Shared equity schemes

The Shared Equity Scheme provides loans to first home buyers receiving a modest income. This was a 2 year pilot administered by the Kāinga Ora (previously Housing NZ) and ran from 1 July 2008 until 30 June 2010. While there will be no new loans given there are still existing clients who may apply Accommodation Supplement.

To be eligible for a Shared Equity Scheme loan, clients must have had a Kiwibank approved mortgage.

Clients who receive a loan through the Shared Equity Scheme may elect to repay the loan but this is not required unless:

• the client defaults on Kiwibank repayments, rates, insurance etc
• the client defaults on the Shared Equity Scheme loan conditions
• the client sells the property
• all borrowers on the Shared Equity Scheme loan are deceased
• the client refinances with another bank or building society
• the clients voluntary repays the total Shared Equity Scheme loan before it matures (ten years)

Where mortgage repayments are not required they cannot be included as accommodation costs.