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

Parliament Today: State Opening Of Parliament

The House sits at 10.30am today before MPs are summoned to hear the Speech from the Throne in the Legislative Council Chamber.

The speech delivered by the Governor-General on the Government’s behalf outlines its priorities for this Parliament.

After this MPs will return to the House for the presentation of petitions and papers and the introduction of any bills.

The Government has five notices of motion on the Order Paper which can be debated. These relate to relating to the appointment of the Deputy Speaker, Assistant Speakers, the reinstatement of business in a carryover motion and one on “Entities to be deemed public organisations”. More>>

 

Labour: Review Team Named, Leadership Campaign Starts

Labour’s New Zealand Council has appointed Bryan Gould as Convenor of its post-General Election Review. He will be joined on the Review Team by Hon Margaret Wilson, Stacey Morrison and Brian Corban.

ALSO:


Roy Morgan Poll: National Slips, Labour Hits Lows

The first New Zealand Roy Morgan Poll since the NZ Election shows National 43.5% (down 3.54% since the September 20 Election). This isn’t unusual, National support has dropped after each of John Key’s Election victories... However, support for the main opposition Labour Party has crashed to 22.5% (down 2.63% and the lowest support for Labour since the 1914 NZ Election as United Labour). More>>

ALSO:

In On First Round: New Zealand Wins Security Council Seat

Prime Minister John Key has welcomed New Zealand securing a place on the United Nations Security Council for the 2015-16 term. More>>

ALSO:

TPP Leak: Intellectual Property Text Confirms Risk - Jane Kelsey

The US is continuing its assault on generic medicines through numerous proposed changes to patent laws. ‘These are bound to impact on Pharmac if they are accepted’, according to Professor Kelsey... Copyright is another area of ongoing sensitivity... More>>

ALSO:

RMA: Smith Plans Reform To Ease Urban Development

Newly appointed Environment Minister Nick Smith has announced Resource Management Act reform to foster urban development, where high land prices and expensive resource consents are blocking efforts to provide affordable housing. More>>>

ALSO:

Gordon Campbell: On New Zealand getting involved (again) in other people's wars

Apparently, the Key government is still pondering how New Zealand will contribute to the fight against Islamic State. Long may it ponder, given the lack of consensus among our allies as to how to fight IS, where to fight it (Syria, Iraq, or both?) and with whose ground troops, pray tell? More>>

ALSO:

Gordon Campbell: On child poverty, and David Shearer’s latest outburst

The politicisation of (a) the public service and (b) the operations of the Official Information Act have been highlighted by the policy advice package on child poverty that RNZ’s resolute political editor Brent Edwards has finally prised out of the Ministry of Social Development. More>>

ALSO:

Gordon Campbell: On the government’s review of security laws

So the Key government is about to launch a four week review of the ability of our existing legislation to deal with “suspected and returning foreign terrorist fighters, and other violent extremists.”

According to its terms of reference, the review will consider whether the SIS, GCSB and Police are sufficiently able right now to (a) investigate and monitor suspected and returning foreign terrorist fighters… More>>

ALSO:

Labour Davids: Lisa Owen Interviews David Shearer

David Shearer still mulling whether to stand for Labour leadership but says his family doesn’t think it’s a good idea. Declares that it will be “incredibly divisive” for the Labour caucus if David Cunliffe returns to the role of leader. More>>

ALSO:

Taser Use & False Evidence: Timaru Officers "Failed To Follow Good Policing Practice"

The Authority found that even if Mr Reuben’s contact with the officer was deliberate it amounted to only a minor assault. While it found the use of the OC spray was justified, the use of the Taser was not a proportionate response... More>>

ALSO:

Little Surprise: Andrew Little To Contest Labour Leadership

I have decided to contest the Labour Party leadership. There are three immediate issues to deal with: creating greater cohesion across the caucus, rebuilding the relationship between caucus and the Party and, most importantly getting the process under way to listen to the voters who have abandoned us... More>>

ALSO:

Two Fewer Votes In Recount: "Positive Result" - Harawira

When I applied for a recount of the votes from the Tai Tokerau election, I made it clear that this application was not aimed at overturning the election result, but ensuring that all votes cast by Maori were treated with due respect, regardless of whether those votes are for Labour, Maori Party or MANA. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news