A new Christchurch housing initiative will provide eligible home buyers the extra money they need to bridge the gap between their savings and the deposit threshold required by banks and other lenders.
Te Whāriki tū-ā-Rongo, otherwise known as the Christchurch Housing Initiative, is the brainchild of Christchurch councillor Vicki Buck.
No interest will be charged in the scheme and participating households will have up to 15 years to repay the money.
To be eligible, applicants will need to have at least one household member in full-time employment and not own or rent out a home that they own.
Priority will be given to applicants with household income at, or below, the Christchurch median of $83,000, with children, and who would otherwise be unable to enter the housing market.
Ms Buck says it’s great news for modest income families who often miss out on support as their income is considered too high for certain subsidies, yet doesn’t allow them to save enough for a deposit.
“This is for people who can afford to make regular mortgage repayments but who may have difficulty saving for a deposit. I’m so pleased to see this get underway – it’s been a long time in the making,” she says.
“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 wellbeing – which are positive social benefits for them individually and our community as a whole.”
The Christchurch Housing Initiative was first announced in April 2017. It is being jointly funded by the Government and Christchurch City Council, with each contributing $3 million.
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