How to buy a KiwiBuild home
Buying a KiwiBuild home is just like buying a home on the open market except the homes are sold at or below a price cap and they are offered exclusively for sale to pre-qualified eligible, qualified KiwiBuild buyers. You will still need a deposit and to prove to a bank or lending institute that you can afford to repay a mortgage.
The first step is to check if you are eligible. If you are, you can apply online and pre-qualify as a KiwiBuild buyer. The best time to do this is when you have seen a home you like in an area you would like to live in.
Once you’ve successfully completed the pre-qualification stage, you are ready to buy a home.
KiwiBuild homes can be sold in a number of ways including through a ballot or by direct sale.
In cases where there is high demand, we will offer KiwiBuild homes for sale through an electronic random ballot draw. This ensures that every eligible buyer has an equal chance at getting the opportunity to buy a particular KiwiBuild home.
While you can enter the ballot for as many homes as you like, across different developments, you can only win one ballot. The ballot winner then has the opportunity to purchase the home through the normal Sales and Purchase process.
Homes may be offered for ballot at different stages of construction. Some people may wish to buy off the plans to secure their home, and then move in once it is completed. Others may choose to wait to buy until the homes are completed or nearing completion.
Not every KiwiBuild home is sold this way. Sometimes we may offer pre-qualified KiwiBuild buyers the opportunity to buy a home through a direct sale. That means pre-qualified eligible KiwiBuild buyers can speak directly with developers about buying a home.
To ensure you are kept in the loop about the location of the latest KiwiBuild homes, please register with us on the link below. You’ll receive information about the type of homes, where they are, the price, when they’re completed and how you can find out more information about the development.
The KiwiBuild home buying process
1. Check if you're eligible
The first step in the buying process is to check if you're eligible to be part of the KiwiBuild programme.
KiwiBuild homes are for people who are aspiring first home buyers or ‘second chancers’, who
- meet the citizenship/residency requirements,
- earn below the income caps, and
- are going to own and live in the home for at least three years.
You'll find the definition of a ‘second chancer’ in our eligibility section, but it’s typically someone who is in a similar financial situation to a first home buyer.
2. Ready to buy
Once you’re ready to buy, and you know you’re eligible for a KiwiBuild home, you need to fill in an online application to prove you meet the KiwiBuild requirements, and meet with a bank or lending institute to discuss your mortgage options. This is called the pre-qualification stage.
It’s also a good idea to look into the HomeStart Grant and Welcome Home Loan, which could help you finance your new home. You can also look into using your KiwiSaver funds to assist. You should talk to your lawyer too.
Your pre-qualification will remain valid for six months, so it’s a good idea to familiarise yourself with the system and the documentation you require. Make sure you’re ready to apply when you see your ideal KiwiBuild home coming to market.
The pre-qualification process is separate from entering a KiwiBuild ballot for a home or buying a home direct.
3. Enter a ballot for a KiwiBuild home or buy one direct
In most cases, we will offer KiwiBuild homes by ballot to ensure the process is fair and every eligible buyer has the same opportunity to win a ballot and buy a home. You can enter the ballot for as many homes as you like but you can only win one ballot. We strongly urge you to speak to the developer or real estate agent before entering the ballot to find out about the home and make sure it meets your needs.
Sometimes, the winner of a ballot may choose not to buy the home. If this happens, we redraw the ballot from remaining applicants. The new winner is then offered the chance to buy a home.
We do not sell every home through the ballot process. When that happens, we offer pre-qualified KiwiBuild buyers the opportunity to buy the home through a direct sale. In this case, you meet the developer or real estate agent, they confirm with us that you are a pre-qualified eligible KiwiBuild buyer, and you begin the process of buying a home on the spot.
4. Completing the purchase of your KiwiBuild home
Purchasing your KiwiBuild home uses the normal real estate sales and purchase process, which involves working with your bank, your lawyer, and the sales agents.
KiwiBuild buyers are be required to sign a Deed of Covenant to ensure they intend to own and live in their KiwiBuild home for at least three years.
Download the Deed of Covenant
The location of KiwiBuild homes
At least 50,000 KiwiBuild homes will be built in Auckland to help meet the growing demand for housing in our biggest city.
Outside of Auckland, our initial focus will be on areas with high housing demand and affordability pressures, such as:
- Queenstown-Lakes District
- Whangarei District, and
The cost of KiwiBuild homes
The price of a KiwiBuild home is determined by the developer; however, it must be within the maximum price caps that have been set by the Government.
Auckland and Queenstown-Lakes price caps
|1 bedroom, studio or 1 bedroom+ study||$500,000|
|3 or more bedrooms||$650,000|
Rest of New Zealand
The cap for the rest of New Zealand is $500,000.
The Government is looking at ways to further break down this price cap based on typology and regional variations.
Register with us to receive updates
The best way to receive up-to-date information about KiwiBuild is to register with us. It doesn’t require any further action on your part. You simply sign-up, and we’ll keep in touch through email.
If you would like more information about the KiwiBuild programme or if you have a question for our team, there are two ways to get in touch.
December 20, 2018