As of 22 May 2024, the Housing Minister announced the end of First Home Buyers Grant. The First Home Buyers Grant was introduced in 2010 which allowed first home buyers to receive a contribution to their purchase. The eligibility criteria were:
- You had to be contributing to your kiwisaver for a least three years;
- You had to meet the income cap to qualify; and
- You had to purchase a property within the regional house prices caps.
Although the First Home Grants have been scrapped, it is not all bad news!
Fortunately, for anyone who had submitted a new application before 1pm, 22 May 2024 the application will continue to be processed and pre-approval will be issued to those who qualify for the grant. Pre-approval is valid for 6 months from the date of the approval letter, the exact date your pre-approval expires will be listed on the email or letter you received from Kainga Ora.
If you are in the process of purchasing your first home, it is critical you check the expiry date of your pre-approval and ensure your mortgage broker and lawyer are aware of this date so you do not miss out on the funds. Once you have notified your solicitor of the pre-approval date and you have entered into an unconditional contract to purchase your first home an application can be sent off to Kainga Ora for the grant. The earlier the application can be sent off the better to allow Kainga Ora time to review and process the application.
The First Home Loan Scheme which allows First Home Buyers to purchase a property with only a 5% deposit (with participating lenders) is still being offered through Kainga Ora.
If you need any assistance with your Kainga Ora application or in the process of finding a property, please contact the team at Godfreys Law.
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