Changes To KiwiSaver HomeStart Grant

Income

The Government has increased the existing income threshold for first home buyers from $80,000 (for one buyer) and $120,000 (for two or more buyers) to $85,000 (one buyer) and $130,000 (two or more buyers).   It is the income that is earned over the 12 months prior to the application for the grant that is assessed.

House Price

The existing house price caps have been increased by $50,000. This means that the maximum purchase price of a property in Canterbury (excluding the Hurunui District) will be $500,000 for existing/older properties and $550,000 for new builds.  The maximum purchase in the Hurunui District for existing/older properties and new builds is now $400,000 and $450,000 for new builds.

Previous Home Owners

Previous home owners who are deemed to be in the same financial position as a first home buyer will also benefit from the increased income and house price threshold.  A previous home owner’s realisable assets can be no more than 20% of the regional house price cap for existing/older properties.  This applies regardless of whether the property you are purchasing is an existing property or a new build.  As a result of these recent changes, a previous home owner can have more realisable assets than under the previous criteria.

Welcome Home Loan

The Welcome Home Loan allows first home buyers to buy a property with a 10% deposit instead of the normal 20% deposit requirement required from the Reserve Bank.  The increases to the income threshold and house price caps also apply to this scheme.

Conclusion

The changes to the income and house price caps reflect the increases in property prices since the introduction of the scheme.  These changes may make buying your home easier.

We would be pleased to assist you with the purchase of your home.  If you have any queries regarding the above changes, please contact us on (03) 377-4470 for a no-obligation discussion.  

Authors: Chris Boivin and Natalie Kong

The above information is of a general nature only. You should contact our firm for advice relating to your specific circumstances