What is a Welcome Home Loan and Do You Qualify?

The Welcome Home Loan is a loan scheme for first home buyers which is underwritten by Housing New Zealand. Housing New Zealand don’t provide the loans themselves but underwrite (guarantee) them for the banks who have been approved to offer Welcome Home Loans.


So how is a Welcome Home Loan different from a standard bank loan?

Due to LVR Restrictions Banks often require a minimum 20% deposit however with a Welcome Home Loan you only need a minimum of 10% deposit.


Do I qualify for a Welcome Home Loan?

To be approved for a Welcome Home Loan you must meet the following criteria;

  • Be a first home buyer
  • your earnings must be within the earnings cap
  • Buy a home for no more than the regional property price caps
  • Must be going to live in the property

So what are the Welcome Home Loan Rules and Restrictions?

Income caps;

  • For 1 borrower you can have a maximum yearly income of no more than $80,000 (before tax).
  • For 2 or more borrowers you can have a combined maximum household yearly income of no more than $120,000 (before tax).

 Regional property caps;

  • Auckland – $485,000
  • Wellington City and Queenstown Lakes – $425,000
  • Christchurch City and Selwyn District – $400,000
  • Thames/Coromandel, Hamilton City, Western Bay of Plenty, Tauranga City, Kapiti Coast, Porirua City, Hutt City, Upper Hutt, Tasman/Nelson and Waimakariri  – $350,000
  • Rest of New Zealand – $300,000.

Can my 10% deposit be borrowed?

No your deposit cannot be borrowed but can be one or a combination of the following;

  • KiwiSaver Withdrawal
  • First Home Buyers Deposit subsidy
  • Savings
  • Gifting

Will I need to pay a low equity fee?

Yes a 1% low equity fee based on the sum borrowed will apply.


Can I add the low Equity Fee to my loan?

Generally yes, the fee can be added to your loan.


Can I Build a home using a Welcome Home Loan?

Yes some lenders will support purchase of a house and land package.


Interested in applying for a Welcome Home Loan or need more information?

Call The First Home Buyers Club on 0800449049 – we are here to help!


Karen Lewis July 17, 2014 Blog