The first thoughts most people have when purchasing their first home is do I have enough for a deposit and am I eligible for KiwiSaver or HomeStart Grant?
Home Start minimum deposit lowered to 5%
Well great news for all you first home buyers, from 1 October 2019 you will only require 5% deposit to be eligible for the Housing New Zealand Home Start Grant. The current eligibility criteria provides that you must have been regularly contributing the minimum amount to KiwiSaver (3%) for three years, the property falls within a price cap, and you meet the income restrictions.
Price caps
The income restriction provides that a borrower must have a maximum individual income of $85,000.00 or a maximum household income of $130,000.00.
The price cap is dependent on the location and type of property. Purchasing a newly built property (within the last 12 months) outside of Auckland, Queenstown and the other main cities can be up to $500,000.00.
For an existing property the house cap is slightly less with houses outside of Auckland Queenstown and the other main cities being up to $400,000.00.
Other requirements
Other requirements include that you must agree to live in the house for at least 6 months from the date you purchase the property or if it is a new build, 12 months from the date the code of compliance certificate has been issued.
GOING, GOING SOLD…. If you are a first home buyer and not sure where to start or have you found the perfect home but are overwhelmed with how to proceed, don’t panic. We can guide you through the process in a timely and stress free manner.
