On the 22nd of May, the New Zealand Government surprised everyone by announcing that the First Home Grant had been scrapped and that applications made after 1 pm on that day would not be accepted. However, applications submitted before the cut-off will still be processed.
What Was the First Home Grant?
The First Home Grant gave eligible buyers a financial boost to help top up their deposits. Specifically, it provided up to $5,000 towards the purchase of existing homes and up to $10,000 for newly built homes. Eligibility criteria included income, asset, and purchase price caps.
What if I’m already approved for the grant?
If you have current pre-approval for the grant and wish to use it, you must use it before it expires. While not confirmed, it is unlikely your grant will be extended beyond the pre-approved period.
Why was the First Home Grant cancelled?
Housing Minister Chris Bishop described the grants as “an expensive and inefficient way to support first-home buyers.” Ultimately, the decision was part of a wider initiative to reduce government expenditure.
Are there any other options to help first-home buyers?
Although the First Home Grant is gone, the First Home Loan Scheme remains in place. This is a Government-backed scheme that allows eligible buyers to purchase a house with as little as a 5% deposit.
Moreover, For those with family in a position to help, guarantor loans or gifting can make up the difference in a deposit shortfall.
At Platinum Mortgages, we specialise in finding solutions. We have helped many clients navigate the tricky path to homeownership, and we love a challenge! If you are hoping to buy your own home, you don’t need to go it alone. We can help you identify what you need to do. We can then manage the application process for you. Contact us, and let’s get you on your way!
