1. Get Ready
If you wish to buy a KiwiBuild home, ensure you are eligible and pre-qualified(external link)
Take a good look at your finances – this mortgage calculator can help you work out how much your home loan repayments are likely to be.
Talk to a bank or lender about getting pre-approval for a home loan so you know exactly how much you can spend. You could be eligible for a Welcome Home Loan(external link) to help with reducing the cost of your mortgage if you only have a small deposit.
Look into whether you want to use your KiwiSaver to help with your deposit(external link), and whether you are eligible for a KiwiSaver HomeStart Grant(external link) of up to $20,000.
Get a lawyer lined up to help you understand all the paperwork. Check here (external link)to find a property lawyer in your area.
2. Learn about the property
It’s important to do your homework about a property before you buy. See the KiwiBuild homes that are available to buy(external link)
We recommend that you visit the home or building site and talk to the real estate agent to learn all about the home you wish to buy.
3. Understand the buying process
Buying a house in New Zealand is usually done through a licensed real estate agent who is paid by the seller.
KiwiBuild homes are typically sold through a ballot or a ‘first come, first served’ basis to pre-qualified KiwiBuild buyers(external link). If there is anything you don’t understand about these processes, ask the real estate agent and your lawyer.
In the open market, in most cases, you’ll make an offer by filling in and signing a sale and purchase agreement. For KiwiBuild homes, there is a fixed price and you will sign the sales and purchase agreement if you are successful in a ballot or decide to buy a home that is available through ‘first come, first served’.
This agreement is a legal contract that sets out how much you will pay for the home including the deposit, any conditions of the offer and when the change of ownership will take place. You and the seller both sign this contract, and then work to meet any conditions in it. This agreement becomes unconditional when all the conditions are met.
Then you can look forward to settlement day, which is when you pay the balance of the purchase price and the property becomes yours.