Nov 21

Will you be qualified for the Government’s Kāinga Ora First Home Loan Scheme?

Will you be qualified for the Government’s Kāinga Ora First Home Loan Scheme?

Get in touch with us to help you to get your first home 😊

Kainga Ora First Home Loan Scheme

The Government has announced the following changes to the Kāinga Ora First Home Loan Scheme. These changes were effective 1 June 2022. Details include –

  1. Removal of the house price caps altogether (previously there were regional house caps applied which meant customers were restricted to certain home values)
  2. A new income cap category introduced for ‘individual buyers with dependents’, with an income cap of $150,000. The income cap for ‘Individual buyers without dependents will remain at $95,000
  3. Now that house price caps have been removed, there may be the opportunity to assist more customers who:

– Have a minimum 5% deposit

– Have an income of less than $95,000 for an individual borrower or $150,000 for an individual borrower with dependents

– Have an income of less than $150,000 for two or more borrowers

– Are a first home buyer or second-chance buyer

– Are a New Zealand Citizen, Permanent Resident or a Resident Visa holder who is ‘ordinarily resident in New Zealand’

– Have been in the same employment for 12 months or the same industry for two years

First Home Grant

– After 3 years of contributing to one or more KiwiSaver schemes, first home buyers meeting eligibility criteria (income level, house price caps), can benefit from the First Home Grant of $1,000 for each year they contribute to KiwiSaver, up to a maximum of $5,000.

See www.kiwisaver.govt.nz for eligibility criteria.

– The First Home Grant is doubled for newly built homes (maximum of $10,000). The First Home Grant can be accumulated for multiple buyers if they both qualify.

– Where a customer has been a home owner previously ‘second chancers’ and find themselves in the same position as first home buyer, then they may be eligible for the First Home Grant as well. They must meet Kāinga Ora – Homes and Communities qualifying criteria and a copy of approval must be provided confirming that the customer’s KiwiSaver funds can be made available towards their house purchase.

See www.kaingaora.govt.nz for eligibility criteria.