First Home Grant: What is it?
It’s access to a grant of up to $10,000. If you’re a first-time home buyer, or a previous home owner and you’ve been making regular KiwiSaver contributions for 3 to 5 years, you may be eligible for a First Home Grant. You can apply for the grant through Kāinga Ora.
In this article, we cover:
- The conditions of the First Home Grant?
- KiwiSaver contribution requirements
- Deposit requirements
- Property requirements
- How the grant works
- The new price/grant caps
- What is Kāinga Ora?
What are the conditions?
To be eligible for a First Home Grant, you must:
- Be over 18
- Have earned less than the income caps in the last 12 months
- Not currently own any property
- Have been contributing at least the minimum amount to KiwiSaver (or complying fund or exempt employer scheme) for 3 years or more
- Purchase a property that is within the regional house price caps
- Agree to live in your new house for at least six months
You must also make sure the house or land you want to buy meets the property requirements.
KiwiSaver contribution requirements
You must have been regularly contributing at least the minimum amount to KiwiSaver for three years. The minimum contribution is currently 3% of your total income. Check out Kāinga Ora’s site for a full rundown on KiwiSaver requirements.
Also see our story: Sort Out Your KiwiSaver in 2021: A How to Guide for tips on ensuring you’ve chosen the right fund for you. Use Canstar’s comparison tools, they’re helpful and free to use. Our latest report also highlights the best-value providers and schemes on the market. Just click below:
You must provide evidence that you have a deposit of at least 5% of the purchase price of the house you want to buy or build. This can include money:
- From your KiwiSaver first-home withdrawal
- From your First Home Grant approval/pre-approval amount
- That you have saved in the bank
- You have already paid towards the property
- Gifted by a close family member. (If using gifted money, you’ll need to supply a completed declaration)
The property purchase price must be within the regional house price caps. You must also agree to live in your home for at least six months from:
- The date you buy your home (the settlement date), or
- The date the code compliance certificate for the house is issued, if it is a new build
- You must not currently own any land or property
How does the grant work?
You can apply for either:
- Pre-approval before you start looking for a property to buy – this gives you certainty around eligiblity and how much you may qualify for
- A grant approval if you’ve found a property and have a signed sale and purchase agreement
If you buy an existing home
You can get $1000 for each of the three (or more) years you’ve paid into the scheme. The most you can get is $5000 for five or more years.
If you buy a new home or land
You can get $2000 for each of the three (or more) years you’ve paid into the scheme. The most you can get is $10,000 for five or more years.
What are the new price and income caps?
As of April 1, 2021, the First Home income and house price caps increased across NZ.
New house price caps
|Existing Property Cap||
New Property Cap
Wellington City, Hutt City, Upper Hutt City, Porirua City, Kāpiti Coast District
Nelson City, Tasman District, Tauranga City, Western Bay of Plenty District, Hamilton City, Waipā District, Hastings District, Napier City
Christchurch City, Selwyn District, Waimakariri District
Waikato District, Dunedin City
|Rest of New Zealand||$400,000||
New income requirements
In the 12 months before you apply, you must have earned:
- $95,000 or less before tax for a single buyer
- $150,000 or less before tax for two or more buyers.
What is Kāinga Ora?
Kāinga Ora – Homes and Communities was founded in October 2019. It’s a government organisation that brings together the people, capabilities and resources of the KiwiBuild Unit, Housing New Zealand and its development subsidiary HLC. It was designed to enable a more cohesive approach to delivering the government’s priorities for housing and urban development in New Zealand.
Canstar has a full guide on buying your first home in our story:
You may want to also check out: Can You Buy a House With No Deposit?
Want to save money on your mortgage? Canstar can help
One of the easiest ways to reduce the cost of your mortgage is to ensure you’ve thoroughly compared what’s out there. And this is something Canstar can help you with, thanks to our free and easy-to-use comparison tools. In the table below, you can view a snapshot of home loans currently available in the market for refinancing. Please note that this table has been generated based on a two-year fixed residential rate for $500,000 in Auckland, and is sorted by current rate (lowest to highest). If you’re interested in comparing for other regions, or loan amounts, check out the links and button below.
For our five-star home loan awards click here, or to compare rates hit the button:
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