On the 1st April 2015 a series of changes kicked in for first home buyers with the introduction of KiwiSaver Home Start. The replacement first home buyer packages have been designed to help people achieve the dream of buying their own home.
The three main changes that came into effect that are outlined below.
1. An increased grant for newly built homes
The KiwiSaver First Home Deposit Subsidy was replaced with a KiwiSaver HomeStart Grant which doubles the contributions for buying newly built homes.
Like the current subsidy, KiwiSaver Home Start will continue to provide eligible first home buyers with a grant of up to $5,000 for individuals and up to $10,000 for couples to put towards a deposit for an existing home.
In addition, the new KiwiSaver Home Start grant provides eligible first home buyers with a grant of up to $10,000 for individuals and up to $20,000 for couples to help with the costs of building or purchasing a brand-new home.
A new home can include:
A vacant residential section on which a new home will be built
A house and land package purchased off the plans
A new apartment purchased off the plans
A newly built property, that has received its building code compliance certificate less than six months before the date of the buyer’s application
2. Larger KiwiSaver withdrawals will be possible
Previously, first home buyers can withdraw all funds from their KiwiSaver account except the member tax credit and the government’s $1,000 kick-start contribution.
The new changes allow first home buyers to also withdraw the member tax credit which is the Government’s contribution to members’ KiwiSaver savings.
3. Increased house price caps expand eligibility
The income thresholds for grants and First Home Loans have changed from 01.04.2021 income caps have lifted to…($95,000 for a single buyer or $150,000 for 2 or more people combined income) and house price caps have changed as well, they are now...
The house price caps for grants and First Home Loans vary for each region:
Region Existing Property Cap New Property Cap
Auckland $875000 - Existing and New Builds
Queenstown-Lakes District $875,000 to $925,000 Existing and New Builds
Wellington City, Hutt City, Upper Hutt City, Porirua City, Kāpiti Coast District $750,000 to $925,000 Existing and New Builds
Nelson City, Tasman District, $650,000 to $875,000 Existing and New Builds
Christchurch City, Selwyn District, Waimakariri District $575,000 to $775,000 Existing and New Builds.
Dunedin City $500,000 to $675000 Existing and New Builds
Invercargill $400,000 to $650,000 Existing and New Builds
There is no house price cap for first home loans if you don’t want to use the first home grant to help towards your deposit.