Its Now Easier to Get a Home Loan

Welcome Home Loan Changes!!!

Changes made to KiwiSaver First Home Withdrawal and Housing NZ Subsidy

As at the 1st April 2015 there has been a few significant changes to the Kiwisaver First Home Withdrawal and the Welcome Home Loan scheme which means you may now be eligible to get a mortgage.

Here is a brief overview of what those changes are and how you can benefit from them.


KiwiSaver First Home Withdrawal

You can now withdraw the member tax credit from your Kiwisaver. Therefore instead of only been able to take out what you have put in over the years you can now withdraw your contributions, your employer contributions and the member tax credit, which is the Governments contribution (Fast fact: every $1 a member saves the Government contributes 50c annually, up to a max of $521.43). The $1000 kick start contribution from the Government cannot be withdrawn.

To use your Kiwisaver money for your first home you have to have been a member for at least 3 years and intend to live in the property (not use it as an investment property).


Home Start Grant (previously was known as Welcome Home Loan scheme)

The cap for the New Plymouth market has been increased from $300,000 to $350,000. Which means if the house you want to buy is under $350,000 then you have ticked this box. There are now around 50 more houses available that fall into this price bracket.

The other very exciting change is for first home buyers buying a newly built home will get double the grant amount. Therefore if you have been in Kiwisaver for 5 years + and meet the criteria then you could be eligible for $10,000 ($20,000 if you are a couple). WOW that is great news.
Here are a few things that have not changed:

  • The income threshold will remain the same, so for a single buyer you must earn $80,000 or less per annum; for two buyers or couples the combined income must be $120,000 or below per annum.
  • Applicants must not have had this grant before.
  • Applicants must have a deposit of 10% or more of the purchase price (including the grant).
  • Applicants must have been in KiwiSaver for a minimum of three years
  • Applicants must be a first home buyer (although if you have owned a home before and no longer do you may still be able to make a savings withdrawal)
  • Applicants have to live in the house for a least 6 months, you cannot rent it out.


Email Emma at Ergo Mortgages today for more information about these changes and to see if you qualify for this grant.