Increased support for first home buyers

The government has recently announced some important updates to the support options available to first home buyers.

These changes are a welcome relief for Kiwis looking to take their first steps onto the property ladder.

Changes to the First Home Grant

The First Home Grant helps eligible Kiwis into their first homes sooner by providing up to $10,000 of financial support towards their first deposit.

However, increasing property prices have made it difficult for buyers to qualify, due to the price caps on properties the funds can be used towards.

Thankfully, price caps have increased in many regions across the country to better reflect the current housing market. Updates to major urban areas include:

And, a new income cap category for ‘individual buyers with dependents’ has also been introduced with an income cap of $150,000, allowing more support for sole providers.

Changes to the First Home Loan scheme

Under the previous version of the Kāinga Ora First Home Loan scheme, eligible applicants could buy a home with a deposit as low as 5% – but there were house price caps in place.

Now, to provide first home buyers with access to more options, Kāinga Ora has removed caps on house prices, meaning the value of the property will no longer affect eligibility.

However, income caps and lender requirements still apply. Like the First Home Grant, a new income cap category for ‘individual buyers with dependents’ has also been added.

For information tailored to your specific circumstances, contact your Mike Pero Mortgage Adviser today.