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First Home Loans 

(Welcome Home Loan before 1st October 2019)

The First Home Loans product has been put in place to help first home buyers purchase a property for themselves.

For many home buyers, the problem with getting a normal home loan is finding the deposit. Most lenders currently require a minimum 20 percent deposit. 

With a First Home Loans you only need a 5% percent deposit.

Help with your deposit is available.

There are several deposit assistance options available:

          -      Your deposit can be gifted by a relative (Please contact us for clarification around                             gifting rules).

          -      You can apply for a KiwiSaver Deposit Subsidy or KiwiSaver Savings Withdrawal.

          -      You can team up with other borrowers to put together your deposit and purchase                             a home.

Maximum amount you can borrow:

The maximum amount you can borrow with a First Home Loans depends on the region you are buying in. Each region has a maximum house price cap. The maximum loan for that region is the house price cap less your 5 percent deposit.

Find out your regional purchase price cap below.

          -      Auckland – $600,000.00          

          -      Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District,                            Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District,                      Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District                                                                            All – $500,000.00

          -      Rest of New Zealand – $400,000.00

Additionally, to incentivise the supply of new builds, the Minister has established a second tier of house price caps. For new builds, each house price cap is $50,000 greater than the cap for existing homes. 

Region	House price cap for existing/older properties	House price cap for new properties
Auckland	$600,000	$650,000
Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District	$500,000	$550,000
Rest of New Zealand	$400,000	$450,000

There are two income caps that apply for a First Home Loans.

          -      For one borrower you must have earned no more than $85,000.00 (before tax) in the

                 last 12 months.

          -      If you are borrowing with one or more other people you must have a combined

                 household income of $130,000 or less (before tax) in the last 12 months.

Are you eligible for a First Home Loans?

You will need to meet the specific lending criteria below.

          -      You must be a New Zealand citizen or a permanent New Zealand resident  (holding

                  a 'Permanent Resident Visa').

          -      Have worked with the same employer for 12 months (there are some cases where

                  this can be 6 months)

          -      Cannot earn over the limits put in place

          -      Cannot purchase property over capped limits

          -      Cannot currently own property (If you have owned property in the past there a couple of

                  circumstances where the First Home Loans product can be used).

Other things you need to know:

          -      The First Home Loans is for owner occupied properties only and cannot be used for

                  rental or investment properties.

          -      You must not own any other property.

          -      You may need to pay fees such as application fees or Lenders Mortgage Insurance

                  fees.