Q+A Nick Smith interviewed by Jessica Mutch

Nick Smith: Changes to Homestart Scheme Will Make Homes More Affordable

Housing Minister Nick Smith says KiwiSaver HomeStart loans will help more home buyers into their first homes.

Speaking to Jessica Mutch on Q+A this morning, Dr Smith said from Monday, house price caps under the scheme would increase by $50,000 across the country, meaning the scheme could be used to buy houses worth as much as $650,000.

The deposit on such a home would now be made up from withdrawing $45,000 from their KiwiSaver account, being loaned another $20,000 from HomeStart for a new home ($10,000 for an existing home) and an additional 10 per cent for the deposit from the Welcome Home Loan scheme.

Dr Smith said $650,000 would buy people a “starter home”.

“I don’t think we’ll be creating the expectation that a person’s first home is going to be that gorgeous North Shore or Remuera home. It’s going to be a starter home.”

Dr Smith said the reason the Auckland housing market was overheated was that New Zealand is doing well and the country looks like a good place to live while the rest of the world looks “unstable, unsafe”.

HOUSE PRICE CAP INCREASES

* $600,000 to $650,000 in Auckland

*$500,000 to $550,000 in Wellington, Christchurch, Hamilton, Tauranga, Queenstown and Nelson-Tasman

*$400,000 to $450,000 in all other areas

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