Budget 2022 – What does this mean as a first home buyer?
This Insight is an update to our blog on “Getting on the Property Ladder – Changes to Kainga Ora First Home Grant”.
Changes were announced on 19 May 2022 as part of the Government’s budget. For first home buyers, this means the following: -
Income
The income criteria was changed on 1 June 2022 by the inclusion of a new category with a threshold of no more than $150,000 before tax for an individual buyer with one or more dependents.
Property Price
Many of the house price caps were increased effective from 19 May 2022:-
In the Christchurch area, including Waimakariri District, Christchurch City and Selwyn District, the limit has been increased from $500,000 to $550,000.00 for existing properties, and from $550,000 to $750,000.00 for brand new properties.
In the Auckland area the limit has been lifted to $875,000 for both existing and brand new properties.
In the Wellington Region the limit has been increased to $750,000 for an existing property and to $925,000 for a new property.
In the Hamilton area the limit has been increased to $650,000 for an existing property and to $725,000 for a new property.
In the Dunedin area the limit has been increased to $500,000 for an existing property and to $675,000 for a new property.
In addition to this, a relocatable home with a Code of Compliance Certificate which was issued in the last 12 months, may qualify as a new property.
Changes to First Home Loans
House price caps have been removed altogether for First Home Loans to provide a greater choice of properties.
Remember with these First Home Loans you will only need a 5% deposit.
We can help
For more information, or for help applying for the First Home Grant and/or the First Home Loans Deposit, please do not hesitate to contact our property and conveyancing team.
