The 2022 Budget announcement saw some major changes to Government assistance for first home buyers. The changes will make it possible for more first home buyers to access the First Home Grant to put towards their deposit and be eligible for a 5% deposit using the First Home Loan.
The First Home Grant is a financial contribution for first home buyers to their deposit. Depending on you meeting certain eligibility criteria, you could qualify for up to $20,000 towards your first home deposit.
The First Home Grant application process is handled by Kainga Ora here.
Income:
First Home Grant applicant's income over the past 12 months must be:
Updated Property Price Caps:
The property price caps to be eligible for the grant have been updated based on the lower quartile estimates of new and existing properties in each region. The regional list is extensive, however for example the Auckland cap for new builds has increased from $700,000 to $875,000.
You can view the full list here.
Other Criteria:
The First Home Loan is a home loan option run by Kainga Ora lowering the deposit requirement for first home buyers to 5%. First Home Loans are provided by selected banks and there are certain criteria.
The updated First Home Loan criteria are:
Income:
First Home Loan applicants must have an annual income of no more than:
$95,000 (before tax) for an individual buyer.
$150,000 (before tax) for an individual buyer with one or more dependents. (This is new)
$150,000 combined (before tax) for two or more buyers, regardless of the number of dependents.
Property Price Caps:
The regional property price caps that restricted eligible properties have been removed.
The raising of the First Home Grant caps will mean there will be more new and existing properties that are eligible for the first home grant. This accompanied by house prices easing will hopefully mean a slightly less challenging time ahead for first home buyers.
Possibly of more significant impact, the removal of the First Home Loan's property price caps means that the difficulty of finding a property under the price cap has been removed. This opens up first home buyers to property options around the country where there may be more affordable options.
Whether or not a First Home Loan can help first home buyers will now be more dependent on home loan affordability.
If you would like to get an idea of whether a First Home Loan could be an option for you, please click on the below button and complete the form to get feedback from one of our First Home Buyer's Club advisers.