Good news for those looking to buy their first home! The Government has made a number of adjustments to the First Home Grant and the First Home Loan, that will make it easier for those looking to get on the property ladder. These changes came into play on May 15th.
First up, there have been changes to the house price caps to put them in line with current market values. This is the highest priced home you can buy and still be eligible to receive the First Home Grant. Each region around the country has a different price cap, and you can find a detailed list here
For the Christchurch Urban Area (which includes the Waimakariri District, Christchurch City, Selwyn District), the price cap for an existing home is $575,000 and a new build is $775,000.
Ashburton, Timaru, and Waimate Districts now sit at $400,000 for an existing property and $650,000 for a new build
There have also been changes to the insurance premiums as part of the First Home Loan. This loan is granted by selected banks and is underwritten by Kāinga Ora. It lets first home buyers only need a 5% deposit towards their home, rather than the standard 20%
The Lenders Mortgage Insurance premiums for these loans have now been reduced from 1% of the total loan to 0.5%. This means borrowers will pay much less towards the insurance premium, and will help with relieving some of the financial pressure from rising interest rates and living costs.
If you are looking to buy a first home, then get in touch and we can discuss what products and options are available. There are now a number of government incentivised programmes designed to help first home buyers, and we can talk you through these and if you qualify. We find many people may be in a stronger position than they think when it comes to buying a home, so even if you feel you are a while off, we encourage you to get in touch - owning a home may be closer than you think!
Contact our mortgage advisors today on 0800 005 676