Posted 6 months ago | By Latitude Homes
Did you know that ‘Welcome Home Loan’ now has a new name? It’s now called the ‘First Home Loan’. Eligibility criteria and rules have also changed since October 2019, and they apply to new and existing homes. If you are planning to build a new home with Latitude Homes, here’s all you need to know.
Well it’s a Government-supported initiative to help first-home buyers get into the property market with a small deposit (less than 20%). If you’re a couple earning a combined $130,000 a year or $85,000 or less as an individual then you (and your partner) may qualify for this.
The main changes announced by Housing New Zealand this year are:
You can have a maximum yearly income of up to $85,000 (before tax) for 1 person. Or a combined maximum yearly income of $130,000 (before tax) for 2 or more people.
You will need a minimum deposit of 5% of the purchase price of the house you are wishing to buy.
There’s a house price cap. The price of the house you are buying with a First Home Loan must be less than the regional house price cap. Which ranges from $400,000 to $650,000 depending on if it's a new or existing house and where in New Zealand the house is.
You are a first-home buyer or a previous home owner, in a similar financial position to a typical first home buyer.
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 will be able to direct you to lenders that work with new builds and give you further information on the criteria you’ll need to meet.