On October 1, changes to the New Zealand Government’s KiwiBuild, First Home Loan and First Home Grant initiatives came into force to help more Kiwis get into their first home.
KiwiBuild was launched in 2018, aiming to construct 100,000 affordable homes over 10 years. The government has now revised the initiative, announcing changes to other first home buyer programs in the process.
So what does this mean for you?
For first home buyers, a deposit is the first hurdle to overcome. To assist, the minimum deposit needed to qualify for the government-backed mortgage scheme ‘First Home Loan’ has now dropped from 10% to 5% of the home value.
With the help of the government’s savings initiative KiwiSaver, first home buyers may be eligible for a First Home Grant of up to $10,000 for their deposit.
Before October this year, if you purchased a home with three or more people, your collective First Home Grant would be capped at $20,000.
This cap has now been lifted, meaning you can pool a deposit together with friends and family to achieve your property goals sooner.
To help more Kiwis get into the market, the criteria for assistance has broadened.
Previously, KiwiBuild buyers had to commit to living in their new home for three years. Now, for one-bedroom and studio buyers, you only need to commit to one year of residency before moving out and onto your next property adventure.
These changes provide a golden opportunity to get you owning your first home sooner. To find out more about how these changes can help you, reach out to a Mike Pero Mortgage Adviser today.