Photo: RNZ / Nate McKinnon
Prospective first home buyers trying to use a Kāinga Ora scheme to get on the property ladder are fast running out of time.
The First Home Partner scheme stopped accepting new applications in September because of huge interest in the programme.
Now, buyers who have already been approved are in a race to get a piece of the action.
The state housing agency this year made it easier for people to get into the first home partner scheme, loosening eligibility in August by lifting the income cap and removing the only new houses rule.
Six weeks later, Kāinga Ora announced it would no longer take any more applications because of unprecedented demand.
Late in October, an update was sent to those who had already been approved.
"We [Kāinga Ora] confirmed you could continue to search for a home, and we would assess sale and purchase agreements on a case-by-case basis until available funding is committed.
"This e-mail is to inform you that we are now approaching our funding limit for processing agreements. We expect to reach our funding limit within the coming weeks based on current demand, this is likely to be during November."
Under the scheme, Kāinga Ora buys a stake in the first home buyers' property, whichever is lowest of 25 percent or $200,000.
Five hundred and fifty deals were done before eligibility criteria eased, in the months since a further 148 have been done.
The dwindling funding has prospective buyers worried.
Emma is hoping to get a house where she can live with her partner and one-year-old child. But the possibility of money running out soon is piling on the pressure.
"We're quite grateful to be approved, but now we're desperately trying to get a house and get that side of it all approved before the funding runs out, so it's quite stressful."
Mortgage adviser Stuart Wills has a few clients in a similar position unsure if they will get the money.
"People just don't know, and that can be quite frustrating.
"The other, probably more negative thing I think is some people are just trying to rush in and buy a property because they know that it could vanish. Because of that, they're probably not necessarily going to do the due diligence the way they should."
Wills said Kāinga Ora has other home ownership schemes like First Home Loans, which may be a better option for some.
The housing agency underwrites the loans, which are issued by selected banks and other lenders. It means people can borrow with a deposit as low as 5 percent.
But Wills said people were put off by the requirement that they must have been in the same job for 12 months or in the same industry for two years.
"They go well, I don't fit that criteria, but I fit the First Home Partner's one, so I'll go there. They should never have been going to First Home Partner, they should have been in the First Home Loans. But the policy made it too hard for them."
Kāinga Ora said First Home loan applicants need to show they have a sustainable income, which is unlikely to change.
In the meantime, Emma has found a property and is trying to get funding approved for it.
If that did not happen, then it was back to square one.
"We're currently living with my parents to save as much money as possible. So probably I will have to stay here a bit longer to save. But then that's also not easy, so we'd probably just have to end up renting, which is pretty disappointing."
On Tuesday, Kāinga Ora announced it would only be accepting Sale and Purchase Agreements until Thursday, but it could close off sooner.
"Due to continued high demand we expect to reach our funding limit for First Home Partner later this week. Eligible applicants can continue to submit Sale and Purchase Agreements to Kāinga Ora, and these will be assessed in the order in which they are received, while there is funding still available.
"However, we will not be accepting any agreements submitted to Kāinga Ora after 5pm, Thursday 9 November.
"It is important to note our funding limit may be reached earlier than Thursday, as it depends on the daily number of Sale and Purchase Agreements we receive."
