Designed to help working households buy their first home
Our Shared Ownership Programme provides an opportunity for you and Housing Foundation to share the ownership of a property. You would buy a majority share of the property (usually 60% or more) making it more affordable for you than if you were to buy 100%.
Housing Foundation would retain ownership of the remaining share of the property (e.g. 40%) and both you and Housing Foundation would be recorded on the property title as owners until you are able to buy us out. Most households are able to do this within 7-10 years. You will need a deposit (your savings plus KiwiSaver) and a mortgage for the balance of the purchase price to buy your share. This will all be explained to you in detail before you are asked to sign a Shared Ownership Agreement. Look at this example where you buy 60% and Housing Foundation retains the remaining 40%.
Example figures for ownership of a 60% share in a property priced at $720,000.
Property’s market value (for example only)
Household buys 60% of the property with their deposit and bank mortgage
Housing Foundation’s share is the remaining 40% of the property
In this example, Housing Foundation retains 40% ownership of the property. You can buy our share out over time as your savings and/or income grow. Your funds for the initial purchase come from your deposit and the mortgage from the bank.
Rent to Own (HomeSaver Programme)
If you have manageable debt (not including student loans) that can be paid off within 5 years, and a low deposit, our HomeSaver Programme may be an option for you. Please apply and Housing Foundation will assess your Application and advise you which programme is most suitable for you based on your financial circumstances. Find out more about the Rent to Own (HomeSaver Programme).
Home ownership opportunities in the Greater Christchurch area
How Shared Ownership works
You buy what you can afford – usually a minimum of 60% of the value of the property
Your share grows in proportion to your investment
You can increase your share to 100% over time; Housing Foundation encourages you to become the full owner of your home
When you want to move on you can sell your share (e.g. 60%) back to the Housing Foundation based on an independent valuation, or you and the Housing Foundation can sell the property on the open market with the proceeds being shared according to the ownership percentage (e.g. 60% / 40%)
Under this arrangement, you secure a mortgage with a bank. Housing Foundation will assist in this process as we work with major banks who support our programme. As your financial situation improves, you can increase your share (percentage) of ownership until you own the property 100%. Each time you apply to purchase additional shares in your property, you are required to pay an Application Fee which covers a new valuation and our administration costs. You may buy additional shares from one year after moving in, in portions of no less than 5% at a time, until you own 85%. The final purchase of 15% is to be done in one transaction and then you own your home 100%. Housing Foundation does not charge you rent or a monthly fee on the share it owns. We do charge an Annual Management Fee to cover operational overheads, dealing with the administration of the property and for assisting you achieve full home ownership over a period of time.
How do I qualify for the Shared Ownership Programme?
You need to be:
A New Zealand Citizen or Permanent Resident
A first-time home buyer
Have at least one member of the household in full time employment
Have manageable debt
Have a deposit. This can come from your KiwiSaver account if their terms and conditions are met. Please check the requirements for the location you are applying for, as they do vary
As a guide, your total household income threshold is between $65,000 and $100,000 gross (before tax) per annum. Please check the requirements for the location you are applying for, as they do vary.
Where are the houses?
Please check our locations for where we are building now and in the near future.
How is the market value of the property determined?
It is determined by an independent registered valuer, who sets the value based on recent sales in the area.
What role does Housing Foundation play as shared owner?
Housing Foundation plays a passive role. Housing Foundation does not charge the household any interest or rent for its share of the property. When the property is sold, both the household and Housing Foundation get their share of any increase in the value of the property.
For example, the below figures show a household ownership share of 70%:
Property purchase price (example only)
Household’s ownership amount (70%)
Housing Foundation’s ownership amount (30%)
How often can I increase my share in the house?
You may purchase more shares-a minimum of 5% each time-in your home any time after the first anniversary of your purchase date. Once you own 85% of your home, you must buy Housing Foundation’s remaining 15% in one transaction.
How long could it take for me to fully own the house 100%?
Housing Foundation expects you to fully own your home within 15 years. If you do not own it outright by then, Housing Foundation will charge you interest on the share of the house that you do not own.
How do I apply for the Shared Ownership Programme?
You apply using the online Application Form.
What happens next?
Housing Foundation will assess your Application and advise you which programme is most suitable for you based on your financial circumstances. Find out about the Rent to Own (HomeSaver) Programme.
How do I apply?
Are you ready to begin the application process?
Once you submit an Application, it can take up to 6 months before you are approved for a home. Not every Application is successful but we will do all we can to help you become a homeowner as quickly as possible. This may include helping you manage your finances better so you become ready to take on the responsibilities associated with home ownership.
Check these essential requirements
You must be a NZ Citizen or Permanent Resident, and
You must be a First Home Buyer, and
One person in your household must be in full time employment
Check locations and eligibility criteria
Check the locations where Housing Foundation is building homes now or in the future and the eligibility criteria and requirements for each of those Locations.
Check that you have all the Supporting Documents
Housing Foundation needs your personal, financial, family and employment information so we can assess your application. For each Applicant you will need to upload or send:
Proof of NZ Citizenship or Permanent Residency
Three most recent, consecutive payslips verifying your income for the current year
Statements of debts (e.g. hire purchases, finance company loans, etc.)
Three consecutive months of your most recent Bank Statements for all Bank accounts
KiwiSaver pre-approval letter from your KiwiSaver provider
First Home Grant pre-approval letter (see the Resources page on our website for more information on how to apply)
Cover letter is optional but helps us to understand your circumstances
Once you have submitted your Application Form and supporting documents to the Housing Foundation you will be sent an acknowledgement message. It may be several days or (sometimes) weeks before you are contacted again. Please be patient while we assess your Application – there is a lot of information to go through.