,500 and 4,000 individuals, families and whānau buy their own homes. Its priority is to support households unable to otherwise buy, and Māori, Pacific people, and families with children.
“Decades of under-investment in housing and infrastructure has pushed home ownership out of reach for too many families. This Government is embracing innovative solutions to enable more families to own their own homes and secure their futures,” Megan Woods said.
More information on the Progressive Home Ownership Fund scheme is here.