New scheme aims to help New Zealanders who are struggling to save house deposit

A new Government scheme has been launched to help people who struggle to raise enough money for a deposit into home ownership. 

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The first stage will help 100 low-to-medium income families that are struggling to put together a deposit. Source: 1 NEWS

The $400 million scheme announced last September during changes to the failed KiwiBuild scheme includes options for shared equity or ownership, rent-to-buy and leasehold homes.

Housing Minister Megan Woods said the first stage of the progressive home ownership scheme would help 100 low-to-median income families in Auckland and Queenstown "who are struggling to pull together a deposit, or pay a mortgage, into home ownership".

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"The fund will focus on areas where housing affordability is most severe, with a strong preference for new houses to build supply."

It will prioritise people in places with severe housing affordability, households unable to otherwise buy, and Māori, Pacific people, and families with children. 

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Greens co-leader Marama Davidson said the fund meant "means more low income families who have been locked out of the housing market will finally have a chance at owning their own home".

The progressive home ownership fund was in the Green Party and Labour’s confidence and supply agreement. 

Shared equity entails a third party owning part of the property and rent-to-buy scheme would see a portion of rent set aside to build up equity or a deposit for the home either outright or through the shared equity scheme.