Christchurch housing initiative opens

People keen to get into the local property market are lining up for a new scheme that offers a helping hand into home ownership.

Applications officially open at midday today for the Christchurch Housing Initiative, Te Whāriki tū-ā-Rongo.

The number of potential home buyers who have pre-registered their interest for the scheme since it was announced in October has already reached about 200.

The initiative provides selected eligible people with the extra money they need to bridge the gap between their savings and the deposit threshold required by banks and other mortgage lenders.

No interest is charged and participating households have up to 15 years to repay the money.

It is being jointly funded by the Government and Christchurch City Council, with each contributing $3 million.

Penny Taylor, Spokeswoman for Habitat for Humanity Christchurch which is administering the initiative, says the number of pre-registrations of interest in the scheme ahead of its official launch has exceeded expectations.

“I think the demand we’ve seen already demonstrates that it’s necessary and it will really help people, particularly modest income families who often miss out on support because their income is too high for most subsidies but it’s not enough for them to save a big deposit.”

She hopes the initiative will be able to support up to 50 families to buy a home of their own over the next three years.

To be eligible applicants need to have at least one household member in full-time employment and to not own or rent out a home. There is also a maximum household income threshold and applicants must be either New Zealand citizens or permanent residents.

Priority is being given to applicants with household income at, or below, the Christchurch median of $83,000, families, first time buyers and those who would otherwise be unable to enter the housing market.

The initiative’s name, Te Whāriki tū-ā-Rongo, means crossing the threshold to the realm of peace. In this context, it's about a family taking the step into home ownership to achieve more stable and secure lives.

Home buyers helped through the initiative will still be eligible for other existing Government first home ownership incentives, including the KiwiSaver HomeStart Grant.

Unlike many other shared equity schemes, they will be able to buy existing homes rather than having to buy newly built homes – giving participants the option of remaining in the communities they are already established in.

To find out more, or apply, please visit the Christchurch Housing Initiative website.