Breaking the rental cycle — a real rent-to-own story

Like many people, Holly and her husband had some debt, and she worried about how that would look on paper. "People start making up these scenarios in their head like, ‘Oh my gosh, how's this going to look?’ It feels really exposing," said Holly.

On top of that, homeownership had never been the norm in her family. "It was something other people did — not people in our lives. No one taught us how mortgages worked, how to save for a deposit, or even where to start." Then there was the mountain of paperwork. Filling out financial statements, proving income, and navigating the application process felt overwhelming.

“But then I reminded myself — if I don’t at least try, we’ll be in the same position five years from now," recalls Holly. Then came the ‘sweat equity’ — 500 hours of volunteer work. A huge ask for a working family, but Holly and her crew tackled it together. They sorted donations at Habitat for Humanity’s ReStore, coached sports teams, and even fired up the BBQ for free sausage sizzles. One step at a time, they got it done. "Some people leave it all to the last year, but I didn’t want to do that. Just like saving for a house, little by little, it all adds up," explains Holly.

The day Holly got the call confirming they’d been accepted; she broke down in tears.

"It was such an achievement. Now, my kids get to see that it's possible. They can say, 'If Mum and Dad did it, we can too,'" says Holly.

Now, three years into the five-year target, Holly and her family pay rent for their new home at a reduced rate while a portion of their payments goes toward their deposit. Their rent is based on 30% of their household income.

At the end of the five-year period, they will need to secure a mortgage. But Habitat makes this step much easier. Since the home’s price is locked in from the start, Holly’s whānau isn’t affected by rising market prices. Plus, because house values usually go up over five years, their deposit often ends up bigger than expected.

"Habitat have given us the confidence that we can do this. They’ve taught us how to manage debt, what banks look for, even inflation. By the time we get to the bank, we’ll have a strong financial history and a decent deposit," explains Holly.

When they hit all their milestones, they’ll be ready to take out a mortgage and officially own their home.

"It’s been a journey of learning, budgeting, and making sure we stay on track," she says. "Before, I didn’t think much about money. Now, I’m always thinking about how we can build on what we’ve started."