Unveiling the Updates to the Government’s First Home Grant – A Comprehensive Guide
The New Zealand government, in its continuous effort to support first-time homebuyers, has recently announced significant updates to the First Home Grant. These changes, effective from May 15, 2023, are managed by Kāinga Ora – Homes and Communities and aim to simplify the home buying process, especially for those interested in newly constructed homes or developing new homes.
Understanding the First Home Grant
The First Home Grant is a financial aid programme designed to support first-time homebuyers who have been making KiwiSaver contributions for at least three years. The grant serves as a top-up for the deposit, with the amount varying depending on whether the buyer is purchasing an existing property or a new home or land to build on.
The Changes to the First Home Grant
The First Home Grant programme has undergone the following adjustments, effective from May 15, 2023:
- House Price Caps: The house price caps will be adjusted to reflect the current market conditions. This ensures that the grant remains relevant and suitable to the changing real estate values.
- Price Cap Increase for New Construction Homes: The minimum new construction price cap will rise from $500,000 to $650,000. This change reflects the increased cost of building and aims to address the affordability issues that first-time homebuyers face.
Eligibility for the First Home Grant
To be eligible for the First Home Grant, your home purchase or construction must meet the programme’s requirements. The eligible properties include:
- A vacant residential lot on which a new home will be constructed within a certain time range.
- A home and land bundle that was bought off the plans.
- An apartment that was created from scratch.
- A recently constructed home that was certified as meeting construction codes less than six months before the buyer’s application.
Benefits of New Construction
Constructing a new house offers various benefits for first-time homebuyers. New homes are often built with energy-saving measures and modern insulation, providing better comfort and lower electricity bills. Moreover, when you construct a new house, you can customise the layout and amenities based on your needs.
About Best Mortgages
Based in Tauranga, Best Mortgages has been a trusted mortgage broker for 15 years, helping hundreds of families achieve their property goals. We offer refinance, first home buyer, and investment property loans, serving clients across New Zealand.
We understand that buying a home is a significant financial decision that requires careful consideration. That’s why we listen to our clients and understand their financial situations, providing them with the best financial solutions to help them become homeowners.
Our skilled mortgage brokers shop around for the best lending product for our clients. We strive to make lending easy and guide our clients throughout the process. Whether you’re a first-time homebuyer or a seasoned investor, Best Mortgages can help you achieve your property ambitions. Discuss your home lending needs with us today to find the best mortgage for your situation. Give us a call today on 021 449 177.