The Government has increased the income and house price caps on the KiwiSaver scheme to help New Zealanders buy their first home. The KiwiSaver HomeStart is about helping first home buyers to pull together a deposit with a grant of up to $10,000 for an existing house and $20,000 for a new home.
The income caps will increase from $80,000 to $85,000 for a single person and from $120,00 to $130,00 for a couple. This means that an individual buying an existing home in Auckland can now receive HomeStart Grant of up to $5,000 when buying existing home up to value of $600,000 (previously $550,000), and if they are building new home they can access HomeStart Grant of up to $10,000 when building home up to value of $650,000 (previously ($550,000). A couple building a new home up to $650,000 could be eligible for $20,000 HomeStart Grant.
Housing Minister Nick Smith said “these changes are about deliberately screwing the scrum in the housing market in favour of the first home buyers. A couple on an average income each of $60,000 could potentially afford a $650,000 home, by withdrawing $45,000 from five years invested in KiwiSaver, getting a $20,000 HomeStart grant for buying a new build, and being eligible for a Welcome Home Loan with a 10 percent deposit. ” If you would like any advice about applying for a grant or mortgage rates contact Haven on 0800 700 699
House Price Caps Increases:
*$600,000 to $650,000 in Auckland
*$500,000 to $550,000 in Wellington, Christchurch, Hamilton, Tauranga, Queenstown and Nelson-Tasman
*$400,000 to $450,000 in all other areas
Content supplied by Minister of Building & Housing & Q+A
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