Frequently asked questions
Why are you offering First Home TOGETHER … what’s the catch?
Police Credit Union is a membership organisation made up of Police and their families, not a money-making machine like the big banks. This means we can do things that make no sense if you’re all about making lots of money.
That’s why we created First Home TOGETHER with the aim of getting members into their first home by doing something different.
The only other organisations that offer something like this are Kāinga Ora (Housing NZ, a government agency) and charitable trusts like NZ Housing Foundation.
What’s in it for the Police Credit Union?
We do get a return on our Deposit Help if your house value increases.
The good news, in that case, is that the dollar value of both our shares in the house increase.
For example, if your house is worth $700,000 when you buy it and then increases a year later to $750,000, the dollar value of both our shares in the house increases, but the percentage remains the same – like below:
|Your share of house (90%)||$630,000||$675,000|
|Our share of house (10%)||$70,000||$75,000|
Who is eligible to join the Police Credit Union and take advantage of First Home TOGETHER?
If you're wondering whether your partner or whānau are eligible to join the Police Credit Union, you can find our eligibility criteria here.
What can I use for my Deposit?
Your deposit can be made up of one or more of the following:
- Your savings
- Police Super Scheme withdrawal
- KiwiSaver Scheme withdrawal
- First Home Grant
- Gifts from whānau
What if I come into some money and want to make a lump sum payment on my FHT home loan?
If you're considering making a lump sum payment on an FHT home loan portion, you'll need to have a chat with one of our Lenders first.
If I've got more than a 10% deposit, will the Police Credit Union still put in another 10% with Deposit Help?
No. The aim of First Home TOGETHER is to help you get to a 20% deposit shared between you and us. This means the total of your deposit and our Deposit Help will be a maximum of 20% of the house purchase price.
Where does the 10% interest-free Deposit Help come from ... are savers paying for this with a reduced interest rate on savings or term deposits?
The 10% interest-free Deposit help comes from the Police Credit Union's own equity, which has been built up over nearly 50 years. This means there's no change or reduction to the competitive rates we offer on savings or term deposits.
What happens if I don’t buy back Deposit Help within 10 years?
We’ll work very closely with you in our annual meetings to avoid this happening. If, after all this effort, it doesn’t happen, then the balance of Deposit Help will change from being interest-free and become a standard home loan instead.
Can I get the Deposit Help from Police Credit Union and then the home loan elsewhere?
No. First Home TOGETHER is a package, so both the Deposit Help and home loan must be with the Police Credit Union.
Can I use First Home TOGETHER if I've owned a home before?
You may still be eligible to use First Home TOGETHER if you've owned a home previously. You'll need to use your KiwiSaver or PSS savings for a deposit and be deemed to be in the same financial owner as a first home buyer by Kāinga Ora.
Read more about eligibility here.
Can I use First Home TOGETHER to purchase land?
No, First Home TOGETHER is for members wanting to purchase a first home.
How much can I borrow?
The amount you can borrow will depend on a few things, including:
- The deposit amount you have available
- Your household income and ability to afford a home loan
- The price of the property you want to buy
If you’re interested in First Home TOGETHER, we’ll let you know how much you may be able to borrow from us.
How do I buy back more of the Police Credit Union share?
You can increase your share of your home at any time by completing an application.
You’ll need to buy back a minimum of 10% of our share based on the value of your home after it's been revalued. You can read more about it here.
Am I allowed to do home improvements and renovations?
Yes, but you’ll need to obtain approval to make any renovations to the house while you have First Home TOGETHER with Police Credit Union.
However, day-to-day maintenance and repairs don’t require any approval from us.
What happens if my circumstances change and I need to move?
That’s no problem, you'll just need to talk to us when this happens.
Can I buy another house while I have First Home TOGETHER?
No. While you have First Home TOGETHER you are not permitted to own any additional properties.
How am I protected under First Home TOGETHER?
When you get First Home TOGETHER, part of the agreement will include shared ownership property conditions that will cover how the shared ownership works along with the rights, responsibilities, and obligations for you and for the Police Credit Union.
Can I transfer my ownership of the house while I have First Home TOGETHER?
That will depend on individual circumstances – you’ll need to talk to us first.
What happens at the Annual Review?
We will meet with you and review how you’re tracking financially and how you’re working towards owning more of your home and confirm that you’re meeting your obligations under First Home TOGETHER.
Can I buy back the shares in one lump sum?
Yes. The only limit on share buybacks is that they must be a minimum of 10% of our share of the home (after it’s been revalued).
What if I want to make a compliment or complaint?
You can send your compliment by secured bank messaging within Internet or Mobile Banking applications, or;
- By phone: 0800 429 000
- By email: email@example.com
- Via our website: policecu.org.nz/about-us/contact-us/
You can find information on making a complaint here.
Not sure how to structure your loan?
We've got a quick guide covering the different options you have to help you decide whether to fix or float!