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Visit us on FacebookHousing New Zealand Changes - 2015
27 March 2015As of the 1/4/2015 there are some significant changes for first home buyers in regards to the ability to access funds from their Kiwisaver, Government Grants and Finance options. These intitiative are trying to achieve the following:
There are three main areas these changes will come in to play:
This all sounds very good but what does it mean to those looking to purchase or build their first home.
First up it means that the property price cap has been lifted. In the Eastern Bay of Plenty the property price cap has lifted from $300,000 to $350,000. This means that in this area we can look for a higher priced property and still access Welcome Home loans and the Homestart.
If you are looking to purchase a newly built home or build a new home the biggest difference is under the new HomeStart the Grant that you are able to access is double that if you were to purchase an existing home. This is to encourage people to build and/or developers to market to the First Home Buyer within these price brackets. Housing NZ definition of a “newly built house” will be based around time frames. They define it as being:
People are able to access more from the Kiwisaver which can further boost funds to put towards the purchase.
It should be noted that since the Reserve Bank regulations restricting lenders on their low equity lending most banks have adjusted their lending books to fit within the requirements. Now lenders are looking to lend above that 80% mark and we have seen a more flexible approach making finance for clients with smaller deposits easier. Even on building projects. With these initiatives coming in to play we anticipate a lift in the markets starting with the First Home Buyers.
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