National looks to boost first home buyers grant

National has officially kicked off its 2014 election campaign with a new package of measures aimed at helping first home buyers.

John Key says National will get around 90,000 people into their first home. Source: 1 NEWS

The package unveiled at the National Party's campaign launch in South Auckland today will cost around $218 million over the next five years.

It includes replacing the KiwiSaver First Home Deposit Subsidy with a KiwiSaver Home Start Grant. National says this will double the support given when buying a new home.

It will also enable larger KiwiSaver First Home withdrawals by including the member's tax credit.

In addition, National will expand the eligibility for Welcome Home Loans by aligning the house price caps with the new KiwiSaver Home Start grants.

Price limits for KiwiSaver HomeStart and Welcome Home Loans will be $550,000 in Auckland, $450,000 in Wellington and Christchurch, and $350,000 for the rest of the country.

National says this policy will roughly double the number of people receiving a Government grant to buy their first home from $10,000 to $20,000.

Currently a couple, after five years in KiwiSaver, could get $10,000 through the KiwiSaver grant.

Under the new Home Start policy, a couple in KiwiSaver could get $20,000 for a new home.