FIRST HOME GRANT FOR FIRST HOME BUYERS
July 14, 2020 at 6:28 PM
What is a First Home Grant?
The First Home Grant, which is administered by the government department Kāinga Ora (previously known as Housing NZ), is designed to help first home buyers or previous homeowners increase the size of their deposit to purchase or build.
What Kinds of First Home Grants are Available?
There are different types of grants depending on the type of property you are buying.
If you are buying an existing home, you could get $1,000 for each of the 3 (or more) years you've contributed to the KiwiSaver Scheme. The maximum you can receive is $5,000 if you have contributed to your KiwiSaver Scheme for 5 years or more.
If you are buying a new home or land to build on, you could get $2,000 for each of the 3 (or more) years you've contributed to the KiwiSaver Scheme. The maximum you can receive is $10,000 if you have contributed to your KiwiSaver scheme for 5 years or more.
Why Should I Apply for a First Home Grant?
To help increase the size of your deposit, reduce the amount you need to borrow and/or it could be that little bit extra you need to meet the minimum deposit requirement for a bank or lender.
Last but not least - It is non-repayable! Need I say more?
Who Can Qualify for a First Home Grant?
- Over 18 years of age
- Earned less than the income caps in the last 12 months - $85,000 or less before tax for a single buyer or $130,000 or less before tax for 2 or more buyers.
- Contributed at least the minimum amount to KiwiSaver – 3% of your total income (or complying fund or exempt employer scheme) for 3 years or more
- Purchasing a property that is within the regional house price caps. e.g Invercargill, $400,000 for existing/older properties or $500,000 for brand new properties
- Will live in your new home for at least 6 months
- Have a deposit of at least 5% of the purchase price of the house you want to buy or build. This can come from KiwiSaver, HomeStart Grant, savings, gift from a close family member etc..
- Do not currently own any property in NZ or abroad.
When Do I Apply For a First Home Grant?
You can apply for a First Home Loan Grant before you have even approached your bank or mortgage broker. You can also apply before you have found a house!
- Apply for a pre-approval before you start looking for a property to purchase – this gives you certainty around eligibility and how much you may qualify for - valid for 6 months. OR
- Apply for a grant approval if you've found a property and have a signed sale and purchase agreement - you need to apply at least 4 weeks before the day of settlement.
How Do I Apply for a First Home Grant?
You must apply online through the government department Kāinga Ora website, which was previously known as Housing NZ. There are some documents you must have available on your device to upload to the application. Find the documents needed within the link below.