Bridget and Peter are Housing New Zealand tenants in Whanganui. They have been tenants in the same property for coming up 20 years and have always wanted to buy their rental property, but have never had the deposit to help with the purchase.
They have a combined income of $62,000 and the house which has been confirmed as being available for sale has a purchase price of $70,000. A 20% deposit, as normally required by banks would total $14,000.
Bridget and Peter have applied for a First Home Loan pre-approval and they have been confirmed as being eligible. This will mean that they only require a deposit of at least 5%.
Being eligible for the Tenant Home Ownership Grant, means that Housing New Zealand would provide them with a $7,000 grant. This would be the 5% deposit that their First Home Loan lender requires to approve their loan application and allowing them the chance to buy their home they have lived in for a number of years with no other savings behind them.
|First Home Loan||$63,000|
|Tenant Home Ownership Grant||$7,000|