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Te Ahuru Mowai - Latest News [Page 1]
Te Āhuru Mōwai To Build 10 Affordable Rental Homes In Paekākāriki
Te Āhuru Mōwai is funding the project with Affordable Housing Grant support from Te Tūāpapa Kura Kāinga – Ministry of Housing and Urban Development. The balance of the development cost is borrowings, provided by Te Āhuru Mōwai funding partner, ... More >>
Te Āhuru Mōwai Celebrates The Opening Of 12 New Social Homes In Porirua
Friday, 4 October 2024, 10:37 am | Te Ahuru Mowai
Te Āhuru Mōwai Chairman Tā Matiu Rei stated, '12 more whānau will have homes in Porirua as a result of this mahi, and we look forward to providing many more warm, dry, safe, and beautiful homes in the near future.' More >>
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1News
27-05-2025
- 1News
New cost for first-home buyers with changes to First Home Loan
First-home buyers accessing the Kāinga Ora-administered First Home Loan will pay a higher fee from July 1. The scheme allows borrowers to access loans with a deposit as small as 5%, if they earn less than $95,000 as an individual without dependents or $150,000 as a couple or single parent. These loans do not fall under the banks' loan-to-value rules and borrowers can usually access bank special rates and do not have to pay the low-equity fees and margins that could otherwise apply. Previously, borrowers had to pay lenders mortgage insurance of 0.5% of the loan amount. But from July 1, that increases to 1.2%. Borrowers can pay it upfront or over the lifetime of their loans. ADVERTISEMENT The change applies to loans submitted after 1 July. A spokesperson for the Ministry of Housing and Urban Development said the Government had agreed to cease its contribution to the mortgage insurance premium as part of the Budget. "This change is expected to generate savings of $17.9 million per annum from 2025/26 onwards. "These savings, along with others identified across the housing portfolio, will be fully reprioritised to support both existing housing services and the delivery of new initiatives within Vote Housing and Urban Development, including investments in social housing, transitional housing, and housing support services." The ministry said that for an average first home loan of $550,000, it would increase the premium paid by the borrower from $2750 to $6600. "This cost can be paid upfront or added to the loan, which would increase the total borrowing by approximately $3850. "HUD does not expect that moving to a full cost recovery model will materially affect the uptake of first home loans or households' ability to reach home ownership relative to current settings. ADVERTISEMENT "The increase in cost is less than 1% of the average loan value and is not expected to significantly impact borrowers' ability to service their mortgage, meet deposit requirements, or access lending." David Cunningham, chief executive at mortgage advice firm Squirrel, said it was a change that was "snuck in". But he said it would not make a big difference to most borrowers. "On a $400,000 loan that lifts the LMI from $2000 to $4800. Whilst the $2800 difference seems big, it is just part of the cost of establishing home ownership. "Changes to interest rates are a much bigger factor as they impact every year rather than a one-off. With interest rates about 1.5% lower than they were a year ago and house prices a bit lower, first-home buyers are in a better position than a year ago, despite this change." There were just over 5500 First Home Loans approved last year. Jeremy Andrews, a mortgage adviser at Key Mortgages, said the change had come as a surprise. ADVERTISEMENT "I've done a heck of a lot of Kāinga Ora First Home Loans over recent years … a 0.5% fee was typically a no-brainer even when clients could have been approved with their main banks [with a] low deposit outside the scheme. "There are still cases where it makes sense, as that's a one-off fee rather than typical ongoing margin until clients reach the sweet spot of 20% equity. "It's also ironically the same 1.2% margin that BNZ charges their existing 'main bank' clients with between 5% under 10% deposit. BNZ, like most other banks, charges an ongoing low equity margin every year until clients can prove they have 20% deposit - and this might require an updated valuation to do so." He said a benefit of the First Home Loan scheme was that people could usually be preapproved, and it was sometimes possible to get higher cashbacks from banks. "There are several different lenders who can provide preapproval with Kainga Ora First Home Loans, each with pros and cons, such as considering either one or two boarders if applicable, turnaround time differences and varying rates and cashbacks. " Karen Tatterson, Loan Market mortgage adviser, said the main banks were generally not issuing pre-approvals for low-deposit borrowers not part of the First Home Loan scheme at the moment. "It means that the only time you can get an approval is if you are under contract on a property or going to auction on a specific property. "It does cause a concern for first-home buyers as they cannot go to the market armed with a preapproval, and this creates some nervousness for them. The key is good advice and ensuring they speak to an adviser so they know their numbers."
Otago Daily Times
26-05-2025
- Otago Daily Times
Budget change may cost first home buyers thousands
By Susan Edmunds of RNZ First-home buyers accessing the Kainga Ora-administered First Home Loan will pay a higher fee from 1 July. The scheme allows borrowers to access loans with a deposit as small as 5 percent, if they earn less than $95,000 as an individual without dependents or $150,000 as a couple or single parent. These loans do not fall under the banks' loan-to-value rules and borrowers can usually access bank special rates and do not have to pay the low-equity fees and margins that could otherwise apply. Previously, borrowers had to pay lenders mortgage insurance of 0.5 percent of the loan amount. But from 1 July, that increases to 1.2 percent. Borrowers can pay it upfront or over the lifetime of their loans. The change applies to loans submitted after 1 July. A spokesperson for the Ministry of Housing and Urban Development said the government had agreed to cease its contribution to the mortgage insurance premium as part of the Budget. "This change is expected to generate savings of $17.9 million per annum from 2025/26 onwards. These savings, along with others identified across the housing portfolio, will be fully reprioritised to support both existing housing services and the delivery of new initiatives within Vote Housing and Urban Development, including investments in social housing, transitional housing, and housing support services." The ministry said for an average first home loan of $550,000 it would increase the premium paid by the borrower from $2750 to $6600. "This cost can be paid upfront or added to the loan, which would increase the total borrowing by approximately $3850. "HUD does not expect that moving to a full cost recovery model will materially affect the uptake of first home loans or households' ability to reach home ownership relative to current settings. The increase in cost is less than 1 percent of the average loan value and is not expected to significantly impact borrowers' ability to service their mortgage, meet deposit requirements, or access lending." David Cunningham, chief executive at mortgage advice firm Squirrel, said it was a change that was "snuck in". But he said it would not make a big difference to most borrowers. "On a $400,000 loan that lifts the LMI from $2000 to $4800. Whilst the $2800 difference seems big, it is just part of the cost of establishing home ownership. Changes to interest rates are a much bigger factor as they impact every year rather than a one-off. With interest rates about 1.5 percent lower than they were a year ago and house prices a bit lower, first-home buyers are in a better position than a year ago, despite this change." There were just over 5500 First Home Loans approved last year. Jeremy Andrews, a mortgage adviser at Key Mortgages, said the change had come as a surprise. "I've done a heck of a lot of Kainga Ora First Home Loans over recent years … a 0.5 percent fee was typically a no brainer even when clients could have been approved with their main banks [with a] low deposit outside the scheme. "There are still cases where it makes sense as that's a one-off fee rather than typical ongoing margin until clients reach the sweet spot of 20 percent equity. "It's also ironically the same 1.2 percent margin that BNZ charges their existing 'main bank' clients with between 5 percent under 10 percent deposit. BNZ, like most other banks, charges an ongoing low equity margin every year until clients can prove they have 20 percent deposit - and this might require an updated valuation to do so." He said a benefit of the First Home Loan scheme was that people could usually be preapproved and it was sometimes possible to get higher cashbacks from banks. "There are several different lenders who can provide preapproval with Kainga Ora First Home Loans, each with pros and cons such as considering either one or two boarders if applicable, turnaround time differences and varying rates and cashbacks. " Karen Tatterson, Loan Market mortgage adviser, said the main banks were generally not issuing pre-approvals for low-deposit borrowers not part of the First Home Loan scheme at the moment. "It means that the only time you can get an approval is if you are under contract on a property or going to auction on a specific property. It does cause a concern for first-home buyers as they cannot go to the market armed with a preapproval and this creates some nervousness for them. The key is good advice and ensuring they speak to an adviser so they know their numbers."
Scoop
05-05-2025
- Scoop
How Rotorua Is Bucking The National Trend For New Home Builds
Rotorua has hit its highest number of new build homes in 14 years, bucking the national trend. It comes as a new assessment finds the city has more than enough future housing capacity, a turnaround from shortage projections. More than 500 homes were built in the city last year, about half of them social housing or affordable rentals. Rotorua Lakes Council destination development group manager Jean-Paul Gaston told an April meeting many of the 522 houses were built in the central and western areas. Net new homes reached 483 after accounting for homes removed to make way for developments. It was the third year in a row that new home numbers peaked since 2011, and another 600 homes were in the pipeline for the next couple of years. Data provided to Local Democracy Reporting showed 304 of the new houses were built in Rotorua's western and central areas: 253 in the western area in 2024, up from 199 in 2023 51 in the central area in 2024 compared to 38 in 2023. The council had a goal of building 3000 new homes in those areas by 2032. After the meeting, Rotorua Mayor Tania Tapsell said improving housing options for the city remained a top priority for the council as it would have "huge benefits for our community". "These housing developments are not just public homes, but all types of homes, including affordable rentals and retirement options for our older residents. "I know the economy has been uncertain but despite slower markets elsewhere, we've got a strong number of building consents coming through in Rotorua." Tapsell said the council would continue to work to unlock land and opportunities for new homes. In February, Local Democracy Reporting wrote that $259 million worth of new residential and commercial buildings were consented in Rotorua in the year to September - more than double the $112.2m of consents issued in 2023. According to Stats NZ, new dwelling consents nationwide in 2024 were down 9.8 percent on 2023. Gaston wrote in the meeting's agenda the city avoided the national decline in building numbers because of multi-year investment by Kāinga Ora and the Ministry of Housing and Urban Development, support for Māori affordable rental development, and significant staged developments such as Freedom Village. The recent fast-track consenting of a new Summerset lifestyle village in Fairy Springs provided additional future certainty of 260 housing units within the short/medium-term, Gaston wrote. Other projects included the first 16 homes in the Ōwhata Kōhanga Rākau iwi-led housing development on the east side of Rotorua, which opened in November and will eventually have 93 homes including 38 affordable rentals and kaumātua housing. A council spokesperson said it knew of 262 among last year's 522 new builds that were social housing or affordable rentals. Among these were 17 two-bedroom and three three-bedroom homes on Lake Rd. This Kāinga Ora development opened in May. A Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development (MHUD) spokesman said 101 homes were built as part of MHUD housing programmes, including 80 iwi-led Māori affordable rentals. Kāinga Ora added 104 new social housing places to its stock in Rotorua. The spokesman said Rotorua's housing shortage resulted from a rapid increase in the resident population from 2013 and too few houses being built to meet the demand. The rental market tightened and rents rose relative to incomes, leading to more households on the Housing Register and large numbers in temporary or emergency accommodation. This peaked at 699 households in December 2021. The ministry partnered with others including iwi and the council to make a plan for Rotorua including short-term and more permanent housing solutions. The number of households in temporary and emergency housing had dropped to 96 as of March. "This is a result of the government's significant investment in Rotorua." The city remained a priority for the Ministry with a "strong pipeline" of additional housing places to be delivered - 170 state homes by mid-2025 and another 72 by July 2026. The government was criticised for using Rotorua's motels as a "dumping ground" for the country's homeless during peak pandemic years, but consistently denied actively bringing in out-of-towners. New housing assessment finds capacity in surplus The last Housing and Business Development Capacity Assessment in 2021 projected the city was heading for a 10,000-home shortage in the long-term, by 2050. An updated assessment from 2024 presented to a council meeting on Wednesday found an overall surplus of 300 - 1600 dwellings short-term, 2200 - 5200 medium-term, and 10,100 - 24,700 long-term. This turnaround was broadly credited to work identifying and preparing new greenfield (undeveloped) land for housing, and enabling intensification. "This puts the district in a good position to respond to what the community needs as it grows and to make adjustments if needed," Gaston said in a statement.
