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

 


Package to better support first home buyers

Hon Dr Nick Smith

Minister of Housing

11 August 2013      

Media Statement

Package to better support first home buyers
 
Housing Minister Dr Nick Smith today welcomed the Government’s decision to double the number of KiwiSaver deposit subsidies and treble the number of Welcome Home Loans to support first home buyers.
 
“This package is about helping thousands of kiwi families get into their first home by assisting them with a deposit and providing a guarantee for their mortgage,” Dr Smith says.
 
“We are changing the house price caps and income limits to increase eligibility for the KiwiSaver First Home Deposit Subsidy and Welcome Home Loans. These are expected to double the number of first home buyers receiving the subsidy from 4,700 to 10,000 a year and treble the number of Welcome Home Loans from 845 to 2,500 a year.”
 
The house price caps for Welcome Home Loans are currently $350,000 in high priced markets like Auckland, Wellington and Christchurch and $280,000 in other regions. For the KiwiSaver First Home Deposit Subsidy they are $400,000 in Auckland, Wellington City, Selwyn and Queenstown Lakes, and $300,000 for other regions.
 
The new price caps are being aligned for both Welcome Home Loans and the KiwiSaver First Home Buyer Subsidy to $485,000 for Auckland, $425,000 for Wellington City and Queenstown Lakes, $400,000 for Christchurch and Selwyn, $350,000 for Porirua City, Hutt City, Upper Hutt, Kapiti Coast, Tasman/Nelson, Western Bay of Plenty, Hamilton, Tauranga, Waimakariri, Thames Coromandel, and $300,000 for other regions.
 
The Government is also aligning the income limits of the two schemes. The KiwiSaver First Home Deposit Subsidy is currently limited to $100,000 for one and two buyers and $140,000 for three or more buyers. The Welcome Home Loan income limit is $85,000 for one or two buyers and $120,000 for three or more. The new income limits for both schemes will be $80,000 for a single person and $120,000 for two or more. Most deposit subsidies are for couples and the net effect of the changes is expected to increase eligibility by 11 per cent.
 
“The house price and income limits are about ensuring taxpayer assistance is targeted at families on modest incomes buying modest homes. The changes are needed to make them realistic and fair,” Dr Smith says.
 
“We are also changing and aligning the minimum deposit thresholds of the two schemes to 10 per cent. The current Welcome Home Loan minimum deposit threshold is 15 per cent over $200,000 whereas the KiwiSaver First Home Deposit Subsidy has no minimum deposit.
 
“It is reasonable to expect first home buyers to have saved some funds before getting other taxpayers support to buy a home. The minimum 10 per cent deposit includes any funds from the KiwiSaver First Home Withdrawal and Deposit Subsidy.
 
“These changes are particularly significant for Auckland where the unrealistic price caps were severely restricting access to the two schemes. The number of Aucklanders’ accessing the First Home Deposit Subsidy is expected to grow from 1,030 to 3,000 per year and Welcome Home Loans from 52 to 867 per year.
 
“This package of changes to support first home buyers complements the Government’s broader package of reforms underway to tackle the root causes of housing affordability including land supply, infrastructure costs, building material costs, building sector productivity, and compliance costs.”
 
The changes will take effect on 1 October. The cost of increasing the house price caps and income limits for the KiwiSaver First Home Deposit Subsidy is $46.6 million and $17.3 million for expanding Welcome Home Loans. The total cost of the package is $64 million over four years.
 
More information on how KiwiSaver can be used for buying a first home can be found at http://www.hnzc.co.nz/rent-buy-or-own/buying-your-first-home-with-kiwisaver
 
More information on Welcome Home Loans can be found at http://www.welcomehomeloan.co.nz/

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On First Time Voting (Centre Right)

For the next two days, I’m turning my column over to two guest columnists who are first time voters. I’ve asked them to explain why they were voting, for whom and what role they thought their parental upbringing had played in shaping their political beliefs ; and at the end, to choose a piece of music.

One guest columnist will be from the centre right, one from the centre left. Today’s column is from the centre right – by James Penn:

As someone who likes to consider himself, in admittedly vainglorious fashion, a considered and rational actor, the act of voting for the first time is a somewhat confusing one. I know that my vote has a close to zero chance of actually influencing the outcome of Parliament. The chance I will cast the marginal vote that adds to National or Act’s number of seats in Parliament is miniscule. The chance, even if I did, that doing so would affect the government makes voting on a strictly practical level even more spurious as a worthwhile exercise.

But somehow I have spent a large amount of time (perhaps detrimentally so, depending on the outcome of my upcoming exams) agonising over how to cast my first vote in a national election. More>>

 

Parliament Today:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Gordon Campbell:
On National’s Phantom Tax Cut Package

Hmmm. So National’s tax cuts package turns out to be one of those television advertisements that screams a headline promise – perfect skin! a youth tonic that works! – while in very small print there’s an out clause: special conditions may apply. More>>

ALSO:

Water: New Marine Reserves On West Coast Opened

Five new marine reserves were officially opened by Conservation Minister Dr Nick Smith on the West Coast of the South Island to protect a range of marine ecosystems for conservation, science and recreation. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news