GOVERNMENT HELP TO BUY YOUR FIRST HOME

14 Aug 2019

If you're a first-time buyer and you've been making regular KiwiSaver contributions for at least 3 years, you may be able to apply for a KiwiSaver HomeStart grant through Housing New Zealand, with a cash payment of between $3,000 and $10,000 depending on your circumstances and type of home you are buying. 
 
The main purpose of the HomeStart grant is to lower the total amount of mortgage you need to borrow. 
 
Making Sense of the Eligibility
You are aged 18 years or over
You currently do not own a home or land
You have never received the HomeStart grant
You are a member of a KiwiSaver scheme
You have a deposit that is 10 percent or more of the purchase price. (this may include the Home Start Grant for a new home).
You must have made three years of contributions to KiwiSaver that meet the threshold
Your income must be below $85,000 (for an individual) or less than $130,000 (for a couple buying a home together) 
The property must be priced under the cap for the region
 

​Region

Home price cap for existing/older properties

Home price cap for new homes (also applies to the purchase of a piece of land for a new home)

Auckland

$600,000

$650,000

 
What does "new property" mean?
A vacant residential section on which a new dwelling will be built (i.e. bare land section)
A house and land package purchased off the plans (i.e. purchased from a builder or developer)
A new apartment built off the plans
A newly built property that has received its building code compliance certificate less than six months before the date of the buyer’s HomeStart grant application
 
What's the amount I'm entitled to on a new home?
If you are purchasing a new home, a property bought off the plans or land to build a new home on:
The HomeStart grant is $2,000 for each year of KiwiSaver (or qualifying scheme) contributions, specifically:
If you have 3 years of contributing, you're entitled to $6,000 (the minimum you can get)
4 years = $8,000
5 years = $10,000 (the maximum you can get).
 
Important to know
Buying a home off plan? HomeStart grants can be paid before settlement to meet deposits and/or progress payments
Plan early - Housing New Zealand takes AT LEAST 20 working days to process a HomeStart grant