National promises wider access to low-deposit home loans if re-elected
New Zealand's National Party has pledged to expand the government's First Home Loan scheme by raising the income threshold for applicants. The policy aims to help more first-time buyers overcome the hurdle of high deposit requirements in a challenging housing market.
Why it matters
Housing affordability is a major political issue, and this policy shift reflects efforts to address the gap between rising property prices and stagnant savings for young professionals.
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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