On the 22nd of May, the New Zealand Government unexpectedly announced the cancellation of the First Home Grant. Applications submitted after 1 pm on that day will not be accepted. However, those submitted before the deadline will still be processed.
What Was the First Home Grant?
The First Home Grant provided eligible buyers financial assistance to 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 About Grant Pre-approvals?
Moreover, if you received pre-approval for the grant and wanted to use it, you must have used it before it expired. Not only that, while not confirmed, it was 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?
Yes, although the First Home Grant is gone, there are alternatives. 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.
Alternative options include:
- KiwiSaver First-Home Withdrawal
- Guarantor Loans
- Shared Ownership
- KiwiBuild Homes
- Bank Specific Offers
So, there are multiple avenues to explore. For this reason, it’s wise to get expert help from Platinum Mortgages. We specialise in finding the right alternatives for you. We have helped many clients navigate the tricky path to home ownership, and we love a challenge! Call us today, and let’s get you on your way!
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