First Home Grants - Going, going, gone!

On Wednesday 22 May 2024, the Government announced that they will be discontinuing the Kāinga Ora - First Home Grant Scheme. That same day, the Government announced that no new applications for the Grant would be accepted by Kainga Ora. The removal of the First Home Grant has taken immediate effect.

The First Home Grant was first introduced in 2010 with the intention to help kiwi first home buyers enter the property market. A first home buyer could receive up to $5,000 for an existing home or $10,000 for a new build subject to income and property house price caps. In the last year alone (Feb '23 – Feb '24) 42% of first home buyers who entered the market utilised the Grant to purchase their first home.  

So, what does this mean for first home buyers in today’s market?

If you are looking to buy your first home, you will still be eligible to access your Kiwisaver First Home Withdrawal, but unfortunately, you will not be able to apply to access the first home grant.

If you currently hold a pre-approval from Kainga Ora for a first home grant, check the expiry date! A pre-approval is valid for 6 months from the date the application was approved and there will not be an opportunity to reapply after 22 May 2024.

Those with an existing application will also still be entitled to access the grant.

If you are a first home buyer and have any legal questions about buying a house get in touch with our specialist Property Law team who have expertise in a range of property matters and can help you. Contact the SRB team today with your questions and queries.

Disclaimer

The above information is of a general nature only.  The information in this article does in no way constitute legal advice and all readers should contact a law firm for advice relating to their specific circumstances.