Budget 2022 housing: Government increases first home buyer grant caps in response to dramatic price jumps

“We are increasing the household price tag caps for the To start with Residence Grant to align with decreased quartile market values for new and existing homes. This recognises the improvements in property price ranges more than the past yr,” Housing Minister Megan Woods claimed.

“We are also eliminating residence selling price caps totally from the Initial House Loan, to provide a greater selection of houses for prospective first property consumers. Cash flow caps and loan company necessities are ample to ensure that the Very first Residence Financial loan is employed by potential buyers who will need help for a 1st dwelling. 

“We estimate that these changes, along with other adjustments to the eligibility conditions, will aid thousands much more initial household purchasers, with funding available for somewhere around 7,000 additional Initial Residence Grants and 2,500 additional Very first Household Financial loans readily available each yr.”

The property cost and money caps will be reviewed every six months to ensure they’re up to date. The variations to the 1st Hom Grant introduced on Thursday appear into impact from Might 19, even though the changes to the Initial Dwelling Mortgage start on June 1.

Woods also introduced he Kāinga Whenua Bank loan cap will also be enhanced from $200,000 to $500,000 “to supply extra option and options for people today creating, relocating, or getting a household on whenua Māori”.

Amongst the other improvements: 

• Introduction of an ‘individual earner with dependents category’ with an profits cap of $150,000 ­ 

• Changing the KiwiSaver requirements to minimize the threshold amount of frequent price savings to entry the grant ­ 

• Permitting relocatable properties that have received a Code of Compliance certification in the last 12 months to qualify as new properties ­ 

• Enabling associates of Progressive Home Ownership hire-to-obtain strategies to obtain the new develop grant