Changes to the First Home Products come into effect on 1 April 2021.
This includes the First Home Grants and First Home Loans.
What Are The Changes?
The changes recently announced include:
- lifting the house price caps for both new properties and existing properties in those places where access to a First Home Grant or a First Home Loan has become increasingly out of reach of first home buyers.
- raising the income caps for single people and more than two people which will also mean more people are able to access these products. The income cap for a single person will be raised to $95,000, and for two or more people it will be $150,000.
The idea is more families will be helped into their first home.
House Price Caps Now
From 1 April 2021, the First Home Grant and First Home Loan house price caps will be:
|Region||Existing Property Cap||New Property Cap|
|Wellington City, Hutt City, Upper Hutt City, Porirua City, Kāpiti Coast District||$550,000||$650,000|
|Nelson City, Tasman District, Tauranga City, Western Bay of Plenty District, Hamilton City, Waipā District, Hastings District, Napier City||$525,000||$600,000|
|Christchurch City, Selwyn District, Waimakariri District||$500,000||$550,000|
|Waikato District, Dunedin City||$425,000||$550,000|
|Rest of New Zealand||$400,000||$500,000|
These changes to the First Home Products are designed to help first home buyers.
The idea was to increase the price caps to make more houses available to first home buyers, and particularly those that are reliant on the First Home Grants to help with the deposit and the First Home Loan which allow you to buy a home with a 5% deposit.
These changes will not help all first home buyers and the Government has been slammed for not making more dramatic (transformational) changes.