The Government has just announced extensive changes that have been made to Welcome Home Loans offered in conjunction with Housing New Zealand Corporation.
The changes announced by Government, which went ahead on October 1, rename Welcome Home Loans to First Home Loans. The new minimum deposit requirement for a First Home Loan* has been reduced to 5%.
These loans will now be supported by Kāinga Ora – Homes and Communities, a newly established entity that replaces Housing New Zealand Corporation’s involvement.
From October 1, Century21 Financial is considering applications for a First Home Loan with up to 95% of the property purchase price.
First Home Loan benefits:
- You can now borrow up to 95% of property value, therefore, meaning you only need a deposit of 5%.
- To be eligible for the 5% deposit, you must have an individual income of less than $85,000 or if it is a shared application you must have a combined income of less than $130,000 (Ongoing from 1 August 2016).
- You must live in the home and it cannot be rented out.