National values home ownership – it brings security to families and enhances communities. The Government has a wide programme of work underway to improve housing supply and affordability.
Housing accords are freeing up more land faster, and we are cutting building and compliance costs, reining in development contributions and improving sector skills and productivity.
In addition, the Government’s responsible economic management is keeping mortgage interest rates lower for longer, which is a significant benefit for first home buyers.
The next step in our plan to help more New Zealanders into home ownership is about to come into effect. This is exciting news for young families who need a helping hand to get on the property ladder.
From 1 April this year, National’s package to double support for first home buyers and help tens of thousands of young New Zealanders into home ownership will kick in.
The KiwiSaver Home Start grant is being doubled-up to $20,000 for a couple purchasing a newly built home, and up to $10,000 for a couple purchasing an existing home.
The number of people receiving a government grant to buy a first home is also doubling to 20,000 a year.
Buying a home is often the biggest single purchase a person makes in their lifetime. Buyers should be able to use as much of their own savings as they need to. That’s why we areenablingfirst home buyers to access a greater portion of their KiwiSaver savings to put towards a house deposit.
First home buyers will be able to withdraw all of their savings except the $1000 kick-start – this includes employer contributions and the member’s tax credit.
Another part of our package to assist first home buyers makes the Welcome Home Loan scheme more accessible. More people will be able to access these government-guaranteed loans, requiring only 10 per cent deposits, as the house price caps are being aligned with the KiwiSaver Home Start Grant.
Housing New Zealand will administer Home Start grant applications. The level of assistance available to first home buyers varies depending on how long and how much they have been contributing to KiwiSaver, their income level, and what region they live in.
As well as helping young families, this package of assistance for first home buyers has been designed to encourage developers to build more affordable homes. It complements other work the Government is doing to address the housing challenge.
National is working hard to ensure more New Zealanders are able to own their own home.