In an attempt to tackle growing housing unaffordability, the Government today has announced it will extend its help for first-home buyers.
Within the package announced today, the eligibility criteria for the First Home Grant and First Home Loan has been amended.
The PM says the Government’s housing package is geared to make it easier for Kiwis to own their own home.
Eligibility criteria for the two schemes are the same, but a person would need to have made consistent KiwiSaver contributions for three to five years to get a grant. Changes will take effect from April 1 this year.
Single buyers can now earn up to $95,000 and get financial assistance, up from $85,000. For two or more buyers of a single property, the cap has been lifted from $130,000 to $150,000 (combined income).
Price caps on the value of properties people can buy in different regions using the schemes has also been lifted.
The First Home Grant gives a person $5000 towards purchasing an existing property, or up to $10,000 for a new one. People buying a house together can combine grants towards the purchase of one property.
To be eligible for a First Home Grant, a person needs to have been making regular KiwiSaver contributions for three to five years and make an application through Kāinga Ora.
A First Home Loan allows a first-home buyer to only need a five per cent deposit.
The loans are issued by selected banks and lenders, and are underwritten by Kāinga Ora. This allows lenders to give people loans that would otherwise be outside their lending standards.
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