Christopher Luxon defends hiking costs for low-deposit home buyers, saying it had no impact on uptake
New Zealand National Party leader Christopher Luxon defended a government policy that increased costs for low-deposit home buyers. He argued that the policy change did not negatively impact the number of applications for the First Home Loan scheme.
Why it matters
The debate highlights the tension between government fiscal policy and housing affordability for first-time buyers in a challenging economic climate.
Christopher Luxon has defended a move to make first-home buyers pay more under a government-assisted loan scheme, saying it hasn't impacted the number of applications.
At the weekend, National promised - if reelected - to help more people buy their first home by expanding access to the government's low-deposit scheme .
The existing First Home Loan scheme run by Kāinga Ora allows buyers to purchase their first home with a 5 percent deposit, rather than 20 percent which most banks require. National wants to increase the income threshold so anyone earning less than $300,000 combined could access it - whether that was a single or combined income.
The existing cap of $95,000 for single buyers with no dependents, or $150,000 for multiple buyers or single buyers with dependents was set in 2022.
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