Becoming a full homeowner is a big milestone, that’s a dream for most Kiwis. With the First Home Partner Program from Kainga Ora, it’s a goal that’s achievable within 15 years. To help buyers achieve this goal, KO provides access to a Goals Management Program.
The Goals Management Program is an annual meeting at your home with a KO Relationship Manager. During the meeting, the manager works with buyers to set and achieve goals for:
- Becoming a full homeowner – how to pay off Kainga Ora’s share over 15 years
- Maintaining the home in a similar condition to when it was purchased
- Continuing to live at the home during the period of shared ownership
How to pay off Kainga Ora’s Share of the home
If you have entered into the Kainga Ora First Home Partner agreement and want to buy out Kainga Ora’s share of your home, you have a couple of options. The first option is a single lump-sum payment. The amount required for your payment is determined by the value of the home at the time. This means that if the value of the property has increased from when you originally purchased it, the share of the home Kainga Ora owns will cost more to purchase.
You can also make smaller payments in minimum increments, such as $1,000, until you have fully purchased Kainga Ora’s share of your home. Keep in mind that this payment is still determined by the value of the home at the time.
Additionally, if you have not bought the share in your home owned by Kainga Ora within the first 15 years of ownership, you’ll start to be charged an annual administration fee to cover reasonable costs incurred by Kainga Ora. It’s important to consider your financial situation and goals when deciding which payment option is right for you.
The Goals Management Program offered by the Kainga Ora is an excellent tool to help buyers achieve their goal of becoming full homeowners within 15 years. Once you’ve entered into an agreement, there’s different ways you can begin to pay off Kainga Ora’s share. The SM Property team have helped several Kiwis into their first home through the KOFHP. We’re here to help you, so contact us today to start your home buying journey.
