Te Whāriki tū-ā-Rongo (the Christchurch Housing Initiative) will start on November 1.
No interest will be charged and participating households will have up to 15 years to repay the money.
To be eligible for the scheme, applicants will need to have at least one household member in full-time employment and not own or rent out a home.
Priority will be given to applicants with a household income at, or below, the Christchurch median of $83,000 who have children and would otherwise be unable to enter the housing market.
Christchurch city councillor Vicki Buck, who instigated the initiative, says it is great news for modest income families who often miss out on support as their income is considered too high for certain subsidies.
“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 crossing a threshold of home ownership to achieve more stable and secure lives and well-being – which are positive social benefits for them individually and our community as a whole.”
The initiative was first announced in April 2017. It is being jointly funded by the Government and city council, with each contributing $3 million.
The Christchurch affiliate of Habitat for Humanity is going to administer the initiative.
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.
Habitat for Humanity will start taking applications from November 1.
Find out more, or pre-register your interest in the scheme here.
