Co-Own With Kiwibank: A Smart Way To Get On The Property Ladder.
For many Māori and Pacific families, the dream of owning a home can seem out of reach, especially with high house prices, rising living costs, and stricter deposit requirements. However, Kiwibank’s Co-Own product offers a proven pathway that could bring that dream closer.
Whether you want to buy with whānau, friends, or someone you trust, Co-Own lets you purchase a home together while keeping things fair, legal, and clear.
What Is Co-Own?
Co-Own is Kiwibank’s shared ownership mortgage product, which has been helping New Zealanders get on the property ladder since May 2022. It allows up to four people (or two couples) to buy a home together through a joint home loan structure, where all co-owners are borrowers.
Key features include:
You don’t need to be married or in a relationship
You can buy with siblings, cousins, friends, or parents
All co-owners are jointly responsible for the entire home loan
The loan can be structured in different portions with varying amounts and repayment terms
Important clarification: Unlike what was stated in the original post, Co-Own typically uses a joint home loan structure rather than separate individual loans. All co-owners are jointly liable for the entire mortgage, although the loan can be split into separate portions.
How Does It Work?
Choose Your Co-Owners Carefully
Think carefully about who you want to purchase with. It should be someone you trust completely and can have open conversations with—money and property are significant commitments. Everyone needs to be comfortable sharing personal financial information with one another.
Agree on Ownership Shares and Contributions
You’ll all decide how ownership and contributions are divided, which may not necessarily be split evenly. For example, one person might contribute more to the deposit, while another handles higher mortgage repayments. These arrangements should be clearly documented.
Meet Deposit Requirements
Generally, a combined deposit of 20% of the purchase price is required if at least one co-owner will be residing in the property. This deposit can be sourced from savings or borrowed against the available equity in an existing property.
Get a Property Sharing Agreement
Kiwibank strongly recommends that all co-owners have a property sharing agreement in place before purchasing the property. This legal document outlines the consequences of someone wanting to sell, being unable to make repayments, or if circumstances change. Independent legal advice is essential for this step.
Who Is Co-Own For?
Kiwibank’s Co-Own is an excellent fit for :
Family looking to buy together and support each other
Friends teaming up to get into the market faster
Adult children and parents co-purchasing a home
First-home buyers who want to buy a bigger or better home with others
Single parents who want to share homeownership responsibilities
You’ll still need to meet Kiwibank’s lending criteria, but this structure makes it easier to pool resources, share the deposit, and manage ongoing property costs, such as rates, insurance, and maintenance.
What About KiwiSaver and Grants?
Important Update: First Home Grant No Longer Available
The First Home Grant was discontinued on 22 May 2024, effective immediately. This means that new applicants can no longer access grants of up to $5,000 for existing homes or $10,000 for new builds that were previously available.
KiwiSaver First-Home Withdrawal Still Available
If you’re using KiwiSaver for your deposit, Co-Own still works perfectly. Each eligible co-owner can apply to withdraw their KiwiSaver savings if they meet the requirements :
Must be in KiwiSaver for at least 3 years.
Must leave $1,000 in the account.
Must be buying their first home (or qualify as a previous homeowner in a similar financial position).
Key considerations:
All co-owners are jointly responsible for the property as a whole (you’re all on the title).
Your ownership share in the home may impact future loan applications or eligibility for government schemes.
Why This Matters for Our Communities
For Māori and Pacific people, collective approaches to wealth, property, and whānau responsibility are deeply rooted in our culture. Co-Own offers a modern approach to applying these traditional values within today’s housing market.
According to Kiwibank economists, if a household on median income could save 15% of their income, it would take over 11 years to save a standard deposit, and even longer for individuals. Co-Own offers an alternative pathway, allowing you to combine resources and share ongoing costs.
Key Things To Know
Maximum participants: Up to 4 people per application
Loan structure: Joint home loan where all co-owners are borrowers
Relationship status: You don’t have to be in a relationship to co-own
Legal protection: A property sharing agreement is strongly recommended
Professional advice: Independent legal and financial advice is essential
Limitations: Offset home loans may not be available for Co-own arrangements
Exclusions: Not available for business banking purposes
Making Co-Own Work Successfully
Before You Start:
Have candid conversations about money and expectations.
Consider seeking financial advice to create a clear and well-defined plan.
Discuss “what if” scenarios—selling, relationship changes, financial difficulties.
Ensure that all parties can demonstrate their ability to meet their loan obligations.
The Application Process:
Get conditional approval from a Kiwibank home loan specialist.
Property hunt together once you know your borrowing capacity.
Make offers knowing you’re all committed to the arrangement.
Finalise legal agreements before settlement.
Final Thoughts
Getting into the housing market can be challenging, but Co-Own by Kiwibank has proven to be an empowering option for those who want to move forward together since its launch in 2022. The product recognises that not everyone has a traditional partner to buy with and that pooling resources can make homeownership more achievable.
If you’ve got someone in mind you’d trust to own a home with—whether it’s whānau, friends, or other trusted individuals—have that conversation. It could be the first step to unlocking a future you thought was out of reach.
Remember, while Co-Own streamlines the process of buying with others, it’s not a decision to be taken lightly. All co-owners are responsible for the entire loan, so choose your co-owners carefully and get proper legal advice.
Need help reviewing your mortgage options or planning a co-ownership purchase? Reach out for a free chat. Let’s put the dream of homeownership back on the table—together.