Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Home ownership mortgage programme announced


Home ownership mortgage insurance programme announced

Housing Minister Steve Maharey today announced a two-year Government initiative with Kiwibank to make access to home ownership easier for low to modest income earners.

From September 2003, people earning up to and including $50,000 a year, or up to and including $100,000 if there are more than two main sources of household income, may be able to get a home loan. They’ll also need a good credit history, be able to afford repayments and meet other conditions.

Steve Maharey said those who qualify won’t need a deposit if buying a house up to $100,000, and only a 5% deposit if buying a house over $100,000, and that money could have been gifted.

“This is possible because, through Housing New Zealand Corporation, we’ve developed and are subsidising a mortgage insurance programme to the value of $5.3 million. This will enable Kiwibank to reduce the risk of lending to people with little or no deposit. “For many people, such as Housing New Zealand Corporation tenants paying market rent, home ownership is only just out of reach.

“Either their income is just slightly too low, or they aren’t able to save a deposit. Yet once in a house they would be able to manage the repayments and keep a reasonable standard of living.

“The partnership with Kiwibank aims to make access to home ownership easier for these people.

"We will therefore be having an initial focus on HNZC market rent tenants and current applicants on the waiting list for rental housing for whom home ownership may be a viable option.

“As part of the initiative, people will have access to information about the costs and responsibilities of owning a home, and once they have their own home, Kiwibank will keep in contact to provide ongoing advice and support.

“We chose Kiwibank for this trial because it’s readily accessible throughout New Zealand. It was a commercial decision by Kiwibank to enter into the trial.

“Trialling for two years will allow us to test the initiative on a small scale to find out how successful it is before we expand it to other lenders,” Steve Maharey said.

Steve Maharey said state house tenants would not be able to buy their homes, and the initiative won’t help everyone who wants to buy a house.

Kiwibank is expected to approve about 1,800 loans as part of this trial.

The trial starts in September 2003 and will run for two years.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election