National promises low deposits for more first home buyers
The National Party in New Zealand is proposing to increase the income threshold for the First Home Loan scheme to $300,000 to assist more first-time buyers. The party aims to raise home ownership rates to 74% by making it easier for those who can service a mortgage but struggle with a 20% deposit.
Why it matters
The proposal highlights a political strategy to capture the support of young professionals struggling with housing costs.
National is promising to help more people buy their first home by expanding access to the government's low-deposit scheme, if it's re-elected.
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.
If elected, National would increase the income threshold so anyone earning less than $300,000 combined could access it - whether that was single income or combined income.
Housing spokesperson Chris Bishop said many would-be first home buyers could afford to service a mortgage, but struggled to get together a deposit.
The scheme's current cap of $95,000 for single buyers with no dependents, or $150,000 for multiple buyers or single buyers with dependents, was too restrictive, he said.
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