Announced in Budget 2022, more New Zealanders are able to get into their first home because of changes to First Home Grants and First Home Loans.
The changes include:
- House price caps for First Home Grants increased in many parts of the country
- House price caps for First Home Loans removed entirely
- Kāinga Whenua Loan cap will also be increased from $200,000 to $500,000
- The Affordable Housing Fund to initially provide support for not-for-profit rental providers
- Significant additional funding to meet existing and planned public and transitional housing costs
Hon Dr Megan Woods said “We estimate that these changes, along with other changes to the eligibility criteria, will help thousands more first home buyers, with funding available for approximately 7,000 extra First Home Grants and 2,500 extra First Home Loans available every year.
“The house price and income caps will now be reviewed every six months to make sure they continue to stay up to date".
Taranaki Caps for first home buyers
|Existing Properties||New Build Properties|
|District||Previous Cap||New Cap||Previous Cap||New Cap|
|New Plymouth District||400,000||525,000||500,000||675,000|
|South Taranaki District||400,000||400,000||500,000||500,000|
Affordable Housing Fund
The Affordable Housing Fund is a new programme to support the development of new affordable homes for low-to-moderate income families and whānau in areas facing the biggest housing supply and affordability challenges.
The $350 million fund will leverage partnerships with investors, philanthropic organisations, developers, and the affordable housing sector to expand the range of housing options for people whose needs are not currently being met by the market.
The first stage of the Affordable Housing Fund will offer $50 million worth of grant funding to not-for-profits to deliver affordable rental housing in Auckland, Tauranga, Rotorua, Napier/Hastings, Wellington, and Nelson/Tasman.
The changes to the First Home Grant take effect from 19 May 2022. The changes to the First Home Loan and Kāinga Whenua Loan take effect from 1 June 2022.