Posted 47 days ago | By Latitude Homes
Housing New Zealand announced some awesome changes which will help thousands of New Zealanders to get into the property market - read our recent blog about changes to home loans criteria: 5% deposit home loans can be used for new builds.
In this blog we go though the changes to the ‘KiwiSaver HomeStart’, which has also changed its name to ‘First Home Grant’. If you are planning to build a home with Latitude Homes and have been contributing to KiwiSaver, here’s all you need to know.
It is a grant of between $1,000 - $10,000 to be used towards a first home, but only people whom have been contributing to the KiwiSaver scheme are eligible. Keep in mind you have to contribute for a minimum of three years before you’re eligible. It can be used for either a new build or an existing house.
If you’re applying for this grant to purchase an existing house you’ll receive $1,000 for each of the years you've paid into the scheme. The most you can receive is $5,000 for 5 or more years.
If you are buying or building a new home or land to build on, you can get $2,000 for each of the years you've paid into the scheme. The most you can receive is $10,000 for 5 or more years.
If you do have a small deposit, less than the standard 20% you may also be eligible for the First Home Loan initiative, to find out more about that read our blog: 5% deposit home loans can be used for new builds.
You can also apply to withdraw from your KiwiSaver (minus the initial $1,000 you may have started with). Receiving the First Home Grant and using a withdrawal, either the extent of your KiwiSaver or an amount you choose can help you on your way to reaching your 5-20% deposit needed to buy or build or first home.
You know that Latitude Homes do all that we can to make the building process “Too Easy” but for some people, the dream of building a new home comes crashing down when it comes to finding the finance to build.
That’s why we have partnered with First Step Home Loans. They make it easier for first-time home buyers, and those new to building, to secure finance for a construction loan and ensure that they can confidently live their dream to build. They are experienced advisers who can guide you through the mortgage process and ensure you fully understand your finance options.