About us
Part 2: Strategic priority five: Facilitate sustainable home ownership
Strategic priority definition
This priority is about improving the access of people on low and modest incomes to the finance, knowledge and skills they need to undertake and maintain home ownership.
The priority covers the Corporation's role as lender and insurer.
Key activities
- Mortgage Insurance Scheme (Welcome Home Loan).
- Low Deposit Rural Lending.
- Home ownership education.
- Building, maintenance and infrastructure loans.
Other activities include offering papakainga loans, delivering lending assistance for non-weathertight homes and delivering home ownership support.
Mortgage Insurance Scheme (Welcome Home Loans)
The Corporation is working with lenders to offer the Welcome Home Loan for people on modest incomes who want to move from renting to home ownership.
Welcome Home Loans are available to people who can afford mortgage repayments but have little or no deposit, and would not normally qualify for a home loan. Participating lenders offer up to 100 percent of the house price, while the Corporation provides mortgage insurance to the lender.
| Total revenue Crown for Mortgage Insurance Scheme | $6.609m |
| Total revenue other for Mortgage Insurance Scheme | $1.689m |
| Total operating cost for Mortgage Insurance Scheme | $8.878m |
Low Deposit Rural Lending
The Low Deposit Rural Lending scheme started in 1995 as a pilot to address the poor quality of Maori housing. The scheme offers low to modest borrowers a mortgage based on a three percent deposit with an interest rate fixed for seven years.
It is delivered, in partnership with the Corporation, through 13 approved iwi providers, and covers the Northern and Central North Island north of a line between Wanganui, Taupo and Hawke's Bay. It excludes the metropolitan area of Auckland, as well as the Manawatu, Wairarapa and Wellington regions, and South Island.
| Performance measures | 2006/07 targets |
|---|---|
| Total number of low deposit rural loans approved | 25-3010 |
| Total value of low deposit rural loans approved (includes papakainga loans) | $3.000m |
| Total revenue other for Low Deposit Rural Lending | $4.317m |
| Total operating cost for Low Deposit Rural Lending | $4.980m |
| Crown capital appropriation for Low Deposit Rural Lending | $3.000m |
Home ownership education
The home ownership education programme supports people into home ownership. The programme aims to educate first home buyers on the difference between owning and renting a home, financial budgeting, home maintenance and more. The programme builds on and extends the Corporation's existing home ownership programmes to appeal to a wider urban audience nationwide.
| Performance measures | 2006/07 targets |
|---|---|
| Total number of home ownership education participants | 5,000 |
| Total value for delivery of the home ownership education programme and support to customers | $3.827m |
| Total revenue Crown for the home ownership education programme | $3.827m |
| Total operating cost for home ownership education | $4.464m |
Building maintenance and infrastructure loans
Rural housing supports access to home ownership in rural areas by providing suspensory loans for infrastructure improvements or essential repairs.
| Total revenue Crown for building maintenance and infrastructure loans | $7.678m |
| Total revenue other for building maintenance and infrastructure loans | $1.145m |
| Total operating cost for building maintenance and infrastructure loans | $12.027m |
Other loans and new product development
The Corporation operated several residual loan schemes which are now closed. Two of these were the homebuy and the sold loan portfolio. The Corporation is developing new lending products.
| Total revenue Crown for other loans and new product development | $0.504m |
| Total revenue other for other loans and new product development | $0.242m |
| Total operating cost for other loans and new product development | $2.759m |
| Crown capital appropriation for financial assistance for non-weathertight homes | $2.361m |
