Local MP welcomes more help for first home buyers

Press releases
Monday, August 1, 2016

Todd Muller MP welcomes the news that the Government has increased the income and house price caps of the KiwiSaver HomeStart scheme from today.

“This increase will help locals buy their first home by keeping the scheme tagged to the national median house price, said Mr Muller.

“KiwiSaver HomeStart is about helping first home buyers pull together a deposit with a grant of up to $10,000 for an existing house and $20,000 for a new home. By adjusting the income and house price caps to take into account increases in both since 2014, it achieves its objective of helping middle income earners into a modest home.

“The income caps have now increased from $80,000 to $85,000 for a single person and from $120,000 to $130,000 for a couple.

“The national median house price has risen $50,000 since the scheme began. As a result we are deliberately increasing the house cap for new homes by an additional $50,000 to help drive growth in new residential construction.

“For Tauranga is the house price cap is lifted to $500,000 for an existing home  and a cap of $550,000 for new home.

“These increases in the income and house price caps will also be applied to the Welcome Home loans. These loans enable first home buyers to buy with a 10 per cent deposit and because they are government guaranteed are exempt from the loan-to-value (LVR) ratio limits from the Reserve Bank.

“I understand the value in house ownership because it helps bring security to individuals and their families. That’s why the National-led Government has a wide-ranging programme aimed at improving housing supply and affordability.

“KiwiSaver HomeStart and the Welcome Home Loan Scheme are just part of the Government’s comprehensive plan to meet New Zealand’s housing challenge. We are reforming New Zealand’s planning system and building laws, investing in record numbers of apprenticeships, supporting councils with infrastructure costs and directly building homes through the Crown land housing programme

“All these measures will pay growing dividends over time and ensure that our country has the quantity and quality of homes to meet the needs of our growing population nationwide and here in the Bay,” said Mr Muller.

ENDS

Media contact: Shannon Stewart (04) 817 9431