Things get easier in less than 4 weeks’ time…
From the 1st October the Welcome Home Loan becomes First Home Loan and the KiwiSaver HomeStart Grant becomes the First Home Grant, and the rules get easier to buy yourself a home. The minimum deposit needed has halved to 5% and the minimum deposit required to get the benefit of the First Home Grant from the government has also dropped to 5%. But for “second chance” buyers the big thing is that you will not be asset tested. If you have assets worth more than 20% of the value of the home you wish to buy that is OK, the old cap is gone and you are no longer excluded.
This has a huge impact on second chance buyers. For example, a $500,000 house did need a $50,000 cash deposit, now the same house only needs a $25,000 minimum deposit which is within easy reach for many KiwiSaver Scheme owners. Add to this a grant of up to $5,000 First Home Grant per person and the deposit becomes very reachable. But as a “second chancer” you can buy the property even if you have assets worth more than the old 20% limit, you can keep your good furniture and car or have the inheritance you might have received without being excluded from starting again with home ownership.
Are you a “second chancer”? A second chancer is defined as “a previous home owner, in a similar financial position to a typical first home buyer.” This often includes people who are divorcees, people recovered from large debts, any people having been caught up in other life situations who are needing to start over.
To find out how these changes (along with low interest rates on offer) will impact you and your ability to own your own home again, contact us now for a free no obligation discussion. Have your questions answered, don’t miss this one!