National Announces New KiwiSaver HomeStart Grant.

 Welcome News for First Home Buyers!

At the National Party campaign launch today, PM John Key announced some new initiatives to assist more Kiwis achieve the dream of owning their first home.

If National returns to lead the next government, these new measures will come into effect on 1st April 2015.

Today’s news brings the Kiwi dream of owning your own home much closer.   The proposed changes are aimed to encourage the purchase and building of  NEW homes as  the grant favours First Home Buyers purchasing a new home with a larger (double the amount) size grant.

So What are the proposed changes?

Kiwisaver First Home Deposit Subsidy will be replaced with a KiwiSaver HomeStart Grant. This scheme is similar to the First Home Buyers Deposit Subsidy but the property caps have increased to;

New Property Value Limits for New Homes

Auckland $550,000

Wellington, Christchurch and Similar markets $450,000

Rest of Country $350,000

HomeStart Grant (previously Deposit subsidy) will increase as follows for NEW Homes;

After 3 years in KiwiSaver grant per first home buyer will increase to $6000

After 4 years $8000

After 5 years to the maximum of $10,000

This means for a couple both in KiwiSaver that they could be eligible for as much as $20,000 in total

It is understood that if you are purchasing an existing property you will eligible  for half of the above mentioned grant (in other words the same as the current first home deposit subsidy programme)

More to withdraw from your KiwiSaver account

Additionally the changes also allow withdrawal of the Government’s annual contribution to their account of upto $521 per year over and above the current programme which allows withdrawal of all member and employer contributions.

Welcome Home Loan limits will increase

The Welcome Home Loan limits have been increased in line with the Homestart Grant Property Value limits (as listed above)

AS with any new policy, certain aspects will require clarification. We will provide updates and more clarity around these as the policy is fully unveiled.