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First Home Buyers Alert: Kāinga Ora Premium Doubles from July 1st
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Breaking news for Kiwi first home buyers! The Kāinga Ora low equity premium is more than doubling, jumping from 0.5% to 1.2% of your loan amount effective July 1st. This change significantly impacts anyone using the First Home Loan scheme with less than a 20% deposit.
Let's put this in real money terms: on a typical $600,000 mortgage, you're now looking at $7,200 instead of $3,000 – that's an extra $4,200 straight out of your pocket! And if you add this to your loan balance rather than paying upfront, you'll end up paying considerably more over a 30-year mortgage term. This fee increase only affects Kāinga Ora First Home Loans for buyers with less than 20% deposit, and only for applications submitted after July 1st.
Despite this increase, Kāinga Ora may still be your best pathway to homeownership, especially if you've only saved a 5% deposit. Many mainstream banks simply can't accommodate such low deposit lending in the current market. However, for others, this change might make alternative lenders or saving a larger deposit more attractive. Every situation is unique, which is why connecting with a mortgage advisor has never been more important – we can run the numbers across different scenarios and help you determine the most cost-effective approach. If you already have Kāinga Ora approval under the old premium rate, now's the time to act before that approval expires! Subscribe to our podcast and share this episode with your first-time buyer mates – this information could literally save them thousands of dollars.
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Chapters
1. Kayanga Ora Fee Increase Explained (00:00:00)
2. Breaking Down The Cost Impact (00:01:24)
3. Who's Affected and Future Options (00:02:49)
4. Real-Life Example and Key Takeaways (00:04:23)
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