From 1 April 2015 The KiwiSaver HomeStart grant will replace the KiwiSaver First Home deposit subsidy.

The KiwiSaver HomeStart grant provides eligible first home buyers with a grant of up to $5,000 for individuals and up to $10,000 for couples to put towards a deposit for an existing home. So this is the same as the old scheme.

The new KiwiSaver HomeStart grant will also provide eligible first home buyers with a grant of up to $10,000 for individuals and up to $20,000 for couples to help with the costs of building or purchasing a brand new home. So this scheme doubles the potential grant.

In simple terms a person or couple who have been in Kiwisaver for at least 3 years is able to withdraw funds from their Kiwisaver fund plus be eligible for a grant.

A grant of $1,000 (individual) or $2,000 (couple) is available for each year in Kiwisaver up to a maximum of 5 years. However under this revised scheme that amount doubles if buying a new home.

With regard to the Kiwisaver First Home Withdrawal. Tax credits in the Kiwisaver fund can be withdrawn.  So this means that total funds can be withdrawn apart from the $1,000 kick start.

Purchase price caps have been increased under the new scheme and also applies to the Welcome Home Loans scheme:
 

• Auckland $550,000
• Hamilton City, Tauranga City, Western Bay of Plenty, Kapiti Coast, Porirua City, Upper Hutt, Wellington City, Nelson City, Tasman, Waimakariri, Christchurch City, Selwyn District, Queenstown Lakes-$450,000
• Rest of New Zealand $350,000

New property is defined as:
 

• Avacant residential section on which a new dwelling will be built
• A house and land package purchased off the plans
• A new apartment built off the plans
• A newly built property, defined as a property of any type that has received building code of compliance certificate less than six months before the date of the buyers application

If you wish to discuss home loan options please contact us on (09) 476 1199 or email on info@krispedersen.co.nz and we would be delighted to discuss your individual position and arrange a no obligation finance review meeting to more fully understand your situation.