More people to be eligible for Kiwibank In Reach home loans

More people will be eligible for a Kiwibank In Reach home loan as a result of changes to eligibility criteria, Housing Minister Steve Maharey said today.

Kiwibank In Reach is a two-year mortgage insurance trial, in partnership with Housing New Zealand Corporation, to make access to home ownership easier for low to modest income earners.

Changes just approved to the eligibility criteria mean that no-deposit mortgages can now be approved for homes valued at $150,000 (up from $100,000) and the income threshold for one or two people in the same household has been increased from $50,000 to $55,000. Applications are subject to Kiwibank’s lending criteria.

Steve Maharey said the changes to the criteria recognise that the housing market has changed since the trial began six months ago.

“With the current demand for housing in some areas people have found it difficult to find a home under $100,000, so we have decided to insure no deposit mortgages up to a value of $150,000.

“We are also increasing the income threshold for one or two people in the same household from $50,000 to $55,000.

“To date 320 In Reach applications have been approved, with 129 families now settled into their first home across the country. The average loan value is $104,000. Kiwibank is expected to approve about 1,800 loans as part of the two-year trial.

“People who had previously missed out on the Kiwibank In Reach home loan may now be eligible and should contact Kiwibank on freephone 0800 272 278,” Steve Maharey said.

More information about In Reach loans is available at: http://www.kiwibank.co.nz/products/kiwibankinreach.stm

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