HOME GRANTS
GOVT NEEDS TO BETTER PROMOTE ITS FIRST-HOME BUYER SUPPORT "The Government estimates recent changes to First Home Grants and First Home Loans will help thousands more first-home buyers every year. However, most Kiwis don’t even know these opportunities exist. There must be more promotion,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow the
deposit to get finance due to the
Auckland (from $700,000 to
Government’s Budget 2022
Reserve Bank’s Loan-To-Value
$875,000), Hamilton ($600,00 to
announcement on 19 May aimed at
Ratio restrictions (LVRs). Further,
$725,000), Tauranga ($600,000 to
assisting more first-home buyers.
banks have been conducting
$875,000), Wellington ($650,000 to
It increased the house price caps for
ultra-conservative assessments
$925,000), Christchurch ($550,000
the First Home Grant and entirely
on borrowers, largely because
to $750,000) and Queenstown
removed house price caps from the
of Credit Contract & Consumer
($650,000 to $925,000).
First Home Loan.
Finance Act (CCCFA) requirements.
“Coming up with a sufficient
“Raising the price caps for the loan
but so too are opportunities for
deposit is often the big problem so
scheme opens the door to first-
first-home buyers this winter.
that’s what these two schemes help
home buyers with a five percent
Thousands more now have access
to address. They’re not the silver
deposit who can now purchase
to two key Government schemes
bullet to home ownership but they’ll
at any price if they can afford to
designed to get them on the
certainly help many young Kiwis get
service the lending. The old price
property ladder. That’s a positive,
over the line,” says Mr Kearins.
caps, like $400,000 for Taupo, saw
but they should be better promoted
virtually no properties qualify. It’s
otherwise that extra support in
great that many more people and
Budget 2022 will simply be
properties now qualify,” he says.
not taken up.
caps having been now raised to
The Government has estimated that
“Hopefully securing a mortgage
better reflect market prices. First
these changes mean funding is now
will soon not be as difficult with
Home Loans allow eligible buyers to
available for approximately 7,000
imminent changes to the CCCFA.
purchase a home with a five percent
extra First Home Grants and 2,500
House prices are also softening
deposit with no price caps.
extra First Home Loans every year.
which will gives entry-level buyers
Mr Kearins says since late last year
Since 1 June, house price caps
there have been fewer opportunities
on First Home Grants increased
The Century 21 leader says in
for buyers with less than a 20%
in most major cities, including
recent years first-home buyers have
First Home Grants give eligible first-home buyers up to $20,000 for a deposit with property price
C21 MARKET PULSE
08
CENTURY 21
“Yes, interest rates are increasing,
more chances and choices,” he says.
